discretionary income
noun
: income that is left after paying for things that are essential, such as food and housing
She has enough discretionary income to pay for a nice vacation each year.
Examples of discretionary income in a Sentence
Recent Examples on the Web
That amount is generally set at 10% of discretionary income, divided by 12, for people who borrowed after July 1, 2014, and 10% for people who borrowed before that date.
—
Connor Greene, Time, 11 Dec. 2025
Annual taxes and essential expenses also influence how much discretionary income households can save.
—Mike Winters, CNBC, 22 Nov. 2025
On this plan, borrowers pay no more than 10% to 20% of their discretionary income toward their loans each month.
—Anna Kleiber, jsonline.com, 12 Nov. 2025
Payments are typically set at 15 percent of discretionary income for most, or 10 percent for new borrowers after July 1, 2014.
—Suzanne Blake, MSNBC Newsweek, 10 Oct. 2025
See All Example Sentences for discretionary income
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Connor Greene, Time, 11 Dec. 2025
Annual taxes and essential expenses also influence how much discretionary income households can save.
—Mike Winters, CNBC, 22 Nov. 2025
On this plan, borrowers pay no more than 10% to 20% of their discretionary income toward their loans each month.
—Anna Kleiber, jsonline.com, 12 Nov. 2025
Payments are typically set at 15 percent of discretionary income for most, or 10 percent for new borrowers after July 1, 2014.
—Suzanne Blake, MSNBC Newsweek, 10 Oct. 2025
See All Example Sentences for discretionary income
Cite this Entry
“Discretionary income.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discretionary%20income. Accessed 15 Dec. 2025.
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