Here's an important point: We think you'll feel much better about that cost, as we did, when you break it down. It translates to $8,896.66 a year, $741.38 a month, $171.08 a week, or just $24.24 a day. You can manage that, can't you, in return for having your heart swell with pride and love every time you hold your child's hand?

If we were talking about anything else, we'd say wait until you can afford it. But you can't always postpone the arrival of a baby. And let's be realistic—who is going to let a little thing like money get in the way?

Your First (Baby) Steps

What we will say, though, is that if you want to start a family or add to an existing one, all of our advice about living on a budget (or, as we prefer to call it, a "success plan")—steering clear of debt; avoiding getting overextended with too many houses, cars, and other grown-up toys—all of this advice applies, quadrupled.

By the way, whatever your income level, it still isn't a bad idea to find some large vessel and throw spare change in whenever you can. Make it a little secret stash. You'll be surprised at how it will add up. We still keep a stash!

When Meredith was a child, we started putting some money into mutual funds for her. We didn't think she was particularly concerned about the value of her investments . . . until the morning after October 19, 1987. Remember that day known as "Black Monday," when the Dow Jones Industrial Average plunged by 22.6% and a five-year bull market came to a screeching crash?

Meredith, who had just turned 15, walked into the kitchen where we were preparing breakfast, and asked us, "So how much money did I lose yesterday?"

Children and adolescents hear about bad news in the world and carry all of the weight on their fragile shoulders. More children than adults suffered post-traumatic stress syndrome in the year following the September 11th terrorist attacks. We wish we had a prescription for all of the world's ills. But we can tell you how to help your children feel more secure in insecure times by showing them that you are in control of your finances and teaching them how to be money-savvy.

Kids who learn early on how to properly manage their money have greater self-esteem and a sense of independence. Bad money habits may lead to problems in other parts of their lives later.

It's never too early to talk to your kids about financial responsibility. Just how early? You can start talking to kids about money as soon as they understand the concept. For example, when they reach age five or six, you can say to them, "This toy or candy bar costs so much money." You can use Monopoly or real money to show them.

We'll leave you with what we consider to be the most important advice we can give you on this subject: Kids are copycats, so parents had better practice what they preach. Show them how to be money-savvy by spending and investing wisely yourself, and by saying no both to yourself and to them when something is too expensive.

You and your kids will be richer for it – in more ways than one!

Learn more about teaching your children smart money management with these articles:

• How to Bring Up Money-Savvy Kids
• Summer Jobs – Everybody Wins!
• How Much Allowance Should You Give Your Child

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