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
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.
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Rob Wile, NBC news, 3 Apr. 2026
Under the terms of IBR, borrowers pay 10% of their discretionary income each month — and that share rises to 15% for certain borrowers with older loans.
—Annie Nova, CNBC, 1 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
This path can be particularly helpful for retirees whose income is largely protected, such as those relying primarily on Social Security benefits, and those who have minimal discretionary income.
—Angelica Leicht, CBS News, 26 Mar. 2026
See All Example Sentences for discretionary income
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Rob Wile, NBC news, 3 Apr. 2026
Under the terms of IBR, borrowers pay 10% of their discretionary income each month — and that share rises to 15% for certain borrowers with older loans.
—Annie Nova, CNBC, 1 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
This path can be particularly helpful for retirees whose income is largely protected, such as those relying primarily on Social Security benefits, and those who have minimal discretionary income.
—Angelica Leicht, CBS News, 26 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 20 Apr. 2026.
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