and Nancy Johnson prepared a household budget in an attempt to manage their money better.As part of their budgeting process,Carl and Nancy prepared the following list:
Monthly Income (after taxes): $4,500
Monthly Expenses (Necessities)
Rent: $550
Auto Loan: $250
Student Loan: $200
Savings: $500
Food: $200
Total Monthly Expenses: $1,700
Amount Left Over: $2,800
After totaling their necessary expenses,which equals $1,700,Carl and Nancy subtracted that amount from their monthly income of $4,500.The Johnsons were happy to realize that they had $2,800 left over,which is their __________.

Question

Quizplus · Accepted Answer

The amount left over after deducting the necessary expenses from the monthly income is known as discretionary income. It is the income that can be used to pay for non-essential items such as entertainment, vacations, hobbies, etc. The Johnsons have $2,800 left over, which is their discretionary income.

And Nancy Johnson Prepared a Household Budget in an Attempt