First, it's awesome that your son is paying for school and living at home. He's got some good frugal habits. Also, nice job keeping your budget reasonable. What do you do with your two extra paychecks each year? I would use them to fund EF, pay loans. Once you've got that funded you can move that saving into retirement.
Since you want to save more, here are areas where I see room for improvement.
125 electric
68 gas
66 water qrtly
160 gasoline two cars
92 car insurance usaa son turned 18 on my ins. liability on my 2 cars, full on his
83 cable internet
800 groceries 4 person me, wife and both kids
60 dining
53 school lunches daughter
40 hairs ranges from month to month
74 gym dues we go 6 days a week really only outlet we do
5 newspaper coupons
55 Christmas fund monthly-savings
45 supplements
Utilities are high. I spend most of my time working by natual light, nothing electronic running but my finances laptop; mine are a fraction of yours.
$160 gas. Is this all too and from work? Look for places to cut this. Bike, combine trips, you know the deal.
Why do you have full insurance on your sons car?
913 on food. You can do better. Pack leftovers for your daughter, stop going out to eat, cut down on meat/packaged food/cereal and buy produce that's on sale.
Cut your own hair.
Gym is high, gas is high. Replace both with bikes.
Coupons concerns me. There is no room in your budget for buying random crap and I get grocery adds in the mail. Either you are buying packaged goods you don't need or you buy your groceries at Target along with DVDs and cute outfits. Or you enjoy sitting down with the Sunday paper. That would be okay.
660 per year on Christmas? I thought the gym was your only outlet, not a once a year spending frenzie.
Supplements: are you telling me $227 per person per month food doesn't even have the nutrients you need?
I would cut back in most of the suggested areas and then give the three of you each $20 per month allowance. You don't have any fun money in there, but you have tons dedicated to not doing simple tasks, $40 so you don't have to cut your hair, $60 to avoid cooking twice a month, $72 for climate controlled exersice, $40 on a bet that your son is more irresponsible than the insurance companies think. Once you start cutting, you won't miss a thing.