Answer: If your nephew wants to try to sue his mother, or file a criminal complaint against her, he should talk to an attorney about his options. Money that’s placed in a trust or custodial account for a child’s benefit is no longer the parent’s to take, although too many parents don’t understand this and grab at an easy source of funds when money gets tight.

In the more likely case that he doesn’t want to take formal action against his mother, he could simply ask her to return the money she took. His chances of success may not be great — people who steal from their kids may not be eager to make amends — but he likely stands no chance if he doesn’t ask.

Answer: You need to have the conversation you probably should have initiated a few years ago, before she started the college application process. She must understand that what she wants and what you can afford to provide for her may be two very different things.

Start by applying for financial aid at the colleges that have accepted her (let’s hope she applied to more than one). The “estimated family contribution” calculator at FinAid.org can give you a rough idea of what you’ll be expected to pay, but the actual package you’re offered can vary somewhat depending on how much the school wants your daughter to attend. You may want to invest in some books to help you understand the process, such as the Princeton Review’s “Paying for College Without Going Broke, 2012 Edition” and education expert Lynn O’Shaughnessy’s workbook, “Shrinking the Cost of College,” available at thecollegesolution.com.

Once you have the financial aid offers you can see which schools may be within your grasp and which are too expensive. Some schools encourage students and their parents to borrow heavily to attend, but that can lead to financial disaster — particularly since she has so many years of schooling ahead. Your daughter should try to limit her borrowing for her undergraduate education to what’s available through the federal student loan program (typically $33,000, total) and avoid private student loans, which have fewer consumer protections.

You as a parent can borrow through the federal PLUS program, but it’s easy to go overboard. The PLUS program will lend you up to the full cost of your daughter’s education, but the loan payments could be overwhelming and could prevent you from retiring. Student loan debt is almost impossible to discharge in bankruptcy, so you should be cautious about taking it on.

Your daughter should be able to cobble together an affordable education if she’s flexible about where she gets her undergraduate degree. Beyond that, she should know that the military and the National Health Service Corps pay for medical school in exchange for several years of service.

Answer: The “free money” you know is out there may not be the answer to your problems.

Yes, there are scholarships your boy might get to help pay for his education. But if he receives any financial aid from the university, those scholarships may reduce the amount he gets in grants — another form of financial aid that doesn’t have to be paid back.

If, on the other hand, he doesn’t get any grants, the scholarships could reduce the amount of loans he’d otherwise need to take out. He can start his search for scholarships at FastWeb.com.

You definitely should apply for financial aid from the university, if you haven’t already. (FinAid.org’s estimated family contribution calculator can give you a rough idea of how much you’ll be expected to chip in, although the school’s actual package may differ somewhat.)

Then take a hard look at what this education is going to cost you. You may not be able to afford it. If you would have to stint on your retirement, or your son would have to borrow more than the federal student loan limits ($5,500 for his freshman year), you probably need to look for other alternatives.

One option is for your son to live at home and attend a two-year college to get some of his requirements out of the way. Another is an in-state school, or one with a golf team that wants him badly enough to offer a better merit-based package of aid. FinAid.org offers resources and ideas for getting an affordable education, as does college expert Lynn O’Shaughnessy’s workbook, “Shrinking the Cost of College,” available on her website, TheCollegeSolution.com.

What you don’t want to do is bankrupt yourself, or consign yourself or your son to huge student loan debts. No education is worth a lifetime of debt, particularly when other options are available (and you have two other kids to educate).

Answer: You can, but why would you want to?

The big benefit to a 529 plan is that your returns can grow tax-free. That’s a boon for parents in higher tax brackets contributing for young children, since their money has years to grow and they can put at least some of their cash into riskier assets, such as stocks.

If you need the money within two years, though, it should be in a cash account that won’t earn much. (The average money market fund pays around 0.02% right now.) You wouldn’t be getting any real growth, so the tax benefit of a 529 plan is minuscule. What you would get are restrictions on how you use the money and possible complications for your tax returns. If you want to use education tax credits, for example, you won’t be able to apply those on expenses you’ve paid with a 529 withdrawal.

A simple FDIC-insured savings account — perhaps at an online bank that pays around 1% — is probably the better way to go.

Answer: You don’t say how much is in your husband’s 401(k), but a 6% contribution rate when you’re in your late 40s is unlikely to generate a big-enough nest egg to retire. Boosting that contribution rate should be your priority, and you should consider contributing to a Roth IRA for each of you.

Likewise, saving anything for your child’s college education is smart, but $100 a month won’t get you far. Just for comparison, consider that parents of newborns need to save around $600 a month to pay the full cost of a public college. Those who start later or want to cover a private college have to contribute much more.

Most families aren’t able to save that much, so the next best thing is to simply save what you can — after you’re fully on track with your retirement savings.

You shouldn’t prioritize paying down your relatively low-rate debts over these two far more important goals. But you may want to consider refinancing your mortgage to dramatically lower your rate and perhaps free up more cash for your goals. Just try to make sure the loan will be paid off by the time you plan to retire. A 15-year loan, in other words, might make more sense than refinancing into another 30-year mortgage.

I’ve run across 3 pretty cool infographics recently that describe what you need to know about three important topics:

How to Dispute a Credit Card Charge (from CreditDonkey)

529 Plans: The Antidote to College Sticker Shock (from Mint)

Education Earnings: Economic Boon or Bubble? (from CreditDonkey, again; probably should have been titled “Is a college education worthwhile?”)

It’s worth spending time with each of these graphics–you’ll emerge smarter for the experience. The only caveat I’d add is about Mint’s effort: it’s not just the cost of college that will give you sticker shock. The amounts you’re supposed to save to cover 100% of the bill are pretty gargantuan, even if you start with a newborn and aim only to pay for public college (over $600 a month). So remember that you don’t have to try to save for the whole cost and that anything you do save will help reduce your child’s future debt.

Okay, now for the weird graphic…it’s a J.P. Morgan graphic explaining the European crisis using Lego figures. (Clicking on the link that says “Via Reuters” will download the full graphic, complete with explanations, since the legend provided isn’t really detailed enough to figure out what’s going on.) I’m not sure it’s possible to create a graphic that would explain this particular crisis simply, but this one sure isn’t it.

Here are just a few of the issues we tackled, with some follow-up information since you can only go into so much depth on radio:

Eden has a one-year-old baby and wants to save for college. She’s doing so using U.S. savings bonds and asked me if that was a good strategy. I had to tell her it really wasn’t. Interest rates are so low these days on savings bonds that you’re really losing ground when you invest in them. A better bet would be a 529 college savings plan, which receives favorable treatment from financial aid formulas and allows your money to grow tax-free for college. Eden wanted to retain control of the money, which a 529 allows you to do. You can switch beneficiaries to another relative if your child doesn’t go to college, or use the money yourself, or simply withdraw it and pay a 10% federal penalty on any earnings (not the whole withdrawal). For more, read “How to save for your kid’s college.”

David lost two properties in 2008, one to a short sale and one to a foreclosure, and received 1099s tax forms for the difference between what the properties sold for and what his mortgage balances were. He asked if he could escape this tax bill. When a lender forgives debt, the amount of forgiven debt is typically treated as taxable income to you. One exception is if the foreclosure or short sale involves your primary residence. Then, thanks to the Mortgage Forgiveness Debt Relief Act of 2007, the canceled or forgiven debt is not taxable. Unfortunately for David, neither property involved was his home. The other way around having to pay tax on forgiven debt is if you were insolvent at the time. David should speak to a tax pro about what to do next.

Kathy called in because she’s in the middle of a divorce, their house is underwater and her husband doesn’t want to try a short sale–he just wants it to go into foreclosure. Kathy’s worried she’ll be sued for the difference between what they owe and what the home is worth, and wonders if she’ll have to file bankruptcy. California homeowners are protected from lawsuits by lenders if the loan in question was used to buy the house–if it was purchase money, in other words. If the loan was refinanced, though, the protection is more questionable. And as I noted in “Lose your house, then get sued,” some people who arrange short sales inadvertently agree to remain on the hook for the unpaid debt. Long story short, Kathy needs to talk to an experienced bankruptcy attorney about her exposure; she can get referrals from the National Association of Consumer Bankruptcy Attorneys.

Another caller was facing a $30,000 IRS bill and $30,000 in credit card debt. He had the cash to cover one debt but not both, and asked which one he should pay off. I suggested he pay off the credit cards, because the IRS offers low-rate installment plans. If you owe $25,000 or less, you can apply online for an installment plan. If you owe $25,000 or more, you may still qualify, but you have to jump through a few more hoops. For more, visit the IRS’ page on payment plans and installment agreements.

Yet another caller had a pile of debt and a 401(k), and wanted to raid his retirement to pay off the bills. No, no, no, I told him. A 401(k) withdrawal triggers a tax bill that will eat up one quarter to one half of your withdrawal, plus you lose all the tax-deferred gains that money could have earned. A $1,000 withdrawal will typically cost you $10,000 or more in lost future retirement income. If you’re considering tapping retirement accounts to pay your debts, you need to talk to an experienced bankruptcy attorney first because you’re likely in over your head and you need to understand the ramifications of what you’re considering.

In honor of Valentine’s Day, we had a few questions about spousal liability for debt. One wife asked if she could be taken off a joint credit card where her husband was carrying a big debt. The answer is no; if you’re a joint account holder, rather than an authorized user, you are equally responsible for the debt and it will show up on both your credit reports. One solution is to have the husband get a three-year, fixed-rate personal loan from a credit union, pay off the debt with that and then close the card. Next, a husband told us his wife had stopped paying her credit cards, and his credit card issuer had recently frozen his account. If the wife’s cards were in her name alone, her problems should not affect his credit; his issuer may have acted for other reasons. If, however, these are jointly held cards, her problems will indeed hurt his score.

These are just some of the questions we tackled. I’ll be back on the show next month and we’ll be tackling more of the issues that affect you, so call in if you can.

Answer: At least two of your children won’t be through college by the time you want to retire, so you may need to rethink your plans unless you have an exceptionally generous pension or a lot of money saved in that 403(b) already.

Most people have better things to do with their money than pay off a low-rate mortgage, and this is especially true for you, given your very low rate and your already short mortgage term. If you’re not already getting the full match in your 403(b), putting the money there is often your best bet. Even if you’re getting the full match, you might want to invest more in your retirement account if you’re not saving enough. You can play with a retirement calculator or talk to a fee-only financial planner to see if your retirement savings are on track.

Once you’re saving enough for retirement, you probably should prioritize that rainy day fund. The fact that you don’t have any savings is worrisome, particularly if you’re the sole income provider. Your initial goal should be to save three months’ worth of your must-have expenses — what you pay for shelter, utilities, food, insurance, child care and loan payments. You may want to expand that goal to six months’ worth of expenses or more if your spouse couldn’t easily return to work, should you lose your job.

Finally, you probably should think about starting college funds for the kids. College educations are all but essential these days if you want your children to make economic progress. (One example: According to the U.S. Census Bureau, incomes for men with only high school educations have dropped 31% in inflation-adjusted terms since 1989.) You may not be able or even want to pay the whole bill for their educations, but any money you save is likely to reduce the debt they would have to take on to get their degrees.

Answer: Withdrawals from a 529 plan are trickier than many people think. They’re tax free only to the extent that you pay qualified higher education expenses in the same calendar year that you take the distribution — and that other tax breaks aren’t used.

Qualified expenses include tuition, fees, books, supplies, equipment and additional expenses for “special needs” beneficiaries. Qualified expenses do not include insurance, sports or other activity fees, transportation costs or the purchase of a computer, unless it’s required by the school.

If you pull out too much, you have to pay income tax and a 10% federal penalty on the earnings portion of the excess withdrawal. (For example, if your account totaled $10,000, and $6,000 was earnings while $4,000 represented your original contributions, you would pay the penalty on 60% of any excess withdrawals.)

There’s another way you might get hit. If you were planning to use an education tax credit, such as the Hope or Lifetime Learning credit, you would have to deduct from your qualified expenses the amount used to generate the credit. Let’s say you used $5,000 in tuition expenses to generate a $1,000 Lifetime Learning credit. That $5,000 would have to be deducted from your qualified expenses total, which would further reduce the amount of your 529 withdrawal that’s tax free. You wouldn’t have to pay the penalty on the excess withdrawal created by the tax credit adjustment, but you would have to pay income tax on any earnings.

Now the good news: You are allowed to prepay next year’s costs to help boost your qualified expenses total. If it’s been less than 60 days since the withdrawal, you also would be allowed to roll the excess distribution over into a new 529 account.

Fortunately, you discovered the problem before the end of the year. If you’d learned about the problem only when you started preparing your tax return next spring, as many people do, it would be too late and you would be stuck with the extra tax and penalty.

I got a bunch of great column ideas to work on, but I also discovered that the information many of you are looking for is already on MSN Money. So here are some reader requests that have already been answered, and where you can find the information:

Dawn Soger: How do I improve my credit rating after a rotten marriage, and horrible divorce? I’m struggling to get back on my feet!

Liz: Start with “7 fast fixes for your credit score.” Anyone contemplating divorce should read “Don’t let your ex trash your credit,” because debt obligations can haunt you long after your marriage is over.

Kerry Erickson: Retirement strategies for 30-something workers who might have a portion of their Social Security benefits — or none at all — by the time they retire. My generation of workers are in dire need of advice on how to live after retirement especially since 401K matches a rarity these days.

Liz: I happen to think Social Security can survive, which will be a topic for a future column, but it’s still important to get a good early start on savings. Some columns to read include “Money in your 30s: Don’t get derailed by debt,” “Your magic number for retirement,” “Yes, you will live to be 80,” and “401(k) fixes for every age.

Jennifer Beach: What can people who have already been devastated by this recession (job loss, foreclosure, living in Mom’s basement) do to get back on their feet?

Liz: The key to starting financial recovery is creating a spending plan that actually works, and I recommend “The 50/30/20 budgeting strategy.” Once you’ve got your finances under control, you can work on repairing your credit. “Bounce back fast after bankruptcy” gives ideas for recovering from any credit disaster.

Bob Cagle: Why should I be concerned with my credit rating if I don’t plan on ever borrowing money again?

Liz: An excellent question, since credit scores affect even those who don’t want to borrow. Read more in “7 nasty credit myths that won’t die.”

Peter Nurman: When is it safe to close an account (revolving or otherwise) when there is inactivity in that account.

Liz: Closing accounts won’t help your credit scores, but that doesn’t mean you should never close an account. Read more in “Held hostage by your credit scores.”

Jennifer Bowman: What to do with too many houses. The BF and I would like to get married but that gives us 2 houses with little equity.

Liz: You might want to read one of my older pieces, “Do you have what it takes to be a landlord?” You might also want to read “Should you walk away from your home?”

Erica Gaede How to get out of debt. The fastest way. Where to put $$$ first savings retirement or debt?

Liz: Read “A debt payoff plan that works” and then “Your money priorities, first to last.”

Stephanie Teague: Improving your credit score. I want to get a mortgage soon, but feel like I need to improve my score to get a better rate. I don’t have negative marks against me, I just have student loans and 2 major credit cards that I’m in good standing with. I have one car loan that I have never been late on. However, my credit score is poor. What should I do?

Liz: If you don’t have any negative marks against you and you have active credit accounts, your scores shouldn’t be poor. I’d pull your credit reports from www.annualcreditreport.com and scour them for accounts that aren’t yours (indicating identity theft or mistaken identity) or negative marks older than 7 years. If you find those, dispute them. To get your scores into prime mortgage-borrowing territory, read “Raise your credit score to 740.”

Jaci Eby Berni: Immediate steps to take to protect yourself from identity theft and how to recover quickly if it happens to you anyway.

Liz: MSN’s “5-minute guide to protecting your identity” is a good start. Also read “The Hysteria over identity theft” to see what you really should be worried about, as well as what needs to change in “Identity theft: 5 ways to fight back.” The Identity Theft Resource Center is a great resource for victims

Diana Richmond Stewart: I agree with everything that has posted above plus I would like to see Retirement strategies for the almost 60 yr olds.

Liz: You’re in luck. Start with “8 money moves you must make at 50” and “What to do if you’re 55 and haven’t saved a dime.”

Jaci Eby Berni: Tips on how to lower my bills accross the board.

Liz: Start with the Smart Spending blog, which has original posts and links to the best stuff on the Web.

DeShondra Michelle: Having a budget and sticking to it while you are still completing your undergrad [degree]. The budget topics on MSN are more for college grads then students still working on their degrees.

Liz: I mentioned it above, but the 50/30/20 strategy can work for almost any income. It’s a good place to start.

Lisa Rastetter: Most of my $ I make goes to health insurance through small company I work for. I’m healthy but wants to know if I should search on my own?

Liz: Sometimes you can save money with an individual policy, particularly if you’re younger and healthier than your coworkers or willing to cope with a high deductible. MSN’s “5-minute guide to health insurance” can get you started. Another bit of good news is that individual policies can no longer be rescinded, or taken away, if you get sick. In the past, that was one of the major drawbacks to choosing an individual over an employer-provided policy

Antoinette Jarrett: I’d love an article called, “Money and the Married Woman.” It would be great info, especially for those in a community property state.

Liz: That’s an excellent idea. In the meantime, you might want to read “Get real: Marriage is a business” and “The myth of the marriage penalty.

Lisa Rastetter: My son will be 18 in a year & wants to start building good credit now. Is this possible?

Liz: Start with “Your teen’s credit is your problem.” Other reads include “9 ways to build a killer credit score from scratch” and “Should you cosign for your kid’s credit card?”

Mark Verbyla: What to do with a windfall of cash, such as oil lease money?

Liz: Read “What to do with a $10,000 windfall.

Jessalyn Cotter: College Financial Aid. The first of four about to enter in Fall 2011. How to get aid and still keep the most of retirement money and investments.

Liz: MSN has a whole decision center on this topic, called Managing College Costs. I’d also recommend checking out FinAid.org.

Jeff Pearce: How to increase your credit score. Is it just a “stay mistake free and wait” game??

Liz: Time helps, but you can take steps to speed things along. “7 fast fixes for your credit score” will help.

Liana Algarín: Is it better to pay off consumer debt aggressively and not put any money into retirement savings, or is it better to save for retirement while allowing debt to build interest?

Liz: Putting debt repayment ahead of retirement savings can actually cost you far more in lost retirement income than you’d save in interest. For more, read “Your money priorities, first to last.”

Brian Young: How to Refinance With No Equity in Your Home

Liz: You may find some answers in “Want to refinance but can’t? 3 tips.”

Kate McGee: Retirement strategies for those in their mid-late 20′s who are DINKs (Double Income No Kids) and plan to stay that way. (If it helps, he’s employed full time with a pension and a small 401(k) and will be forced to retire at 55, and I’m part-time with no benefits)

Liz: MSN’s “Money in your 20s” Decision Center may provide some answers. The good news is that without kids you’ll have more money to put aside for other goals, including retirement.

Mike E Cisneros Jr: Retirement and college savings

Liz: Check out MSN’s Retirement and College Savings Decision Center

Don Blakeley: Continued info on mortgages. What’s good and what’s bad.

Liz: MSN’s Getting the Right Home Loan Decision Center is a good place to start.

Wendy Michael: My husband was offered his dream job, so we left a house that we love in a poor selling market. It looks like we’re going to be landlords for the time being, and I’m trying to read up on all the issues involved (we’re using a property management company, but they don’t do our taxes for us!), and it would be nice to have a roadmap.

Liz: Reading “Do you have what it takes to be a landlord?” should help, but also check out the resources for landlords at Nolo.com.

Daushae Paxton: How to pay off debts while in college.

Liz: You’ll find helpful resources in MSN’s Managing Debt Decision Center.

Debbie Bottrell: Bravo How to correctly clean up my credit reports.

Liz: Again, “7 fast fixes for your credit score” is the place to start.

Debbie Bottrell: Also how to purchase a home with poor credit

Liz: These days it’s pretty much impossible to get a home loan with credit scores below 580 (or 620 in many cases). See the links above for improving your scores. Once they’re above 620 or so, MSN’s Home Buying Guide may help.

Nancy Thornton: Budgeting – not just how to budget but successful budgeters and their stories and HOW they actually do it – I love reading budgeting stories of people who were on the verge and how they started their budget journey!

Liz: I agree! You may have already seen these stories, but if not, read “Living on $18,000 a year–by choice” and “Retired by 50: What it takes” along with this follow-up.

Amy Welter: Any suggestions on student loans? My interest rates are through the roof because when I started college my parents made to much money and I didn’t qualify for any grants or even financial aid. Now I can’t pay them because I make $10,000 less than 2 years ago and now have a kid. The interest is accruing very very fast and its ruining my credit.

Liz: I’m going to send you straight to FinAid.org’s excellent page explaining your options if you’re having trouble paying student loan debt. You have a lot more options with federal loans than private loans. For more about the dangers of student loans, read “4 fixes for the student loan trap.”

Karyn Hill: I’m slowly working my way back from losing all of my savings and racking up credit card debt because I was laid off. I have a job now and I know the only thing I can do is keep plugging away and wait. I think what I want most is some reassurance that it does pay off in the end. Any chance of hearing some stories from people who were where I am a year or two ago? It’ll make me feel better when I stay home instead of going to a movie, or pass up contributing to my 401K in favor of paying a little extra on my credit cards.

Liz: “Huge debts, paid off fast” may give you some of what you’re looking for, but check out the link above about financial priorities. Saving for retirement needs to be at the top. Good luck!