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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This is where a lot of American consumer discretionary income is going right now. Boaz Sobrado, Forbes.com, 30 June 2026 The monthly bills on PAYE, on the other hand, are capped at just 10% of a borrower's discretionary income. Annie Nova, CNBC, 16 June 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 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 Jul. 2026.

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