By Dana Quinn, Waddell & Reed

Children are special.  There’s nothing like them. They can be our sweetest blessing, as well as our biggest frustration.  Most of all, however, they are our greatest responsibility as well as our most important-and expensive-commitment. We try to protect them and want them to grow up in a stable world, one in which they are physically safe, emotionally nurtured and financially secure.  There is no question that for most of us, meeting expenses can be a challenge.

The average nationwide cost of raising one child from cradle to age 18 ranges from $210,340 to $483,750.  Then, when they turn 18, add in college expenses and your financial outlay gets even larger.  How much larger? According to the College Board, for the 2009/2010 school year, the average cost of one year at a four year in-state school is $19,388 and a private college is $39,028.

The bottom line is: Children are expensive!  Between raising them and educating them and making sure they get a good strong start in life, one thing is obvious…they are a major responsibility.  Fortunately, as long as we remain alive and healthy, we somehow manage to meet the expenses for our children.  Its part of what parenthood is all about.

The difficult part for most families is that our children are not our only financial responsibilities.  We also have the day to day expenses of running a household, paying a mortgage, driving our cars and trying to put money aside for retirement.  These are crucial years that set the stage for our entire financial lives.

No matter what your current financial situation is, even small steps, can make a big difference over time.  The only thing you can really do wrong….is to not do anything at all!

Here are some things to review, and move ahead with…right now…that will help in the years ahead:

LIFE INSURANCE:  I know…you hate to talk about it!  The fact is that when your children are young, your savings are low and the death of a parent is a devastating event both emotionally and financially.  Buy the most coverage you can now, while you are young and healthy.  When your children are grown and on their own you can reduce your coverage but don’t scrimp on it now.  It is vitally important!

COLLEGE SAVINGS:  JUST DO IT! Even $50 a month…every month…adds up to something.  Also, don’t think you had to start when your child was first born.  Even if you have a 10 year-old it is never too late to start.  Ask any parent of college age children if they wish they had even a few thousand dollars extra and you will get a resounding YES!  Just open a savings at your bank and start putting away their birthday money plus a regular amount each month.  You can transfer that to a 529 plan or Coverdell savings later on.

YOUR RETIREMENT PLAN: Someday your children will be adults…and you WILL get to retire.  Many couples are becoming parents in their 30’s and 40’s which means that college funding, and retirement planning will be happening back to back…or even simultaneously!  You can take out loans for college…but not for retirement.  Always, make contributions to your retirement plan a priority!

Hang in there…you CAN do this, and enjoy watching your children grow up.  The years fly by and before you know it they are gone.  Simple steps, for you and for them, are what make the biggest difference along the way!

Dana has over 20 years of experience in the automotive industry, real estate and mortgage business.  As an advisor at Waddell & Reed, Dana designs and implements comprehensive and customized financial plans for families, individuals and businesses.