Margo, that is correct and you use 2 for each proposal you send. You get 60 a month so you can apply to at most 30 jobs a month, unless you pay $10 for plus membership. With plus membership, you get 70 a month and connects you don't use one month roll over to the next month. Without plus membership, you lose connects you don't use by the end of the month.
Before you start applying for jobs, you should read this all the links and advice given in this thread, which you will find at the top of the "New to Upwork" page in the greyed-out area.