Choose wisely. There is only one correct answer to each question.
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1.
There are tax breaks available to parents with dependent children.
True. The IRS cuts you several nice breaks every year.
2.
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.
3.
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.
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.
You can open up a custodial investment account in your child's name.
True. This is a good way to get your child started on investing.