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
Wealth inequality, rising rent and higher cost of living mean that young people have less discretionary income.
—
Kian Bakhtiari, Forbes.com, 25 May 2025
In short, the Repayment Assistance Plan uses a sliding scale based on income and provides borrowers with a straightforward and predictable way to estimate their payment based on their income alone, without complex formulas about poverty lines or discretionary income.
—Shahar Ziv, Forbes.com, 29 Apr. 2025
The Bills already command a lot of people’s attention and discretionary income in the early part of the hockey season.
—Matthew Fairburn, New York Times, 26 Mar. 2025
Historically, at least, IDR plans limit borrowers’ monthly payments to a share of their discretionary income and cancel any remaining debt after a certain period, typically 20 years or 25 years.
—Annie Nova, CNBC, 6 Apr. 2025
See All Example Sentences for discretionary income
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Kian Bakhtiari, Forbes.com, 25 May 2025
In short, the Repayment Assistance Plan uses a sliding scale based on income and provides borrowers with a straightforward and predictable way to estimate their payment based on their income alone, without complex formulas about poverty lines or discretionary income.
—Shahar Ziv, Forbes.com, 29 Apr. 2025
The Bills already command a lot of people’s attention and discretionary income in the early part of the hockey season.
—Matthew Fairburn, New York Times, 26 Mar. 2025
Historically, at least, IDR plans limit borrowers’ monthly payments to a share of their discretionary income and cancel any remaining debt after a certain period, typically 20 years or 25 years.
—Annie Nova, CNBC, 6 Apr. 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 5 Jun. 2025.
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