by KYW's Salil Gutt

The heart of personal financial planning for families is allocating resources to priorities. Money comes in and it goes out. The secret is to ensure it is going out to areas where it does the most long term good.

Here are my recommendations for a short list as to how a family should ideally prioritize their money goals.

Most important. Focus on paying off all debt, including the mortgages, by the time your oldest child is ready for college. Equally important with debt reduction is to max out contributions to retirement plans. I favor tax deductible rather than Roth type retirement plans. Take the tax savings today where the money does you more good.

Also. Don't waste money buying expensive cash value insurance. Term insurance bought online is the way to go. Be sure it is enough to cover debts and $250,000 per child.

Finally. Don't actively save for children's educations now. Building up too much money in their names may inadvertently disqualify them from financial aid and grants. Direct this money to debt reduction and retirement plans.