Re: Are my sims doing things while rotating households?
All your households are in the same world. If you play them like that, time will pass.
If two of your sims, that are in different households, are friends, they might hang out with each other right? So if you play with one household, say the sim is called Ryan. And you invite Charlotte, from another household, so a bar. When you're at the bar, you decide to leave the game, and next time you come back you want to play with Charlotte's household instead of Ryan's. Then you will start at the bar because that's where she was the last time! Logic! 🙂
If you do not want to play like this, with your sims in the same world interacting with each other, you have to start a new save/new game, on the main screen and create your new household in their own world.
What I usually do is try to switch households on the weekend. Sims might miss work or school, or not do their homework, but when you're not controlling them, it does not infect their grades or career progression. If you start their gameplay on Tuesday noon though, they might still be at home and really late, then it will have an impact. Therefore I try to change when as many sims as possible are supposed to be at home 🙂