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 $2,800 they had remaining is their
A) gross income.
B) personal income.
C) disposable income.
D) discretionary income.
E) profit.

Question

Quizplus · Accepted Answer

The amount left over after expenses is considered discretionary income, which is the money available for non-essential spending or saving. Therefore, option D is the best choice as it describes the remaining amount as discretionary income.

Leigh and Rob Prepared a Household Budget in an Attempt