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

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Under the terms of IBR, borrowers pay 10% of their discretionary income each month if their loans were taken out on or after July 1, 2014. Annie Nova, CNBC, 29 May 2026 Restaurant menu prices could rise Coming off a tough winter in which high home heating oil bills cut into discretionary income for dining out, restaurant owners were looking for an uptick in business this spring. Kenneth R. Gosselin, Hartford Courant, 10 May 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 Workers want financial freedom, stability, discretionary income, and enough for savings. Rachel Wells, Forbes.com, 13 Apr. 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 6 Jun. 2026.

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