Final answer:
The housing counselor should recommend that the client tracks all income and expenses to evaluate the costs and benefits of home ownership and to create a budget to assess financial readiness for purchasing a home.
Step-by-step explanation:
To help the client begin planning for a home purchase, a housing counselor should recommend tracking all financial aspects related to the client's personal finances. This includes not just bill payments, but also income, expenses, and savings. By doing so, the client can evaluate the costs and benefits of renting versus buying a home and assess the financial aspects of transitioning from renting to homeownership.
The process involves creating a budget to ensure that enough money is coming in monthly to cover all expenses. Maintaining this budget helps establish a clear understanding of the client's financial capacity and can guide them towards making informed decisions about affordability and saving for the home purchase. Specifically, considering the costs associated with home ownership, such as down payments, mortgage payments, taxes, insurance, and maintenance, is essential in this financial planning process.
Thus, the correct choice to assist the client in preparing financially for a home purchase is C- Track all income and expenses.