"My son is graduating this year, but we have nothing to give him for college," said the 36-year-old mother of six.

Like many Hawai'i families, Kehau and her husband, Jeffrey, have been busy making a living and raising their children. Time flew — and before they knew it, 17-year-old Joshua was graduating from Pearl City High School. He wants to attend the University of Hawai'i or Hawai'i Pacific University, but the Pongs can't spare much money.

"It seems like we're struggling just to pay bills," said Jeffrey Pong, a 36-year-old electrician at Wasa Electric.

The Pong family earns about $83,000 a year, mostly from the father's job. They owe $7,000 on credit cards and $237,000 for a first and second mortgage on their three-bedroom, two-bath home. Since they bought near the top, they don't have much equity in their house.

They took a second mortgage out in 1997 mainly to buy a van for the family and a truck for Jeffrey. At times, they used the credit card to pay for groceries and other necessities. Jeffrey has a pension through his company. So does Kehau, a health aide at Pearl Harbor Elementary School, but it won't be much.

Kehau switched from being a service administrator at Heide & Cook to this lower-paying job because the schedule allows her to pick up and drop off their kids, which saves on childcare costs. As part of the school system, she gets summers off so she can be a full-time mom for part of the year.

"You make a choice for a better quality of life," Kehau said.

So how can the Pongs stop living from paycheck to paycheck and have extra money to pay for their kids' college plus boost their retirement savings?

First, they have to tweak their priorities, said Michael Iraha, a certified financial planner in downtown Honolulu. The 'Ewa Beach couple needs to protect against the loss of the main breadwinner and begin setting aside some money for retirement. After they have started saving for these goals, then any extra money can be put toward their children's college education, Iraha said.

"I know it may be hard to hear, especially for you, Kehau," Iraha said. "But the kids can work and go to school. Their education will happen."

Kehau replies, "as a mother, you want it the other way around. It's really the local style. People put money into their kids."

The most important thing to do is get Jeffrey life and long-term disability insurance, Iraha said.

"The real risk is that he's not covered," the planner said. "Think about this. He doesn't come home tomorrow. Not only are you going to miss your husband and father, but the $67,000 a year that he earns."

Iraha said they should take out at least $250,000 in term life insurance for 20 years for Jeffrey, which would pay off the mortgage. Ideally, the couple should take out more insurance, after figuring out how much additional money Kehau Pong would need so she won't have to struggle as a single mom. They should also look into long-term disability coverage for the husband, which his work does not provide.

Asked where they could cut back to buy insurance, the Pongs said they're not big spenders and they already pack lunches to work. But Jeffrey Pong acknowledged that he could save a lot more by giving up the $5 pack of cigarettes he smokes every day. That would save about $150 a month.

The Pongs also are consolidating and refinancing their mortgages and expect to save $300 a month.

As for taxes, they pay a minimal amount, with six dependents and a house as a tax shelter, the planner said. They could claim more deductions to free up money immediately instead of getting refunds every year, but Jeffrey doesn't like the idea. He prefers to get a check instead of worrying about whether they'll have to pay taxes if he does particularly well that year.

Iraha encouraged Kehau to start putting money into the state Deferred Compensation Plan, which is similar to a 401(k) retirement program. Since her income is modest, she doesn't expect to get much from the state pension fund, the ERS.

As for saving for college, "it's too late for Joshua but not for the rest of your kids," Iraha said. Instead, Joshua could apply for financial aid and scholarships, such as one from Kamehameha Schools.

The planner explored several educational options, including the Coverdell Education Savings Account and state 529 plans.

Coverdell allows a maximum investment of $2,000 a year per child if the modified adjusted gross income is less than $190,000 for married couples filing jointly or $95,000 for singles. Money accumulated and earnings can be withdrawn tax free if used for elementary, high school and college expenses with restrictions.

Hawai'i offers a 529 plan called TuitionEdge, where parents can invest money for their kids' education and money is withdrawn tax free. The maximum allowed in the account is $297,000, which may be adjusted over time as education costs rise. Money can be used at U.S. universities, community colleges, vocational or technical schools and many foreign institutions. The minimum investment is $15. Hawai'i residents may enroll in other states' 529 plans, whose restrictions and benefits will differ.

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