Planning Beginner: Financial Issues for New Parents

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1.
In order to qualify for free public services, special-needs children must pass a financial means test.
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True. In order to qualify for free public services, special-needs children must pass a financial means test.
2.
All pregnancy costs are covered by health insurance.
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False. This is why anyone planning to get pregnant should investigate what is covered.
3.
By setting up a custodial investment account for your child, you can shelter a certain amount of its income from taxes.
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True. The IRS allows you to shelter some of the income from taxes.
4.
After your baby is born, it is okay to stop contributing to your retirement plan.
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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.
5.
You can open up a custodial investment account in your child's name.
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True. This is a good way to get your child started on investing.