I can't see your site without a password, but I am assuming you want an imge in the blog post listing. In 7.1 Go to pages in edit mode select blog, then choose the post you wish to edit. Up on the header of the blog is a gear icon, choose that and a panel comes up with content in the window. An image can be inserted there by hitting the insert dot and adding an image or gallery block among many other options. At the top of that panel is an options tab to the right of content. There you add a thumbnail image which shows up in a blog summary block. You also have the option of adding a separate social sharing image for FB or other sites.
7.0 works pretty much the same way, except when you choose edit from the list of blog posts it opens that panel right then.