Brock recently graduated from college and began his job as a media analyst earning $50,000 per year. He wants to start saving for retirement and use a weekly budget to keep him from spending too much money. He determines that his _______ income is $120 per week for entertainment, dining out, clothes, and other non-essential items.

Question

Quizplus · Accepted Answer

Discretionary income is the amount of an individual's income that is left for spending, investing, or saving after taxes and personal necessities (like food and shelter) have been paid. It refers to the money that is available for non-essential expenses. In Brock's case, the $120 per week allocated for entertainment, dining out, clothes, and other non-essential items is his discretionary income.

Brock Recently Graduated from College and Began His Job as a Media