Yes, you can have the joy of raising children without going broke -- although it will not be easy. We live in a very materialistic society, it is incumbent upon all of us to teach our children well. They will feel the tug of peer pressure, the "need" to have $100 Air Jordans. If you can teach them money literacy early, you will have gone a long way toward saving them years of financial and emotional grief.

Kids learn best by example. If they see you buying new shoes every month, they will want new shoes. If you get the newest computer every six months, they will want the new Nintendo. If they see you being smart with a dollar, they just might learn that, too.

There are scores of ways to have fun with your kids, teach them positive values, and still save money. What is your favorite Halloween costume of all time? It is probably safe to say that it was not some prefab, storebought costume, but rather a homemade, creative masterpiece. Keep that in mind as you strive to give your kids the best without teaching them the worst.

Art projects are a fine example. Children love to make art, to express themselves with pictures when words may be hard to find. Crayons are great for the little ones, and most newspapers sell newspaper end-rolls for a song just to get rid of it. Add some scissors, glitter, string, markers, beads, and buttons, and you have an afternoon of relative peace and quiet. Why not keep all the packaging you throw away every week? Anything can be a part of a work of art.

Other great, inexpensive activities include

- Cooking and baking. By incorporating children into your kitchen activities, you kill two birds with one stone. They play (for free), and you get some work done.

- Music. Teaching children to love music is a reward unto itself. Whether it be listening to Mozart on CD, playing the flute, or drumming that wooden spoon, music can be a compelling, wonderful, affordable activity.

- Reading. If children learn early enough, they can't stop. That you can check out endless books for free from the library makes reading that much better. Books can also be purchased cheaply at yard sales, book fairs, and church bazaars. Have children write their own books. Read to your children every day.

- Computer. If you have a home computer, the possibilities are endless. CDs make learning fun and can often be found in the bargain bin at the computer store for a few dollars. The Internet is a vast resource of fun and learning. Install an inexpensive blocking program, and let them go explore the world.

- Sports. Sports can usually be played for the cost of a football, basketball, or Frisbee.

- Games. They need not be expensive. Puppets can be made out of lunch bags. Use old clothes for dress-up. Puzzles are pretty cheap.

- Money. Help them start a business. The kids can solicit neighbors for a summer pet-sitting or pet-washing service. They can wash cars or sell lemonade. They can baby-sit.