Buddhist answer - God didn't create us, our spirits always are and were and are bound to the physical world by karma which once extiguished, causes the soul to be released from reality and existance.
Hindu answer - We are all apart of Brahman, the ultimate reality, and our lives are a continued cycle of birth, life and death, held by the laws of karma, where the only constant is the search for truth and to become one with Brahman.
Jewish/Christian/Islam(?) answer - God created us so that we can choose Him. God made angels to worship and serve him. But angels had no free will. He made humans with free will so that they had to choice of accepting or rejecting Him.
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