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
The plans limit monthly payments to a share of discretionary income and cancel any remaining debt after a certain period, typically 20 or 25 years.
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Annie Nova, CNBC, 15 Apr. 2026
Development began in 1961, with an aim to capture a new corner of the market by making an affordable, sporty car—fun but practical—for baby boomers coming of age with discretionary income.
—Encyclopedia Britannica, 14 Apr. 2026
Three weeks later, gasoline prices have surged to more than $4 a gallon, a level that, if it is sustained, would sap U.S. consumers of hundreds of dollars in annual discretionary income.
—Rob Wile, NBC news, 3 Apr. 2026
The most important tool for student loan borrowers is Income-Driven Repayment (IDR), which caps monthly payments as a share of discretionary income.
—Richard Cordray, New York Daily News, 31 Mar. 2026
See All Example Sentences for discretionary income
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Annie Nova, CNBC, 15 Apr. 2026
Development began in 1961, with an aim to capture a new corner of the market by making an affordable, sporty car—fun but practical—for baby boomers coming of age with discretionary income.
—Encyclopedia Britannica, 14 Apr. 2026
Three weeks later, gasoline prices have surged to more than $4 a gallon, a level that, if it is sustained, would sap U.S. consumers of hundreds of dollars in annual discretionary income.
—Rob Wile, NBC news, 3 Apr. 2026
The most important tool for student loan borrowers is Income-Driven Repayment (IDR), which caps monthly payments as a share of discretionary income.
—Richard Cordray, New York Daily News, 31 Mar. 2026
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 25 Apr. 2026.
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