This is a huge topic you're asking about. :) I'll try to give some general comments with plenty of photos to illustrate what life was like.

The Netherlands were neutral before World War 1 and remained neutral for the entire duration. The war did have a huge impact on the lives of the Dutch though.

Mobilisation

Firstly, the Netherlands had a policy of armed neutrality. This meant that, in theory at least, the Netherlands would fight any forces attempting to enter its territory, no matter which side those forces belonged to. In practice, minor violations were dealt with amicably (photo shows Dutch and German soldiers looking at a map to discuss a border violation), whereas major violations resulted in capture and internment of foreign soldiers (photo shows Belgian POWs interned in the town of Urk; some POWs were interned in towns, others in camps). Exchange of wounded soldiers also took place in the Netherlands.

Armed neutrality meant that the Dutch needed to have a credible defence force. In late July and early August some 200.000 soldiers were mobilised. The general population near the border would notice the impact of this immediately. A state of emergency was announced for all border regions, and soldiers were garrisoned in houses, factories, schools, and stables. Some people had to leave their houses because they lived in planned fire zones. Elderly people in areas with large garrisons were put to work as cooks (I use the word loosely). Moreover, the jobs of the mobilised soldiers had to be taken over by other people, resulting in more women in the work force. The contributions by women during the war would be a factor in first-wave feminism, which resulted in woman's suffrage at the end of the war.

Minor effects of the war

The Netherlands being right in the middle of the fighting - just a few dozens of kilometres from the Belgian fronts by land, and exactly between England and Germany by air and sea. Zeppelin pieces fell onto Dutch soil, planes crashed or made emergency landings inside the Netherlands. Sometimes this resulted in damage. There was also the occasional case of mistaken bombardment near the border.

Early on in the war, the general population (outside of the border regions) didn't have to change much in their daily lives. Food was rationed but still available in sufficient quantity. Many things became more expensive though, as the Netherlands are a nation dependent on trade - which was made more difficult due to the war raging in the rest of Europe. Still, in 1916 a protest in The Hague against the rising prices was pretty good-natured. Just a year later, protests had become more violent.

Major effects of the war

In the early years of the war the Netherlands continued trading with all parties. Trade was somewhat hampered by the mining of shipping routes (by all parties) and by German u-boats and a British blockade of 'contraband' (war materials destined for Germany). For the first 2 years this was pretty limited though. In the second half of 1916 however the British started expanding the list of 'contraband' to include essential goods such as food and coal. Moreover, in january 1917 Germany commenced with unrestricted submarine warfare. This meant that the general population suffered a lot more during the second half of the war. There were long lines for food distribution and lots of empty coal carts. This did lead to unrest among the population, with demonstrations becoming more common; sometimes resulting in the police having to disperse the crowd.

Another major effect was the huge influx of Belgian refugees. About a million Belgians sought refuge in the Netherlands, which is about one-sixth of the Dutch population at the time. The refugees were housed in camps and received basic necessities. Some returned home after the western front had stabilised, but others remained for the duration of the war. Taking care of them all was hard, especially after the blockade and unrestriced submarine warfare. Some refugees waited in the streets, hoping to get alms from passers-by.

Most of the refugees arrived in the first year of the war, as in the spring of 1915 the Germans started building an electric border fence to prevent smuggling and espionage. This electric fence was also called de Dodendraad ('the Wire of Death') or even just De Draad ('The Wire'). This picture shows a Dutch soldier retrieving a dead cat at the fence. More morbidly, this picture shows a German soldier demonstrating where and how a body was lying when they found it.

Conclusion

Life in the Netherlands during World War 1 slowly changed from being pretty good with only slight adaptations to the war surrounding the country to being not quite so good or even pretty bad (but not nearly as bad as Belgium) due to the naval blockade and unrestricted submarine warfare.