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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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 Many of them are in the season of life when discretionary income rises to meet peak discretionary time. Sophia Nguyen, The Atlantic, 2 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 15 Sep. 2026.

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