Jason and Lucy 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 $2,800 they had left over is their
A)gross income.
B)personal income.
C)disposable income.
D)discretionary income.
E)profit.

Question

Quizplus · Accepted Answer

The $2,800 left over after necessary expenses is their discretionary income, which is the amount of money they have available to spend on non-essential items, such as entertainment, travel, or luxury purchases. Discretionary income is a key factor in determining a household's standard of living and can be used to prioritize financial goals or plan for future expenses.

Jason and Lucy Prepared a Household Budget in an Attempt