Final answer:
The first step in creating a budget is listing income sources and amounts to establish your total available monthly income. Therefore, the correct option is C.
Step-by-step explanation:
The first step to creating a budget is listing income sources and amounts. This step is critical because it establishes the foundation of your budget by determining the total amount of money coming in each month. It's the starting point for understanding your financial capabilities and constraints.
Once you know your total income, you can move on to calculate net income after taxes and other deductions. With your net income determined, you'd typically proceed to list your fixed expenses such as rent or mortgage, utilities, and car payments. Lastly, you should plan for a savings amount to ensure you are setting aside money for the future or for emergencies.