Why Budget 02.

04 assignment Economics shaniya tucker 1/12/21

1.Why is budgeting important to your life?

Budgeting is important in my life because it helps me more organizing and it helps me save money and
shows me if everything will get taken care of and if I would need more because its very organized out.

2.Describe your experience with this process. Was it easy, difficult, or somewhere in the middle? What
factors contributed to your feelings?

It was somewhere in the middle because it was first hard trying to figure what career I want to budget
with. The main factor that contributed to that feeling was budgeting the lifestyle I want with the career I
want and before budgeting I thought the lifestyle I wanted was more in middle class section but come to
find out that it is very expensive and more up on the “being rich” lifestyle, and I don’t want to live like
that I just want to be happy and live simple but financially staple to do a lot but not everything

3.How might the use of credit for a large purchase affect your budget? Discuss which type of credit plan
you would use, and how your budget can help you protect your credit score.

Well if you don’t pay it back you can be in debt (something I don’t ever want to be in) so that’s why I
need to have the lifestyle I want to have so whenever I do need more money than I was expected I can
pull myself out, the type of credit plan I want to have is the Installment credit plan cause it doesn’t bring
you large fees and it can help you with your mortgage and loans

4.What adjustments did you have to make to your budget? How did you decide where to make
changes?

I did not have to make any adjustments besides testing out different credit plans because I did not know
which one I wanted at first.

5.Will you begin using a budget regularly now? Why or why not?

Yes, I will begin using budgeting now because since I’m 18 and I’m going to apply for a credit card soon I
will need to bring my credit score up since I have no credit at all.