Wedding Cash, College Savings, Term Life Insurance

ANSWER: Tackling the credit-card debt first will pay off on a couple of fronts. For starters, you're probably paying 13% or more on that debt, while money held in a cash-based account isn't likely to earn more than 5%. But that's not all: Lowering your debt will boost your FICO score — the almighty score created by Fair Isaac that's used by mortgage lenders to assess your credit-worthiness. (You're shooting for a stellar score in the mid-700s or higher.) It also will reduce your overall debt/income ratio, one of the key factors mortgage lenders use when determining just how large a mortgage you can handle. (For a conservative estimate, take your combined monthly salaries and multiply by 0.36. Your total monthly debt payments, including housing, car loans, student loans, credit cards and so on, shouldn't exceed this amount.) Once done, sit down with the missus and create a budget that will keep you from racking up any more credit-card debt — and allow you to save for that down payment. "Starting a marriage in debt is never a good thing," says Reston, Va.-based financial planner Patricia Houlihan. "You don't want to be fighting about money when you're newly married." For a sneak peek at how much house you can afford, click here.

QUESTION: What's the best way to save for college for our newborn grandson? And what if he doesn't go to college?

ANSWER: Easy — set up a 529 plan. These college savings accounts, named after the part of the tax code that created them, operate much like Roth IRAs: Your contributions grow tax-deferred, and withdrawals can be made tax-free to cover the costs of any college your grandson chooses. The plans are state-sponsored, but many are managed by well-respected, low-cost mutual fund companies — such as Vanguard, Fidelity and T. Rowe Price (the latter, in fact, runs Alaska's plan). You don't need to stick with your home state's plan, but that's the one to check out first. Why? In addition to the federal tax breaks, you might get state tax breaks or other perks, like matching contributions. Couples in New York, for example, get a $10,000 state-tax deduction on contributions.

But if your state's plan stinks, look elsewhere. Find one with cheap fees and decent investment options (many plans offer age-based portfolios that will grow more conservative as college looms). These days brokers are responsible for selling an increasing number of plans, which means you'll get socked with a commission — as high as 5.75% — on your contributions. Skip 'em: You can find plenty of good plans sold directly to the public. For details on each plan, visit www.savingforcollege.com.

And if little Johnny decides to join a rock band rather than hit the books? The account can be transferred to a more academically minded family member. Alternatively, contributions not used for higher education can be withdrawn penalty-free, while earnings will be subject to income tax plus a 10% penalty.

QUESTION: At what point is term life insurance no longer needed? I'm 58, married with no kids, and have a pension and $1.5 million in retirement funds.

ANSWER: If you're in good health and the insurance isn't covering a specific financial need, dump it. "You buy insurance against the economic consequences of premature death," says Bob Hunter, insurance director for the Consumer Federation of America. No dire consequences? No need for term life insurance. Unlike whole life insurance policies, which carry an investment component and are designed to be held for perpetuity, term life insurance is a temporary product. So take that money and invest it — or use it to go out and live a little.