Leigh and Rob prepared a household budget in an attempt to manage their money better. They prepared the following list: Monthly income (after taxes) = $4,500; Monthly expenses (necessities), which include rent, $550; auto loan, $250; student loan, $200; savings, $500; food, $200 = $1,700; Amount left over = $2,800 (income less necessary expenses). The remaining $2,800 is their
A) gross income.
B) personal income.
C) disposable income.
D) discretionary income.
E) profit.

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 necessities are paid. In this case, the $2,800 is what remains after necessary expenses, making it discretionary income.

Leigh and Rob Prepared a Household Budget in an Attempt