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1.
Perhaps the best reason to build up savings before having a child is that _______.
You may not be working for a while after the child is born. Prepare by building up a savings fund.
2.
Which of the following are tax breaks that parents can qualify for?
Both of the above. These as well as a few others are some tax breaks that you should investigate if you are a parent or planning to become one.
3.
By setting up a custodial investment account for your child, you can shelter a certain amount of its income from taxes.
True. The IRS allows you to shelter some of the income from taxes.
4.
You can select a person to act as guardian for your child after your death in your _______.
Will. Guardians for children are named in the parents' wills.
5.
After your baby is born, it is okay to stop contributing to your retirement plan.
False. These are prime years, and if you cease contributing, you will lose growth in your retirement plan. Also, you can't necessarily count on your children helping you out when you are old.