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 essential expenses like rent, bills, and car payments is usually from disposable income, which is the income left after taxes and necessary expenses. On the other hand, the money spent on non-essential items like concert tickets and new clothes is from discretionary income, which is the income left after taxes and necessary expenses and any savings or investments. Therefore, the best choice would be D - Disposable income for essential expenses and discretionary income for non-essential expenses.

Lindsay Was Reviewing Her Bank Statement for Last Month