6.2 - Budgeting for your Home

1. Buying a home achieves which two financial goals at the same time?

• 1. Providing a place to live, investing for the future

• 1. Providing a place to live, paying for your college expenses

• 1. Providing a place to live, bringing you great happiness

• 1. Providing a place to live, paying off your consumer debt

3. Young adults are more often choosing to rent instead of buying a home because...

• 1. Monthly rent payments are always lower than monthly mortgage payments

• 1. Landlords give young people better rates on apartments than older people can qualify for

• 1. They're graduating with a lot of student debt they must pay off, so it takes longer to save a down payment

• 1. Renting is a better long-term investment strategy

1. Which statement about cost of living is TRUE?

• 1. Most American cities have approximately the same cost of living

• 1. Cost of living refers to what percentage of your city's population lives above the poverty rate

• 1. Your life will be better if you live somewhere with a low cost of living

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

3. How much money should you put toward your home's downpayment?

• 1. Your entire emergency fund

• 1. 3 times your monthly expenses

• 1. 20% of the price of the home

• 1. 5 years' worth of payments

2. Millennials are buying fewer homes than in previous generations for each of these reasons EXCEPT...

• 1. They have to self-fund retirement to a greater extent

• 1. They find apartments to be trendier and more fun

• 1. They are paying down large student loans instead

• 1. They prefer to spend money on travel experiences rather than homeownership.

4. You should meet all of these requirements before you consider buying a home EXCEPT...

• 1. You qualify for good mortgage terms

• 1. You have enough saved for a down payment AND an emergency fund

• 1. You plan to stay in the home for 5 or more years

• 1. You are married and have children

2. All of the following are types of utilities that you may have to budget for EXCEPT

• 1. Electric

• 1. Water/Sewer

• 1. Gas

• Rent

When choosing where you want to live what is a factor we did not discuss?

• Affordability

• Climate

• Crime Rates

• Traffic

FInding the true 'Cost of Living' is really easily to calculate

• TRUE

• FALSE