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
These plans were created by Congress in the 1990s to make student loan bills more affordable by capping monthly payments at a percentage of discretionary income, and typically cancelling remaining debt after 20 to 25 years.
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Mia Thurow, jsonline.com, 29 July 2025
For borrowers with loans older than July 2014, their payments are capped at 15% of discretionary income.
—Cory Turner, NPR, 24 July 2025
The plans cap people’s monthly payments at a share of their discretionary income and cancel any remaining debt after a certain period, typically 20 years or 25 years.
—Annie Nova, CNBC, 23 July 2025
This could be a negative for Netflix, which relies on discretionary income.
—Trefis Team, Forbes.com, 18 July 2025
See All Example Sentences for discretionary income
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Mia Thurow, jsonline.com, 29 July 2025
For borrowers with loans older than July 2014, their payments are capped at 15% of discretionary income.
—Cory Turner, NPR, 24 July 2025
The plans cap people’s monthly payments at a share of their discretionary income and cancel any remaining debt after a certain period, typically 20 years or 25 years.
—Annie Nova, CNBC, 23 July 2025
This could be a negative for Netflix, which relies on discretionary income.
—Trefis Team, Forbes.com, 18 July 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 20 Aug. 2025.
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