discretionary income


Also found in: Dictionary, Wikipedia.

Discretionary income

The amount of income a consumer has available after purchasing essentials such as food and shelter.

discretionary income

Individual income that is not allocated to expenditures for necessities such as food and shelter. Increasing amounts of discretionary income are especially favorable for the prospects of firms that sell luxury or leisure items and services.
References in periodicals archive ?
Families had PS146 a week of discretionary income last month, meaning they were PS1 a week better off than a year ago but compared with November 2010, they are still PS12 a week worse off.
Discretionary income is calculated as the income left over after paying for basic household expenses.
This, combined with weak earnings growth, is putting downward pressure on discretionary incomes.
Healthy gains in real household income will boost discretionary income.
The Service has indicated its intent to deny exclusions for gifts to holders of Crummey withdrawal powers when (1) the powerholders have no beneficial interest in the trust other than their withdrawal powers; (2) the powerholders hold only contingent remainder interests or discretionary income interests; or (3) the facts and circumstances indicate a prearranged understanding that the powerholder will not exercise his or her withdrawal power.
Urban consumers have experienced modest but steady growth in real income in recent years and that has contributed to the formation of a fledgling middle class with a moderate level of discretionary income.
Although LTC facilities realized the value of the JCAHO accreditation process, we learned that, with less and less discretionary income available at LTC facilities, many were having trouble maintaining voluntary accreditation.
Wesley Combs, president of Witeck-Combs, says part of the reason for the disparity may be that gays are significantly less likely to have child-rearing expenses and tend to have more discretionary income than straight consumers.
Those who watch cable have higher salaries, educational levels and discretionary income.
Discretionary income for people with disabilities is $176 billion.
With an average household discretionary income of $20,402, the middle-aged represent more than $287 billion in buying power, the study said.
Can a "sprinkling" trust, providing for discretionary income or principal distributions among children or grandchildren, be funded with S corporation stock?