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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
The result is a smaller discretionary income and, thus, a smaller monthly payment required. Shahar Ziv, Forbes.com, 13 May 2025 However, discretionary income under this plan is calculated at 100% of your state’s poverty guideline. Robert Farrington, Forbes, 18 Dec. 2024 Wealth inequality, rising rent and higher cost of living mean that young people have less discretionary income. Kian Bakhtiari, Forbes.com, 25 May 2025 In short, the Repayment Assistance Plan uses a sliding scale based on income and provides borrowers with a straightforward and predictable way to estimate their payment based on their income alone, without complex formulas about poverty lines or discretionary income. Shahar Ziv, Forbes.com, 29 Apr. 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 13 Jun. 2025.

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!