funds are not due to limited space and money, I think you do not have to do too much trouble, as long as you say the two functions on the line
if the child is a boy, the wall can be painted pale blue or pale green fruit; if it is a girl brush some pale, pale light yellow. Buy a bunk bed, a child can sleep above, below, put a pull-out sofa bed, the old man came, as long as the sofa can be opened. When the old man is not the sofa together, the following space will be more spacious.
buy a small desk, shelves might consider doing a few wall partitions, this would be good to save space. I think we should also be able to let go of a one meter wide small closet.
room color should not be too bright, too fancy, such a small space can be very dry, it is not conducive to rest. But because as long as the child is living, can not color too depressed in the paint when we must pay attention to the decoration master color. To make the room look a little lively, you can buy some wall stickers affixed to the closet door and desk shelves
these points, it will achieve good results