We have four children attending college and one on a mission. The time for financially preparing for these commitments is past.

We started when they were very young with the following:- Our children had their own savings accounts. Until they were 16 and had after-school jobs, we watched their deposits dollar for dollar.

- We encouraged them to financially prepare themselves for mission and school. From the time our children were little, we would match whatever money they put in their savings accounts, and that money was to be used solely for missions and education. This condition lasted until they were 16, because at that time they could get part-time jobs and make extra money.

We encouraged them to save for their own missions, as well as for education. This not only helped them learn personal responsibility, but also helped them spiritually because they sacrificed for their own missions.

- We sometimes gave them savings bonds for birthdays and at Christmas. You can purchase them for as little as $25, and they are tax-free for education. Our children knew we expected them to pay books and tuition, but we would cover living expenses as much as possible.

- Our children obtained a certificate of deposit when a fairly large sum, such as $600, was accumulated in savings. This certificate pays a higher interest than regular savings.

In addition, I made sure our children each opened a checking account at the beginning of their senior year in high school so they would be familiar with how it works before leaving home.

In addition, scholarships help a lot and are available to young people who put forth the effort of obtaining one - both in getting good grades and in being willing to research to find available scholarships for which to apply. - Elaine E. Ward, Wilmington, Del.

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What we did:

Mission account

My parents did two very important things to help me financially prepare for a mission. First, they opened a bank account in my name when I was just a baby and contributed a small amount of each paycheck to my account. Second, my parents taught me to put one half of my allowance, paper route earnings and earnings from other part-time and summer jobs, into my mission account.

Without my knowledge, my parents were able to fit the cost of my mission into their budget. When I returned home from Japan, they gave me what was still in my mission account to help pay for college.

I now have four small children of my own. Shortly after each of them was born, I set up a bank account in their names and withheld a little from my paychecks to put into their mission fund. My spouse and I hope to instill in them a desire to serve a mission and to save half of all they earn toward that end. As my parents did for me, I hope to be able to fit my children's mission expenses into my own budget when the time comes. By helping them save now for missions and college later, hopefully we can teach them the importance of missionary work and education. - Bill Herlin, Frisco, Texas

Tithes, offerings

This year I have had the opportunity to send my son and my daughter on missions. The best financial preparation any family can have is to always pay a full tithing and a generous fast offering. The Lord has blessed me in many ways to be able to support my missionaries, even as a single mother. Remember to put the Lord first in any financial plan. - Carol Beck, Salt Lake City, Utah

Taught to work, save

When our two sons, Russell and Scott, were very young, we encouraged them by telling them they would grow up to be missionaries. We made it a positive thing so that they also wanted to be missionaries. When they were baptized at 8 years old, we established a savings account for them that was to be contributed to regularly. As parents, we contributed on a regular basis, but more important, our sons started saving for their own missions. When they were 10 and 12 years old, we helped them start a curb number painting business through which they earned their own money to contribute, along with paying tithing. A year or so later, we helped them start a lawn mowing business. Later, when we moved to California, our sons continued their lawn business and expanded to cutting weeds.

They learned some life-benefiting experiences through the years. They learned how to work, how to be innovative, how to pay tithing and how to be entrepreneurs.

This resulted in them paying for their own missions. This training has continued to serve them well as they worked their way through BYU to graduate with their master's degrees in engineering. - Blaine Cutler, Morgan Hill, Calif.

Start young

Starting when my oldest child was 5 and the youngest was about 18 months, I put $50 a month in a savings account for each of my three children. I continued this practice until each child started college.

My children were encouraged to put half of everything they earned from paper routes, baby-sitting, moving pipe, working as life guards, etc., after tithing, into these savings accounts. This money was not be touched for any reason until college and missions.

Both of my sons and my daughter served missions and all three graduated from BYU without incurring debt. These things worked for us and may be of benefit to others. - Ellen Barzee, Rexburg, Idaho

Wise investments

Zero coupon treasury bonds are excellent investments for missions and education funds. At this time, one can obtain approximately a 7 percent yield on a 15-year zero coupon treasury bond. This is a 75 percent better return than from a 4 percent EE savings bond. Growth stock mutual funds are also excellent investments. The minimum investment is as low as $100 and can be as high as $2,500. Subsequent investments can be as low as $25. Grandparents and other relatives can invest for their grandchildren and relatives for their missions and college funds instead of giving consumer gifts.

New parents should apply for a Social Security number immediately. One of the parents, or perhaps a grandparent, is the custodian of the investments for each child until the child is 18 or 21, depending on the state of residence when the account is opened. This account is a Uniform Gifts to Minors Account and has special IRS tax benefits. The investments can be made through any bank or brokerage institution. - Ellen S. Olsen, Denver, Colo.

Compounded interest

A couple of years ago, I became a representative with a company oriented toward helping middle America understand financial matters. I have learned the power of compounded interest in mutual funds, for long-term plans, at least five to six years prior to the date the money will be used (the longer the better). The accounts to which I am referring are called "custodial accounts" for a parent or grandparent and are a convenient way to invest for your children's or grandchildren's future education and/

or missions and at the same time earn a tax break.

Any investing company will give you more information about such accounts. You really need to shop around for the best history rates and fund managers for each company. - Enrique Ramirez, Palmdale, Calif.

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How to checklist:

1. Pay tithes, offerings; put the Lord first in financial plan.

2. Start when children are young; open bank accounts.

3. Help them to work, save money from part-time, odd jobs.

4. Invest wisely; learn about interest rates, tax breaks.

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Write to us:

Oct. 19 "How to support your wife as she serves as an auxiliary leader."

Oct. 26 "How to be more sensitive to those around you in different marital and family circumstances."

Nov. 2 "How to take responsibility for your own happiness."

Nov. 9 "How to find joy `in the morning.' "

Nov. 16 "How to instill spirit of Thanksgiving in children."

Nov. 23 "How to prepare for the arrival of first child."

Had any good experiences or practical success in any of the above subjects? Share them with our readers in about 100-150 words. Write the "How-to" editor, Church News, P.O. Box 1257, Salt Lake City, Utah 84110, send fax to (801) 237-2121 or use internet E-mail: Churchnews@desnews.com. Please include a name and phone number. Contributions may be edited or excerpted and will not be returned. Due to limited space, some contributions may not be used; those used should not be regarded as official Church doctrine or policy. Material must be received at least 12 days before publication date.