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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This is a nod to rising prices and a way to attract customers who have less discretionary income to spend. Suzanne Blake, MSNBC Newsweek, 11 Aug. 2025 There are discretionary income, repeat business and compulsive collectors at state. Dewayne Bevil, The Orlando Sentinel, 5 Aug. 2025 These plans were created by Congress in the 1990s to make student loan bills more affordable by capping monthly payments at a percentage of discretionary income, and typically cancelling remaining debt after 20 to 25 years. Mia Thurow, jsonline.com, 29 July 2025 For borrowers with loans older than July 2014, their payments are capped at 15% of discretionary income. Cory Turner, NPR, 24 July 2025 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 29 Aug. 2025.

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