discretionary income
noun
: income that is left after paying for things that are essential, such as food and housing
She has enough discretionary income to pay for a nice vacation each year.
Examples of discretionary income in a Sentence
Recent Examples on the Web
This is where a lot of American consumer discretionary income is going right now.
—
Boaz Sobrado,
Forbes.com,
30 June 2026
The plan, which is geared toward borrowers with high debt relative to their income, can allow monthly payments of either 10% or 15% of one’s discretionary income, with loan forgiveness eligibility within 25 years.
—
Erik Ortiz,
NBC news,
28 June 2026
The monthly bills on PAYE, on the other hand, are capped at just 10% of a borrower's discretionary income.
—
Annie Nova,
CNBC,
16 June 2026
For loans taken out after July 1, 2014, monthly payments will be based on 10% of discretionary income and spread over 20 years before the remainder is forgiven.
—
Cory Turner,
NPR,
10 June 2026
See All Example Sentences for discretionary income
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Boaz Sobrado,
Forbes.com,
30 June 2026
The plan, which is geared toward borrowers with high debt relative to their income, can allow monthly payments of either 10% or 15% of one’s discretionary income, with loan forgiveness eligibility within 25 years.
—
Erik Ortiz,
NBC news,
28 June 2026
The monthly bills on PAYE, on the other hand, are capped at just 10% of a borrower's discretionary income.
—
Annie Nova,
CNBC,
16 June 2026
For loans taken out after July 1, 2014, monthly payments will be based on 10% of discretionary income and spread over 20 years before the remainder is forgiven.
—
Cory Turner,
NPR,
10 June 2026
See All Example Sentences for discretionary income
Cite this Entry
“Discretionary income.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discretionary%20income. Accessed 6 Jul. 2026.
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