Lindsay was reviewing her bank statement for last month. She had paid her rent, her car payment, electric and phone bills, and made three trips to the grocery. Lindsay had also bought tickets to a Katy Perry concert and new clothes to wear to the concert. The money spent on Lindsay's rent, car, electric, and phone bills was likely from her ____ , while the money spent on the concert tickets and new clothes was from her _____.

Question

Quizplus · Accepted Answer

The money spent on rent, car payment, electric and phone bills is typically considered essential expenses and would come out of one's disposable income. The money spent on concert tickets and new clothes for a discretionary expense, meaning it is not an essential expense and would come from discretionary income. Therefore, the best answer is D) disposable income for essential expenses and discretionary income for non-essential expenses.

Lindsay Was Reviewing Her Bank Statement for Last Month