6.2 - Budgeting for your Home

Front

What are the two financial goals achieved by buying a home?

Back

Providing a place to live and investing for the future.

Front

What does the term 'cost of living' refer to?

Back

Cost of living calculations take into account the prices of housing, transportation, food, and other basic needs.

Front

Why are millennials buying fewer homes than previous generations?

Back

They have to self-fund retirement to a greater extent, are paying down large student loans, and prefer to spend money on travel experiences.

Front

What is a common reason young adults choose to rent instead of buying a home?

Back

They're graduating with a lot of student debt they must pay off, making it harder to save for a down payment.

Tags

CCSS.RI.8.1

CCSS.RI.8.8

CCSS.RL.11-12.1

CCSS.RL.8.1

CCSS.RL.9-10.1

Front

Which of the following is NOT a type of utility to budget for?

Back

Rent.

Front

Define 'budgeting' in the context of personal finance.

Back

Budgeting is the process of creating a plan to spend your money, ensuring you have enough for necessary expenses and savings.

Front

What is the importance of having a budget when buying a home?

Back

A budget helps you understand your financial limits, plan for mortgage payments, and account for additional costs like utilities and maintenance.

Front

What are some common costs associated with homeownership?

Back

Mortgage payments, property taxes, homeowners insurance, maintenance, and utilities.

Front

How does student debt impact home buying decisions for young adults?

Back

High student debt can delay the ability to save for a down payment and increase financial strain, making renting more appealing.

Front

What is the difference between fixed-rate and adjustable-rate mortgages?

Back

Fixed-rate mortgages have a constant interest rate throughout the loan term, while adjustable-rate mortgages have rates that can change based on market conditions.