100 Powerful Promotion Tactics!: Tactic #25

Make your web site ready for the public. Have an "About Us" page and clear descriptions of what
actions you want your visitors to take. For example, you could say "My name is (your name). I started this candy business back in 1975 with my brother Jim. In 1999 we brought our business to the web and now we ship our candies to 50 countries around the world."

100 Powerful Promotion Tactics!: Tactic #24

Keep your web site consistent. You don't want things on your web site that are unrelated to your
theme. For example, if you went to a web site and one page was blue and the next page was pink, then the next page was green, wouldn't you think very hard before purchasing their product? It would look very unprofessional to you.

100 Powerful Promotion Tactics!: Tactic #23

Allow visitors to submit a free classified ad on your web site. Require them to give a valid
e-mail address in order to post an ad. You could also require them to give you a reciprocal classified
in return on their web site, in their e-zine, on their autoresponders, etc.

100 Powerful Promotion Tactics!: Tactic #22

Increase your profits by concentrating on small details. Improving small things like text size, color,
or graphics can really make a positive difference. For example, if people can't read small text how are they are going to buy your product? Another example, why would somebody spend time at your web site if your colors are all bright ones and hurt their eyes?

100 Powerful Promotion Tactics!: Tactic #21

Ask visitors to sign your guest book. Tell them you will give a free gift in return. When people sign
your guest book, they will usually leave helpful advice on how to improve your web site and product. They will sometimes leave compliments which will brighten your day.

100 Powerful Promotion Tactics!: Tactic #20

Offer a free online service from your web site. Have visitors fill out their contact information to
sign up for the free service. For example, if your visitors are webmasters, you could offer a free web site design critique service. Another example would be to offer an online graphic creation service.

100 Powerful Promotion Tactics!: Tactic #19

Create your own ad copy; don't copy the basic run-of-the-mill ad copy. Don't be afraid of trying
something different to increase your sales. For example, get people’s attention by using a wacky
or funny picture of yourself. Another example would be to spell your headline backwards.

100 Powerful Promotion Tactics!: Tactic #18

Try not to get caught up in loading your site up with technological gizmos and gadgets. Concentrate on your words, they will do the actual selling. For example, some of those high tech things make your web page load slower and some people won't want to wait around when there are thousands of web sites similar to yours.

100 Powerful Promotion Tactics!: Tactic #17

Focus your site on your visitors’ desires, not on yourself. They want to know what's in it for them,
not that you won an award for your business. For example, don't make your ad mostly about what
you have done, make it about what benefits the reader will get for buying.

100 Powerful Promotion Tactics!: Tactic #16

Spend money on targeted advertising instead of mass media advertising. You don't want to waste
your ad dollars on people who aren't interested. For example, you don't want to buy a business
opportunity ad in a football magazine unless it is related to sports. If you are sending your ad to a
general audience, make sure they have a section for your particular sub-set of that audience.

100 Powerful Promotion Tactics!: Tactic #15

Interview famous people who your visitors want to know more about. Publish the interview in article or audio format on your web site. For example, if your target audience is business owners, you could interview other business owners, business experts, opportunity seekers, web marketers, affiliate program owners, business authors, etc.

100 Powerful Promotion Tactics!: Tactic #14

Create a free e-zine. Use your e-zine to advertise the affiliate programs you've joined. Submit your
e-zine to online e-zine directories and promote it on your web site. Trade e-zine ads with other publishers. Announce your e-zine to e-zine announce lists.

100 Powerful Promotion Tactics!: Tactic #13

Visit business discussion boards regularly. You could discover helpful advice, online resources, and
take the opportunity to give your own two cents worth. Plus you can get free advertising. On most boards you can include a text link to your web site. It doesn't matter if you ask questions, give answers or inform people.

100 Powerful Promotion Tactics!: Tactic #12

Advertise the product you're reselling in your signature file. Use an attention-getting headline and
a good reason for them to visit your affiliate site. Make sure your sig file doesn't go over 5 lines. Also include your name, occupation, business name and e-mail address.

100 Powerful Promotion Tactics!: Tactic #11

Have some mugs imprinted with your web site address and other business information. Use them
when you have company or give them away to friends and family as gifts. You could donate some
to the local coffee shops and increase your web site exposure.

100 Powerful Promotion Tactics!: Tactic #10

Have some pens imprinted with your web site address and other business information. When you
have finished filling out your check or signing receipts, leave it for the next person to use or keep. You could also give a number of them to your employees and friends.

100 Powerful Promotion Tactics!: Tactic #9

Have some duffel bags made with your web site address and other business information. Give them to family and friends as gifts or use them when you travel. You could also donate some to exercise gyms, school kids, sports teams, etc. This would give you a wide variety of people who would see your ad.

100 Powerful Promotion Tactics!: Tactic #8

Create a net audio with your advertisement and link of your affiliate web site. The subject of the free audio should draw your target audience to download it. Also submit it to some audio directories. The more exposure your free audio gets, the more your ad will be seen.

100 Powerful Promotion Tactics!: Tactic #7

Tell your prospects that you stand behind all your products. People want to know that you back-up
any claims you make about your product. For example, "I personally guarantee my product will
work or your money back." Another example, "(title) Research Inc. has documented, proven studies our product will…"

100 Powerful Promotion Tactics!: Tactic #6

Have a magnetic sign made with your web site address and other business information. Place it on
your car door or roof when you are traveling. You could also perhaps pay a local cab or truck shipping company to place them on their vehicles to get extra exposure.

100 Powerful Promotion Tactics!: Tactic #5

Give your visitors a free net video. You could also include your own ad on the video and allow
other people to give it away. If you don't want to take the time to create one, you could ask other
people permission to use their video. They will just want you to advertise their product too.

100 Powerful Promotion Tactics!: Tactic #4

Have some ball caps made with your web site address and other business information. Wear them
to keep the sun out of your eyes and promote your business at the same time. You could also order a large number of them and donate them to a local sports team. People in the stands at each game
would see your web site address.

100 Powerful Promotion Tactics!: Tactic #3

Clone your advertisements all over the Internet by allowing your visitors to give your online freebies away. Just include your ad somewhere inside them. You could also start an affiliate program and pay people commissions to run your ads. You could also give your affiliates viral marketing tools to use like e-books or articles.

100 Powerful Promotion Tactics!: Tactic #2

Have a bumper sticker printed up with your web site address and other business information. Place it on the bumper of your car. People will see it when you're driving. For example, if I was having money problems and I suddenly saw a bumper sticker about getting out of debt, I might go home and visit that web site.

100 Powerful Promotion Tactics!: Tactic #1

Allow people to download software or e-books from your web site at no cost. Just ask your visitors
if they'll refer their friends to your web site in return. For example, you could require people to refer 3 people via e-mail before they actually download your free e-book.

The Five Rules of Money for Children

Teaching young people these essential concepts now can help them make smarter financial choices as they grow up

It's never too early to start teaching your kids about money. Toddlers can be introduced to the value of money using toy piggy banks and cash registers, while older kids can learn to manage cash and pretend to be real estate moguls by playing Monopoly. To get a taste of trading stocks and mutual funds, there are online games and contests, as well as investment clubs. And more importantly, high schools and colleges around the country are now offering personal finance courses, with some making the class a requirement before graduation.

More from BusinessWeek Online: • Video: Kids & Money: Teaching Kids Good Money Habits • IRAs for Kids: It's Never Too Soon • Finance Courses Get Personal

The first step for parents, say financial planners, is to start talking about money matters at home. "Having conversations about money at a young age lays a good foundation," says Phyllis Silverman, vice-president and senior trust advisor at PNC Financial Services in Pittsburgh. "That's going to create the attitudes and lay the foundation for their future actions."

One planner, Charles Massimo, president and founder of CJM Fiscal Management in Garden City, N.Y., says he has hired a psychologist to establish a proper way for his wealthy clients to communicate with their kids, because many parents worry the knowledge of their wealth will create complacency. "They worry their kids will be lazy and not motivated if they know they'll have money coming their way," he says.

This week's Five for the Money offers some golden rules about money to pass along to your children. With the right lessons and planning, your kids, as they grow older, may be able to avoid money traps like getting deep in debt from those alluring but deceptive credit card offers—and embrace sound strategies as they save for big purchases such as graduate school, car, and a home.

1. A penny saved is a penny earned.

Parents can start teaching kids about earning money as early as elementary school, Silverman says. Set a weekly or monthly allowance for chores done around the house, and offer extra for helping neighbors and performing other tasks. "Allowance should not be seen as an entitlement; it should teach responsibility," Silverman says.

Then show your kids how to split their earnings into four money jars: for saving, spending, giving, and taxes. While younger children may not necessarily owe Uncle Sam a portion of their earnings, an awareness of taxes can be useful. "As they get older and get into the workforce, they'll find that what they earn and take home are two different things," she says of the importance of setting aside tax funds.

2. Stick to the budget.

Show your kids your monthly bills such as car payments, mortgage, and utilities, says Robert Wasilewski, a financial advisor at Baltimore Washington Financial Advisors in Columbia, Md. This will not only teach them about your family's cost of living, but also get them involved in the process. "Teaching people about money is a lot like poker," he says. "No one will play until their money is in the pot."

Make a list of wants vs. needs with your kids. When it comes to spending, parents need to ask why their kid needs something—or if they just want it, Silverman says. "It's a conversation about values," Silverman explains. Granted, this list will change as teenagers start driving and working part-time, and have busier social lives. They need to learn how to budget their monthly earnings to cover expenses.

3. Learn the power of interest.

Take your child to a bank and open an account that earns interest. Let the child decide how much to put in and let him or her calculate the interest the account is earning over time, Wasilewski says.

Or, rather than hand kids cash to spend each week, parents can put a set amount in the bank account. In a survey done in January, 2007, PNC found that 63% of parents set up a banking or investment account, but only about 21% of teens put money into the account or make investments.

When it comes to investing, children should learn how owning a diverse number of stocks and funds can grow in value over a span of many years. Massimo says his wealthy clients set up investment clubs—and let their kids pick three or four friends to join—to teach them investing basics. Wasilewski thinks that some of the online stock market games teach young people that stocks are a short-term holding and tend to go up, rather than the important lesson that stocks should be owned for the long run and can easily decline.

To learn about the economy and personal finance matters, Wasilewski recommends the Federal Reserve's Web site, which also features a Kids Page.

4. Stay out of debt.

Credit card offers with your child's name arrive in the mail sometimes as early as high school. Show your kids your credit card bills and how to pay them off on time to demonstrate how the cost of an item goes up because of the interest charged. And teach children how the bad habit of paying late can put you in a deep financial hole.

At the same time, it's important to establish a good credit history, because there will likely be a time when your kids are going to need to borrow money. "The big problem is, young people don't really understand how to get interest to work for them," Wasilewski says.

5. Giving back is the best gift.

Donating to charities, including volunteering in your community, is "a really important value for children to learn," Silverman at PNC says. At a young age, your kids can donate clothes and toys that are usually collected by organizations around the holidays. According to the recent PNC survey, 40% of parents said they encourage kids to participate in community events. Many high net worth families set up foundations and let their children pick the socially responsible causes they want to get involved with, Massimo says. "They want to teach the value of giving time, but also giving money responsibly," Silverman says.

Another way to give back, Massimo says, is teaching kids how to invest in socially responsible stocks—usually companies that are environmentally friendly and don't make alcohol, tobacco, and firearms—or funds that emphasize those kinds of stocks. Whether it's getting, spending, or giving, teaching your children some sound financial principles now should help them to make smarter choices about their money as they grow older.

McCormack is senior producer for BusinessWeek.com's Investing channel.

Copyrighted, Business Week. All rights reserved.

finance.yahoo.com

A Common Sense Allowance System

How much money to pay your kids and when to start.

A recent column in the Wall Street Journal took on the subject of allowances, quoting advice from "experts" on how parents should structure an allowance system.

Now, I'm a big booster of allowances -- which I define as a fixed amount of money that children receive on a regular schedule, with the understanding that they will pay for certain agreed-upon expenses. But based on my experience with my own three kids and that of hundreds of parents I've heard from over the years, I have a different take than some of the "experts" referred to in the story.

For example, a common rule of thumb is to pay kids $1 a week for every year of their age. But many parents think that's too much for younger children; they're reluctant to give a 6-year-old $6 a week.

So I recommend that you start with a weekly base allowance equal to half a child's age. Parents feel more comfortable with the half-age figure, and you can always adjust it up or down.

According to the story, "experts say" that kids should start learning to manage money at the age of 3 or 4. I think that's too early.

I believe in keeping kids young as long as possible and not pushing them into things they're not ready for. And most pre-schoolers are too young to understand the abstract idea of money. They'll choose a nickel over a dime because it's bigger, and they have no idea how far $1 will go.

A better time to start an allowance is at age 6 or 7. Not only are children more mature, but they're also learning about money in school. So they'll know that a $1 bill equals four quarters, and that their $3 allowance will buy a small tub of popcorn, for example.

For the same reason, I disagree that children should be buying birthday gifts for their friends by age 7 and they should be getting a seasonal clothing allowance by age 9. Kids should definitely take on those responsibilities, but I'd recommend waiting until middle school for the gifts and high school for the clothing allowance.

Of course, you know your own child and each family has its own values. One of my basic rules about allowance (a subject to which I devote an entire chapter in my book Raising Money Smart Kids) is that no single system will work for every family. Whatever system you choose, keep it simple. If you can't manage it, your kids won't be able to, either.

finance.yahoo.com

Make Sure Your Kids Live Better Than You

Seven out of 10 Americans believe they are living a better life than their parents, according to a new MONEY survey, and almost all of those who are moms and dads say they want to make sure their kids do the same. It's an integral part of the American dream--the notion that each generation should enjoy a higher standard of living than the one that came before it. And if you're a mom or dad, chances are you want that for your kids too.

But while your own parents and grandparents could pretty much take this outcome for granted, today's children face a far different economic landscape--one marked by stiffer global competition, an uncertain job market, easier credit, declining retirement benefits and a host of new financial products that make managing money on a day-to-day basis increasingly complex. The result: That rising standard of living is no longer the slam dunk that previous generations of Americans enjoyed.

Scary stuff, huh? Sure, but challenging too, with the potential for greater rewards--yes, that better life--for young people who are well equipped to navigate the new terrain. Whether your kids are toddlers or have toddlers of their own, you have the power to tilt the financial odds in their favor. These strategies will help.

Strategy No. 1: Explain the New Money Rules

Unlike you and your parents before you, kids today are growing up in a world in which technology has made money largely invisible. Want to buy something? Hand a piece of plastic to a cashier and the goods are yours. Need cash? Stick a card into a bank machine and out pops the dough that probably landed in your account through direct deposit of your paycheck. Since actual dollars change hands far less often these days, children don't get to learn by observation how financial transactions work, and parents miss out on everyday opportunities to teach the basics of managing money.

So it's up to Mom and Dad to explain what kids can't see with their own eyes, starting as soon as your son throws his first candy-demanding tantrum at the grocery store or your daughter asks for a magic money card like yours. "The earlier you begin talking to your children about money, the better chance you'll have to instill the values you think are important," says Philip Heckman, director of youth programs for the Credit Union National Association.

Instead of delivering formal lectures, casually drop lessons into your daily financial routines. When your preschooler accompanies you to the ATM, let him know that you're taking out money you earned at work and put in the bank for safekeeping. Verbalize your purchase considerations at the store, comparing prices and quality out loud. If you whip out the plastic to pay, explain that either the amount is being taken out of your bank account directly (if you are paying with a debit card) or you will get a bill in the mail that you must pay later (if it's a credit card). Add layers of detail and sophistication as your child gets older, explaining, for example, the concept of interest and late fees.

Look for ways to directly involve your child in financial activities, making a game of it if possible. When twins Jaime and Lisa Alpert were little, their mother Joni routinely armed the girls with coupons while shopping together for groceries, then sent them on scavenger hunts through the store to find the best deals. At checkout, she'd show her daughters the register tape so they could see how much they'd saved. And if Joni caught a scanner error and got a refund, she'd immediately hand the money to the kids. If you talk to a child about the importance of saving money, "it just goes in one ear and out the other," says Joni, a radio producer in Atlanta. But if you give them the money saved, she says, "it's a very powerful motivator."

These childhood shopping trips have made thriftiness so deeply ingrained for Jaime and Lisa, now 23, that they routinely and creatively search for bargains, no matter what they're buying. Case in point: When the girls graduated from different colleges on different weekends earlier this year, they didn't each buy graduation robes. Instead, they shared a single cap and gown, saving one last $30 on their college education.

Strategy No. 2: Fight the Spend Trend

Saving money, of course, has always been a virtue. But for 21st-century kids like the Alperts, who can no longer rely on company pensions and Social Security to fund their old age, it is an absolute necessity. Yet the temptation to spend, spend, spend has never been greater, with the average child viewing at least 20,000 commercials a year and credit-card issuers peddling plastic to consumers at ever-younger ages.

One way to counter today's gotta-have-it-now mentality is to make saving money a habit early on. Start with a traditional piggy bank, preferably a see-through container. A kindergartner may not be impressed by a bank balance statement, but he will intuitively understand that a large pile of coins is better than a small one and will get satisfaction from watching it grow. That's why New York City media director Vladimir Leveque, 32, gave his son Amir, 5, an empty five-gallon watercooler bottle that the boy is filling up with loose change that his dad brings home from work each night. When the bottle is full, Leveque will use the money to fund Amir's first savings account. "I'm introducing him to the ideology of saving," Leveque says.

As your child grows older, give her money of her own to manage (see "Making Allowances" at left). Then encourage her to regularly set some of it aside for long-term goals, like a coveted toy or, for a teenager, a cell phone. Help her plan how much she'll need to save, over what time period and, as extra incentive, consider matching a portion of what she socks away--an early introduction to the 401(k) concept. Open a savings account for her at the bank and suggest that she put some of her money there for safekeeping. The idea: "Make it easy to save and hard to spend," says Robert Manning, a finance professor at Rochester Institute of Technology.

Get the whole family involved in savings efforts too, as opportunities arise. For instance, when their three kids clamored for a pool in the backyard a few years ago, Sheri and John Hart of Dayton spearheaded a "pool plan" to save the necessary $3,500 for the aboveground model they wanted. Everyone agreed to make sacrifices: The family ate fewer meals out; John, 46, general counsel for the University of Dayton, moonlighted doing some extra legal work; Sheri, 43, postponed haircuts; the kids contributed some birthday money. If one of them whined to buy something on a shopping trip, "We just used the phrase 'pool plan,'" says John, "and they would remember why this was a looking trip and not a buying trip." When the pool was finally installed, "there was a sense of pride and accomplishment," says John. "The kids didn't miss what they gave up in order to achieve it." And the lesson appears to be sticking. His son Jordan, 17, recently used his own savings from afterschool and summer jobs to buy his first car.

Strategy No. 3: Hone Their Competitive Edge

The paternalistic, cradle-to-grave employer is so 20th century. Kids of the new millennium can expect to switch jobs several times in the course of a career, and perhaps industries as well, as technologies change, companies seek to keep costs down and global competition stiffens. While you can't know which jobs will be in demand a generation from now, you can count on workers with an enterprising and entrepreneurial bent to have an edge. "We've got to prepare our children to be flexible and self-sufficient to survive in an unpredictable job market and a changing economy," says Bonnie Drew, an executive at YoungBiz, which teaches business skills to young people.

Nurture your child's inner entrepreneur in the grade school years by helping him find odd jobs to do, like washing cars or raking yards. Encourage moneymaking projects such as a used-toy sale or a lemonade stand. They provide an opportunity, says Drew, to talk about various aspects of a business, including how to market it and set a price that will turn a profit.

Be sure also to make your own work visible, talking to your kids about your job, taking them with you to the office occasionally and maybe even giving them a task or two to do. Every couple of weeks or so, for example, Avon representative Poonkulali "Lee" Suresh pays her children Sathesh, 10, and Sabrina, 6, a few dollars an hour to help her set up tables, stamp her name on catalogues and sort out products. "This is the best way for them to understand that money does not come easily and you have to work for what you want," says Suresh, 38, who grew up in Sri Lanka and immigrated to the U.S. with her husband Suresh Kumaran, 42, six years ago.

Parents of teens with afterschool and summer jobs can give their kids a huge leg up by helping them to invest some of their earnings in a Roth IRA. Although it may seem ludicrously premature to think about retirement savings for a teen, the power of compounding over a half century or so makes the payoff huge: A young worker who contributes $4,000 a year from ages 14 to 18 and lets it ride at 8% for the next 50 years will amass a nest egg of more than $1.1 million, even if she never saves another dime (see "Millionaires in the Making," page 110).

Of course, you may discourage your child from ever working again if you insist that she lock away all her earnings for decades. A more practical approach, if you can afford it: Ask your child to put some of her money into the Roth, and fund the rest yourself, up to the total your child earned or the current maximum of $4,000, whichever is less.

Strategy No. 4: Reach Higher for Education

For past generations, graduating from a good college was an almost surefire means to success. With degrees increasingly commonplace, however, future generations may need to kick it up a notch to get the same higher-education advantage. According to the College Board, the median income of someone who graduates with a master's degree was $59,500 in 2003--nearly 20% more than the $49,900 earned by those with a four-year degree. A professional degree was worth $95,700, or 92% more.

And, yes, quality counts. A 2005 Cornell University study reports that students who attend better-rated colleges do indeed end up earning more than their counterparts at lesser institutions--and that the boost to income from attending higher-quality schools is big enough to compensate for their typically higher cost.

So try bumping up those contributions to your 529 plan (or get started now), and steel yourself to the idea of paying those tuition bills somewhat longer than you'd planned. The ultimate price tag, though, may be smaller than you think if you send your child to a top-rated public institution. In fact, the same study found that attending highly rated public colleges packed the same earnings punch as comparable private schools, making them the better investment, in the researcher's estimation.

Strategy No. 5: Give Big Kids a Hand, Too

Your role as a financial mentor doesn't necessarily end once your child is an adult. According to a University of Michigan study, people ages 25 to 34 who live on their own typically receive more than $14,000 in assistance from their parents. As the economic climate gets tougher, odds are your adult child could probably use a hand from you too.

Giving money to your kids can reduce the taxes your heirs may ultimately owe on your estate. (Only estates worth more than $1.5 million will be taxed this year, and that amount is due to rise over the next few years. The estate tax is scheduled to be eliminated in 2010, and then, unless the law is changed, it will be reinstated with an exemption of $1 million in 2011.) You can give as much as $11,000 to each child this year without paying a gift tax; couples can give up to $22,000.

If you're like most families, though, you're probably less concerned about estate planning than you are with simply providing the help your child needs now. To make sure a gift of money has the most impact, consider targeting it for a particular purpose--say, chipping in for the down payment on a first home or paying off the balance on a high-interest credit card. If you're attaching conditions, however, make your expectations clear. If you intend that the money be used for graduate school and you'd be unhappy if it were spent on a new car instead, say so in advance to avoid hard feelings, and give your child an opportunity to decline the gift.

Also consider that, however well intentioned your gifts may be, too much of a good thing can hurt your kids in the long run. Regular gifts may encourage a lifestyle your son can't really afford or send the message to your daughter that she can't take care of herself. "Parents should use their money to help their kids become independent," says Jon Gallo, co-author of Silver Spoon Kids: How Successful Parents Raise Responsible Children, "not to maintain their dependence."

In fact, the single best step you can take to help your kids prosper as adults won't cost you a dime: Be a good role model. After all, children learn most of what they know by observation. So if you rely on plastic to keep up with the Joneses and never manage to save a dime, don't be surprised if your children grow up to do the same, no matter how much you preach to them about living within their means. "It's like parents telling their kids not to smoke and then lighting up a pack a day," says financial planner Kevin McKinley, author of Make Your Kid a Millionaire. In the end, there's no substitute for setting the right example. If you haven't exactly been a paragon of financial virtue lately, there's no time like the present to start.

finance.yahoo.com

The Top Five Financial Mistakes Parents Make

Saving for college is often a priority for parents -- as it should be. But saving for school doesn't give moms and dads license to neglect the rest of their financial goals, advisers say.

According to AllianceBernstein Investment's "College Savings Crunch," a recent report that measured college saving trends, 70% of families surveyed don't have a plan that takes into account all of their financial goals. AllianceBernstein is a global asset-management firm based in New York.

Melissa Osuch has seen first-hand proof of those findings.

"In talking to fellow moms and fellow parents, I realized they had no idea what their priorities should be and where they should start. A lot of times they do nothing," said Osuch, a Glenview-based financial planner and educator with Strategic Advisors of Illinois. When they do take action, "they focus so much on college planning that they completely ignore retirement planning."

And the immediate, everyday needs and desires of their families often get more attention than college saving. The AllianceBernstein survey found that of families intending to fund at least part of their children's education, 58% spent more on eating out or ordering take-out food than saving for college in the past year, while 49% spent more on vacations.

For Vicky de los Reyes, a 38-year-old who lives in the Chicago suburb of Hawthorn Woods, buying a house was the priority when her oldest daughter was young. She and her husband began saving for all their children's college expenses around the time her oldest turned 6.

Even though the couple began saving for their daughter's education later than they would have liked, they have a catch-up strategy: When their youngest child no longer needs day care, the money saved will be put into their oldest child's college fund.

To help parents prioritize their finances, Osuch has a formula: The most important component is protection and insurance, followed by establishing an emergency fund, saving for retirement and then, finally, socking away money for college.

Rick Brooks, a financial planner with Solana Beach, Calif.-based Blankinship & Foster, has a similar approach.

"The way we tend to look at financial planning is first covering the risks," he said. The young families he works with are typically successful professionals in their 30s and 40s with high educational degrees on their resumes -- yet still are often left scratching their heads when it comes to creating a family financial plan.

Below are five common financial mistakes advisers often see parents make:

1. Buying the wrong life insurance -- or none at all

It doesn't cost a bundle for parents in their 20s or 30s to purchase life insurance. But it may mean the world to that parent's bundle of joy. A working parent may have life insurance through an employer. Do the math and make sure it's enough.

According to Osuch, there are two ways someone can estimate how much life insurance to buy: Either multiply income by eight or multiply income by six and then add in one-time expenses such as paying off a mortgage or paying for college. It's also possible to estimate how much is needed by considering only expenses -- both one-time costs and living expenses for several years -- instead of income, Brooks said.

Both stress, however, that each situation is unique and it's best to consult with a professional on how much insurance is necessary.

Also give special consideration to the stay-at-home parent, Osuch said. Often a parent not earning an income figures he or she doesn't need life insurance. But large child-care expenses could appear if a stay-at-home parent dies, she said.

To figure how much a stay-at-home parent needs in life insurance, estimate the costs of replacing the work that the parent does, she said. The figure will likely vary depending on the ages of the family's children.

Having enough life insurance is especially important for young families to consider, especially since they are more likely to have a tighter cash flow, said Cicily Maton, a financial planner and partner of Chicago-based Aequus Wealth Management Resources.

At the age of 28, Osuch bought herself a 30-year, $250,000 term policy for $165 a year. Mortality tables have changed since 1998 when she bought the policy due to increased life expectancy, thus lowering the rates even more, she said.

2. Ignoring the need for disability insurance

Maybe even more important than life insurance is for parents to have disability insurance, Osuch said. "If you get into a car crash, there's more of a chance you're going to be injured than actually die from that," she said. "Life insurance isn't going to help you out there."

Luckily, that expense also can be modest; Osuch recently sold a 36-year-old a disability insurance policy for $34 a month.

When deciding how much insurance to buy, parents should aim to replace at least 60% of their income. Disability insurance most often is paid out on a monthly basis.

As an aside, don't skimp on liability insurance, Brooks said. Inadequate auto and home coverage is a common mistake across his entire client base.

3. Postponing a will

Young parents often feel healthy and don't think they need to prepare for the inevitable by drafting a will. But it's a task they probably shouldn't put off.

"Younger people don't have death on their minds," Maton said, at least not to the same extent that older clients do. But it takes only one related horror story about the consequences of a parent dying without a will to change someone's perspective, she said.

Without a will, the state decides who cares for the deceased's children and who manages their finances. When parents put their wishes in writing, they make those decisions instead.

If finding the money for attorney fees is the biggest hurdle, at least have a conversation with aunts, uncles and grandparents regarding who will take responsibly of the children in the event that a parental death occurs, Brooks said. And put those decisions in writing.

"If money is that tight, at least spend the 10, 15 bucks at the stationary store and fill in the blanks," he said, referring to premade will documents. Remember to have the document notarized, he added.

4. Forgetting to save for retirement

"When you're young and you have kids, retirement seems so out of reach," Osuch said. "It's something you can do tomorrow."

But delaying retirement saving makes it harder for a nest egg to grow. And remember college savings can be supplemented with student loans. "There are a lot of ways to finance college, but no one is going to give you a loan for retirement," she said.

Neglecting retirement savings also doesn't do any favors for grown children, who could be faced with the burden of financing their parents late in life, Maton said. At the very least, people should put as much money in their 401(k) plans as their companies will match, Osuch advises.

5. Putting off saving for college

Save for college while saving for retirement, Osuch said; starting early allows more time for the fund to grow. But dedicate fewer dollars to school than to the retirement fund.

If, for instance, someone has $100 a month to save, he or she should put $75 into some sort of retirement plan and $25 into college savings, she said. "Most people do the opposite or don't put anything into retirement at all."

But even though financial aid can supplement college savings, don't count on receiving aid that doesn't need to be paid back.

"Fifty-six percent of financial aid is in the form of loans," said Jennifer DeLong, director of college savings plans for AllianceBernstein. "People hear 'financial aid' and they think 'free money.'"

And although it's easy for proud parents to picture their prodigy as a star athlete or coveted artist, don't plan on them financing their entire education with scholarship money.

In the AllianceBernstein study, two-thirds of financial aid administrators said they believe that scholarship and grant dollars are less available for the average family today than they have been in the past; 92% said that parents overestimate the amount of scholarship and grant money their children will receive.

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What is a good amount of money to give to a 2 year old for her birthday?

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Q:
What is a good amount of money to give to a 2 year old for her birthday?

A:
Oh my goodness that's lot of money! lol! I have a 2 year old daughter and the most that I would ever expect anyone to spend on her would be $30 or less - anything more than that is kinda unneccessary. They are amused by inexpensive toys and stuff at that age - take full advantage of it while it lasts because pretty soon they'll be into the more expensive stuff!

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