Julia 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. Julia had also bought tickets to an Ariana Grande concert and new clothes to wear to the concert. The money spent on Julia'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

Disposable income refers to the money that someone has left over after paying for their basic necessities, such as rent, bills, and groceries. Discretionary income, on the other hand, refers to any money that is left over after paying for all necessary expenses and can be spent on non-essential items, such as concert tickets and new clothes. Therefore, the money spent on Julia's rent, car, electric, and phone bills was from her disposable income, while the money spent on the concert tickets and new clothes was from her discretionary income.

Julia Was Reviewing Her Bank Statement for Last Month