"I had to step up and provide," says Marcel Knox, who is no stranger to sacrifice. And that's no small feat for the father of a blended family of six children ranging in age from 4 to 20 years old. Marcel, 45, and his wife, Judith, 38, pay $980 a month for their two-bedroom, Yonkers, New York, apartment in which they live with their three children. In addition, Marcel also helps financially support three children from a previous relationship. Taking care of a big family hasn't been easy. "I'm a super penny-pincher," Marcel says. You won't find this crew regularly dining at restaurants. Instead, you might find Marcel buying in bulk at Costco, or Judith shopping at the supermarket with coupons in hand. A daily money-saver is a brown bag lunch for everyone. Marcel and Judith are also more likely to have a quiet evening at home than go out to a party. "Frivolity is history," Marcel says. Marcel earns $82,000 as an associate project manager with MTA New York City Transit. Judith worked on Wall Street until she became pregnant with their 6-year-old daughter. During her time as a stay-at-home mom, Judith received her nursing degree, and late last year she began earning $65,000 working as a registered nurse. Her salary couldn't have come soon enough. Some of the family's financial burdens are lifting now that there are two incomes. But it hasn't all been easy. "It's stressful taking care of the three kids, getting them ready for school, [helping with] homework, making dinner, and taking them to activities now that I'm working full time," Judith says. Financially, it's time to play catch-up. Although Marcel will be eligible for a pension through a defined benefit plan, he doesn't have any retirement savings -- he says his income had to go toward running the household. Upon retirement, he'll be eligible for an annual payment of 2% of his final average salary multiplied by his years of service, up to 30 years. With Judith working, Marcel wants to eventually contribute 12% of his salary to the company's retirement plan, but for now he'll settle for socking away whatever he can. The Knoxes have $28,000 in a money market account, $9,000 in a checking account, and $3,000 in a brokerage account. Judith has $30,000 in student loan debt. Fortunately, over the past decade, Marcel managed to pay off $15,000 in student loans and $5,000 in credit card debt. He and Judith decided to give up credit cards three years ago so that they could keep their debt under control. Marcel doesn't have life insurance because he wanted to be conservative with spending, but he does have disability coverage from his employer. Judith has $50,000 in life insurance. What's the couple's most immediate concern? "Saving to buy a house," Judith quickly answers. "Our 12-year-old son needs a room of his own," Marcel adds. However, Yonkers may not be where the family finds its future home. They want to purchase a three- to four-bedroom house in the $350,000 to $400,000 range, and they will likely explore the New Jersey market. In the meantime, financial education is emphasized in the Knox household. The children have banks at home where they save coins provided weekly by Judith and Marcel. After meeting with a financial adviser, Judith and Marcel are hopeful that they can save for their children's educations, their retirement, a house, and a few extras, such as the occasional meal out. "I don't feel as desperate -- a house is definitely a real possibility," Marcel says. THE ADVICE Certified financial planner Pierre Dunagan of the Dunagan Group in Chicago discussed the family's finances with Marcel. What's working? "They accomplished goals together," Dunagan says. He applauds the couple for their discipline. His advice: Prepare for retirement. Though Marcel is in his 40s, it's not too late to save. Dunagan found that the couple is receiving, on average, tax refunds of about $4,400 a year. "Instead of lending their money to the government for a year, they should adjust their withholdings so they can use that money for retirement savings," he says. For starters, they should explore an S&P 500 index fund inside of Marcel's retirement plan. Unfortunately, Marcel's company does not match contributions and Judith's company does not offer a retirement plan. Step up the timetable for home purchase. Judith has started saving $2,000 a month toward the purchase of a new home, while Marcel pays for day-to-day expenses. Right now, the couple has $28,000 in a money market account earning 4.3%. Given the market, they might be able to get a deal on a house sooner than they think. Dunagan says the Knoxes should begin looking to purchase a home, with a 5% down payment. However, as soon as they make a purchase, they should shift their focus to retirement savings. Increase life insurance protection. The Knoxes should each purchase term life insurance for at least $500,000. After they close on their home, this should be increased to $1 million each. Term life insurance is ideal for them, because it will give them sufficient coverage at a price they can afford. According to life insurance company IntelliQuote, such coverage would cost the couple approximately $80 to $100 a month. "They need this level of coverage until the last child completes college," Dunagan says. The couple plans to draft wills this year, Marcel says. Dunagan says the couple should take care of that sooner rather than later. They should also make sure their disability insurance is adequate for their needs. Get a credit card. Even though Marcel doesn't like credit cards, it's not a good idea for the couple to be without them. The couple will want a strong credit rating when it comes time to purchase their home. Having no credit can hurt as much as having bad credit. The Knoxes should be sure to pay the balance in full each month to build a strong credit history. Contribute to college costs. It's advisable to begin studying up on college scholarship opportunities for the children. The college tab for all the children would be far too great for the couple to completely tackle on their own, particularly so late in the savings game. Once they have closed on their new home, they should strive to put aside $800 monthly toward college costs. Financial Snapshot: KNOX FAMILY Yonkers, NY HOUSEHOLD INCOME Gross Income $147,000 ASSETS Money market account $28,000 Checking account 9,000 2000 Nissan Quest minivan* 5,905 Brokerage account 3,000 Total $45,905 LIABILITIES Child support $54,900 Student loans (Judith) 30,000 Total $84,900 NET WORTH -$38,995 *ACCORDING TO KELLEY BLUE BOOK