All of the values displayed in any of those built-in "Storage" tools are bogus. Don't look at them at all. At best, you will only get confused. At worst, you'll take some action with possibly catastrophic results.
These user interfaces are designed for Apple's "ideal" user. This is someone who has purchased a premium device with at least 500 GB of storage. They have a single user account on the device.
Unfortunately, you have deviated from that ideal usage. Your hard drive is too small. You've compounded that problem by adding a second user. You are likely to have storage problems in the future. Please do not use Apple's built-in storage tools to resolve those problems. They won't help you.
The only useful built-in storage information you have is in Disk Utility. Use this to keep track of your free storage. If you start to run out of storage, you will need to take action. You can purchase more iCloud storage and configure Music, Photos, and iCloud Drive to fully utilize that iCloud storage. You will have to pay monthly for this. Did you think you were going to save money with a smaller hard drive? 😄
Note that in many place, you may see "available" storage displayed. This is not the same as "free" storage. This is another area of great confusion among users. It is very common for people to run out of storage while still having many hundreds of gigabytes "available". You will experience this, I'm sure. You cannot delete your way out of this problem because you cannot actually delete files. This situation normally resolves itself after a couple of days when Apple's system deletion tools run and finally erase the files that you've flagged for deletion.
In the future, buy a separate computer for each user. Never buy a hard drive smaller than 500 GB. 1 TB would be much better. You can use an external drive for Time Machine (which I recommend) and for archiving important files. But I don't recommend trying to use any kind of external drive for other purposes. It won't be a good experience.