Shari and David Karnowski, with Joe Pitzl, have a toddler and triplets on the way. They needed advice, as they figure their future day care would cost around $1,000 per week. (Star Tribune/The Minnesota Star Tribune)

Shari and David Karnowski were trying for another baby to keep their charming 2-year-old daughter Ellie company. Now she's pregnant -- with triplets. The couple are well aware of the time and the financial commitment it takes for one infant. But three? This calls for some professional assistance. So I called Joe Pitzl, a certified financial planner who from time to time helps readers with their money matters.

The family is fiscally conservative and frugal. They rarely pay full price for anything. They're canceling DirectTV and will stop eating out. "It's been hard to find additional ways to cut things out of our normal expenses," Shari said.

They've saved diligently for retirement, they have no car payments, and they carry little debt aside from the mortgage for the Apple Valley home they purchased two years ago and a $20,000 fixed-rate home equity loan they used for fertility treatments. Financial help from family members can't make up the shortfall.

The Karnowskis could try to sell, but they really don't want to and wonder if they even could in this market. Not only that, but finding a new home to purchase or place to rent that will accommodate their growing family probably wouldn't cost much less than their mortgage payment today.

Joe crunched the numbers this way and that and didn't find a perfect solution for the Karnowskis. Pitzl figures one of the parents will have to stay at home or make a dramatic work reduction when the triplets arrive in August. Day care for three infants and a toddler would cost around $1,000 per week.

The Karnowskis work for the same insurance company and earn approximately $100,000 combined. But that day care bill would eat up most of one salary.

Bottom line: "It will be difficult to make ends meet," Pitzl said. However, he said he's "cautiously optimistic that you can make this work."

Recommendations:

• Consider working part time. Paying for day care so both parents can work just doesn't make sense. But without both David, 35 and Shari, 34, earning a paycheck, money will be extremely tight. Joe suggests the couple see if their employer would consider a flexible work arrangement or compressed schedule so that one person could work full time and the other part time with as little child care expense as possible.

• Sell the Civic. The family now has three cars: a used minivan they recently purchased free and clear when Shari traded in her beloved truck; a Saturn SUV, and a 1998 Honda Civic. Joe suggests they sell the Civic since it is the least practical of the three cars for carting around several children, and stash the proceeds into cash reserves. They hope their cash cushion is plush enough that it will last through the first year that the triplets are here.

• Increase their insurance. Although it's hard for the strapped family to consider an added expense, Joe strongly encourages the couple to sign up for long-term disability insurance through work because the loss of income for the family would be "insurmountable."

Shari and David each get $100,000 in life insurance through work. But that's not enough, said Pitzl, who points out that child care alone for five years would cost $250,000. He suggests a term life insurance policy of at least $500,000 for the primary breadwinner and a $250,000 policy for the other parent.

Term insurance, which is temporary life insurance that has no cash value, "is as cheap as you can go," Pitzl said. Because money is tight, he suggests the couple shop for a 10-year term policy at www.term4sale.com and extend the term down the road.

• Reduce tax withholding. Because the couple's income will be reduced and their number of dependents will grow, Pitzl determines that the family will owe no federal income tax next year. He suggests the two reduce the amount of tax withheld from their paychecks as much as possible in order to puff up monthly cash flow and deflate their refund check.

• Get creative. Given the unusual situation, Joe made two against-the-grain suggestions: Consider refinancing into an interest-only loan with smaller monthly mortgage payments to free up cash flow. Since the family plans to stay in the house, Pitzl figures they could catch up later.

Another option is to withdraw money from their 401(k)s. They could do so without paying taxes and penalties -- up to a point -- because their circumstances will put them in the zero percent tax bracket. Those ideas don't sit well with the risk-averse pair. Shari's "leery" because "there are so many ifs, ands and buts and unknowns over the next five years." Also, she hates risking their future financial security. David agrees: "I'd like to really tighten the belt and see what we can do first."

Any ideas for the Karnowskis? Contact Kara McGuire: 612-673-7293, or send e-mails to kara@startribune.com.