No one is ever fully prepared for the life changes of having a child. So breathe out — the mere fact that you’re taking our quiz means that you’re researching the right things, and you’ll be more ready for the first day of parenthood, and the days that will follow.

Our quiz is a fun way to see how well you have prepared financially for your baby. You can find the answers at the bottom.

1. THE AVERAGE COST FOR AN INFANT AT A CHILDCARE CENTER IN 2018 WAS:

A. $7,273

B. $10,972

C. $15,822

D. $25,076

2. 529 REFERS TO:

A. The time your baby is likely to wake up crying most mornings

B. The child tax credit

C. A tax-advantaged college savings option

D. A tax-advantaged educational savings option

3. TRUE OR FALSE: IT'S TYPICAL TO GET YOUR FULL SALARY DURING MATERNITY LEAVE:

A. True; most people see no reduction in pay.

B. False; you should be expecting to take a pay cut.

4. THE AVERAGE HOSPITAL BILL FOR HAVING A BABY IN THE U.S. IS:

A. $0; it’s completely covered by most healthcare plans.

B. $3,764

C. $8,159

D. $10,808

5. THE CURRENT CHILD TAX CREDIT IS:

A. $500

B. $1,000

C. $2,000

D. $4,000

6. TRUE OR FALSE: YOU SHOULD PROBABLY PUT AN ESTATE PLAN IN PLACE WHEN YOU HAVE A BABY:

A. True; an estate plan is important for all parents.

B. False; those are for uber-rich people.

7. HOW MUCH MONEY SHOULD YOU HAVE IN YOUR EMERGENCY FUND?

A. A couple hundred dollars is good

B. One to two months' worth of expenses

C. About six months' worth of expenses

D. What’s an emergency fund?

8. TRUE OR FALSE: YOU'RE REQUIRED BY LAW TO GET LIFE INSURANCE WHEN YOU HAVE A CHILD:

A. True; in most states you’re required to get at least enough life insurance to cover 10 times your salary.

B. False; while car insurance is often required, life insurance is not.

ANSWERS:

1. THE AVERAGE COST FOR AN INFANT AT A CHILDCARE CENTER IN 2018 WAS:

A. $7,273

B. $10,972

C. $15,822

D. $25,076

Answer: B — Be honest; you half believed $25,076, didn’t you? Luckily, according to a recent survey by care.com, it’s not that bad. But there’s no question that $10,972 a year will be a huge line item in your budget. And that’s just the average. Depending on where you live, the cost could be higher (maybe having the in-laws over a lot to help isn’t such a terrible idea after all).

2. 529 REFERS TO:

A. The time your baby is likely to wake up crying most mornings

B. The child tax credit

C. A tax-advantaged college savings option

D. A tax-advantaged educational savings option

Answer: D — This was a bit of a trick question. 529s are generally known as a college savings option (because that’s what they historically were). But the tax law passed in late 2017 expanded how money in a 529 can be used. Today, you’re also permitted to withdraw up to $10,000 per year to help pay for private K-12 tuition.

Whether you use a 529 for that purpose, to pay for college or both, these accounts allow you to save money for your child’s education in a tax-advantaged way.

3. TRUE OR FALSE: IT'S TYPICAL TO GET YOUR FULL SALARY DURING MATERNITY LEAVE:

A. True; I’ll see no reduction in pay.

B. False; I'm expecting to take a pay cut.

Answer: B — While more and more companies are offering paid maternity and even paternity leave, the reality is that in many cases, you’re likely to take a pay cut during leave. The Family and Medical Leave Act (FMLA) allows for mothers to take up to 12 weeks of leave following the birth of a child if she meets certain requirements. However, the leave does not have to be paid.

Many employers offer some assistance with salary during a leave, either through paid maternity leave or through employer provided short-term disability coverage. It’s a good idea to check with your employer sooner rather than later and begin to make a plan for how you’ll cover any loss of salary.

4. THE AVERAGE HOSPITAL BILL FOR HAVING A BABY IN THE U.S. IS:

A. $0; it’s completely covered by most healthcare plans.

B. $3,764

C. $8,159

D. $10,808

Answer: D — While costs can vary greatly depending on a number of factors, you’re likely to wind up with a four-figure hospital bill, and five figures isn’t out of the question. You can see your state’s average here. It’s a good idea to prepare for the hospital bill as soon as possible. That’s because it often arrives around the same time as you’re going to have to start paying for childcare.

5. THE CURRENT CHILD TAX CREDIT IS:

A. $500

B. $1,000

C. $2,000

D. $4,000

Answer: C — This was starting to feel like a bit of a downer from a financial perspective, so we thought we’d throw this one in here for a pick-me-up. Unless you make more than $200,000 as a single parent or $400,000 as a married couple, junior is worth $2,000 to you come tax time. And that’s a credit, not a deduction, so you can knock $2,000 off your federal tax bill. Phew, finally some money going into your pocket!

6. TRUE OR FALSE: YOU SHOULD PROBABLY PUT AN ESTATE PLAN IN PLACE WHEN YOU HAVE A BABY:

A. True; an estate plan is important for all parents.

B. False; those are for uber-rich people.

Answer: A — While an estate plan may sound like something from Downton Abbey, the reality is that an estate plan spells out what happens to your child if something happens to you. While it’s not fun to think about, if don’t have an estate plan, a court will decide things like where your child will live and who will manage his or her money. An estate plan allows you to specify your wishes.

7. HOW MUCH MONEY SHOULD YOU HAVE IN YOUR EMERGENCY FUND?

A. A couple hundred dollars is good

B. One to two months’ worth of expenses

C. About six months’ worth of expenses

D. What’s an emergency fund?

Answer: C — It's typically a good idea to have about six months’ worth of expenses saved in an emergency fund. And when you have a new baby, you might want even more. Your emergency fund is money that you’ll use to pay for unexpected things like a major car repair or a big hospital bill. It can help keep your parent budget on track when things go wrong.

8. TRUE OR FALSE: YOU'RE REQUIRED BY LAW TO GET LIFE INSURANCE WHEN YOU HAVE A CHILD:

A. True; in most states you’re required to get at least enough life insurance to cover 10 times your salary.

B. False; while car insurance is often required, life insurance is not.

Answer: B — Most states require that you get some level of car insurance if you own a car. If you have a mortgage on your home, your lender will probably require that you get homeowner’s insurance. While life insurance is typically not required for parents, it’s a good idea to get it if you don’t already have it. If you or your spouse was to die prematurely, life insurance can help protect your child financially. And if you add permanent life insurance to your plan, you will get additional benefits that you can use throughout your life.

Some parents even buy permanent life insurance on their children to take advantage of the benefits it can offer them throughout their lives.

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