Of course, the earlier you start saving the better. However, I believe that some periods of life are better suited for saving than are others. The Crucial Decade it is not based on your age, but the age of your children (if you don’t have children, you are probably better rested than I am and this blog post probably won’t mean much to you).

A 2007 report by the US Department of Agriculture claims that the amount of money it takes to raise a child from birth to age 17 doesn’t fluctuate much per year. They estimate that families earning between $45,800 and $77,100 annually will spend $11,000 to $12,000 per year until age 17 for a total of $204,060. I am sure this type of information plays an important role in determining child support and foster care payments. However, as a practical family budgeter, I don’t believe that a child’s 13th year is as costly as his or her 3rd.

As all parents know, babies are expensive. Medical bills, childcare costs, time off work and baby supplies all add up. This is especially true if one spouse decides to leave their job to care for the children. Older children are also costly. Cars, college, and weddings are some of the larger ticket items you can look forward to. And this is assuming they don’t move back in with you!

Fortunately, I have discovered that there is a period of time between where the childcare costs end and the college tuition begins (even the costs of sports playing, electronic loving tweens can’t compete with those big ticket items). This is your big chance! According to the National Association of Child Care Resource and Referral Agencies, parents of school-age children pay up to $8,600 a year for part-time care. When this ends or at least diminishes, start saving the amount you were paying in childcare into a savings account to prepare for retirement or the tuition that is looming on the horizon.

Don’t let this Crucial Decade pass you by or you’ll find yourself playing catch-up in your golden years.

Respondents to a new nationwide survey conducted by Money Management International think that parents should save more to help their children afford college. In fact, nearly half (47%) said that parents should be saving more. Echoing this thinking, nearly as many respondents (43%) think that parents should establish and fund a 529 plan. Rounding out the top three, many respondents (41%) think that students should be responsible for shouldering more of the financial burden.

The focus on saving seems to mirror the changes in national financial perceptions and habits. According to a New York Times article in June 2009: “The personal saving rate, which dipped below zero during the housingboom as Americans tapped home equity loans and other easy lines of credit, rose to 6.9 percent in May, the Commerce Department reported. That was its highest point since December 1993.”

Other less popular ideas for funding an education included dipping into regular savings (19%), taking out a personal loan or use credit cards (17%), taking a second job (12%), taking a second mortgage or a home equity loan (8%), borrowing against retirement savings (6%), dipping into retirement savings (5%), and borrowing against insurance policies (4%). (Note: respondents could select more than one option.)

Several respondents made very specific suggestions which are worth noting:

-”Encourage academic excellence early.”
-”Help when possible, but teach children about financial responsibility at an early
age and encourage them to save, too.”
-”Instead of saving for college, use that college money to pay off their mortgage
sooner. Then use what they would be paying for their mortgage and help their
children with college.”
-”My children join military for schooling purposes. I have poor credit and no
savings live paycheck to paycheck.”
-”Teach their kids they are NOT going to get everything handed to them, as I was
taught; I paid for my college, and so did one of my kids that just graduated. All on
their own.”
-”Teach them to be independent at an early age and help them do for themselves.”
-”Think government should pay for schooling cause without workers there will be
no taxes and no one to pay them in the future.”

For more about college and credit, check out:

Economy calls for a change in college plans
Earn an “A” in personal finance this semester
New & old ways to pay for an education
Money management for the first time adult

Most kids have some idea of what they want to be when the grow-up. Unfortunately, landing a position as a pirate or princess isn’t always easy. On the other hand, one thing that we all get to be when we grow up—whether we like it or not—is a consumer. While being a consumer isn’t as glamorous as being a Superhero, it is important and does require a lot of training.

Learning to be a good consumer is important as it offers a basis for financial success; but many American students complete 12 years of schooling in which little or no attention is paid to economics. As a result, many consumers find themselves on their own to learn from the school of hard knocks. In fact, Americans currently owe more than $2.5 trillion in non-mortgage debt and hold little in the way of savings.

Fortunately, there are four very basic tips for wise money management:

1. Live beneath your means. Learn the difference between needs and wants; experts agree that one key to happiness to be happy with what you already have.

2. Expect the unexpected. No one plans to lose a job or suffer from illness. Being prepared for life’s setbacks will give you peace of mind and help you to survive financially if the worst should happen.

3. Plan for tomorrow. Make it a habit to pay yourself first. The earlier you start the better—as they say, the eighth wonder of the world is compound interest.

4. Keep credit under control. The average household owes more than $8,000 in credit card debt. Smart consumers use credit as a tool of convenience, rather than an extension of their income.

Finally, know when to seek help.  After all, even the Batman couldn’t do his job without his trusty sidekick.