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; Total Monthly Expenses = $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 refers to the money that is left over after all necessary expenses are paid and can be used for non-essential purchases or savings.

Jason and Lucy Prepared a Household Budget in an Attempt