The setting of Bag-End in The Hobbit helps establish the easy, safe lifestyle that Bilbo is used to. This impacts the reader's understanding of Bilbo at the beginning of the story because it portrays him as someone who is comfortable and content with his quiet and predictable life. The comfort and safety of Bag-End contrast with the adventurous nature of the quest presented to Bilbo by Gandalf, highlighting the initial reluctance and fear Bilbo feels towards leaving his comfortable existence. The reader can grasp the contrast between Bilbo's familiar setting and the challenging, unknown world that awaits him, setting the stage for his growth and transformation throughout the story.