Sorry for responding late...
I think you can do a saltwater reef on the cheap, as long as you are patient, decide what kind of reef you want to keep and join a good reef club...California is basically one big freaking reef club...
If you want to maintain a nice budget tank, then you should stick with soft corals at first...This will show you the ropes and it will be a lot more forgiving when you make mistakes(Or your kids...

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I started my Reef with a 29 Gallon all in one tank...Had it for 2 years before I went to a 75 Gallon(1 year) and then to my 125(Got it for $75.00 thru Craiglist)...I moved my livestock every time I upgraded...
Here is a video of my 125 Gallon...It's a bit dirty cause I started to experiment with different nutrients but the corals are responding well...BTW the video is long...
http://www.youtube.com/watch?v=3ki7qWTnFq4