The envelope method, notebook and pencil, and online software are all methods of ______.

A. estimating your unexpected expenses

B. planning for your future

C. tracking your spending

D. understanding your current expenses

Answer

The correct answer is C. tracking your spending.

Explanation

The envelope method is a budgeting technique where you allocate a certain amount of cash to different spending categories, allowing you to visually track how much you have left to spend in each category. Using a notebook and pencil can also help individuals keep track of their spending habits by jotting down expenses. Online software designed for budgeting and expense tracking provides tools and reports that help users monitor their spending trends over time. All these methods focus on understanding and keeping tabs on how much is spent and where, which aligns with the concept of tracking your spending.