How Economic Forecasting Shapes My Personal Financial Decisions

Abstract

Course name Instructor’s name Assignment due date Reflection Paper on Economic Forecasting As an adult, many of the decisions I make involve money such as personal spending, investments, and setting financial goals. The readings from this course have shed light on key factors one must consider when making decisions on financial goals. I have learnt that economic forecasting plays a vital role in making personal decisions about money and the experience has affected how I feel about my financial wellbeing. In this paper, I will reflect on how economic forecasting has made me better at making financial goals, investments, and planning on personal spending. Growing up, I did not have to think much about spending or investing since I had no financial responsibilities. Being an adult allows me to make my own decisions and choose the paths that I feel have the best outcomes. I remember when I was young and my parents would decide the things worth spending money on and it was not always what I would want. While we had occasional family vacations, I felt that I would want more than they often offered to provide. Being an adult has put me in the position that I have to make decisions and focus on improving my future financial wellbeing (Gwartney & Stroup, 2014). Consequently, it is important that I use the lessons I learn in and outside the formal education systems to make better decisions. I find that knowledge on economic forecasting is particularly useful when making personal financial plans and decisions. I have learned that economy is not always stable and there are times people should minimize personal spending to improve their financial wellbeing. When planning my expenditure, I seek to maximize on how changes in the national and global economy may affect my financial stability. Economic policies influencing changes in interest rates are particularly vital in decision-making on investments since they affect the income of businesses. Economic forecasting plays a major role on the effect of personal decisions on...