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
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The Obama administration targeted for-profit career-training programs by measuring the size of their graduates’ loan payments as a percentage of their annual earnings or discretionary income. — Ira Porter, Christian Science Monitor, 23 Sep. 2026 Even though energy prices have not spiked as high as many feared, the Brown University tracker demonstrates how this conflict is eroding Americans’ discretionary income. — Matt Egan, CNN Money, 8 Sep. 2026 If a household's AGI is $100,000, their discretionary income would be about $59,000. — Maya Benjamin,dan Avery, CNBC, 31 Aug. 2026 McDonald’s has trotted out more offerings for its price-sensitive diners, such as a $4 breakfast, and more items for under $3 as high gas and grocery prices leave millions of Americans with less discretionary income. — Phil Wahba, Fortune, 4 Aug. 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 7 Oct. 2026.

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