discretionary income definition

discretionary income

Portion of an entity's income available for saving, or spending on non-essentials. It is what remains after expenses for basics (such as food, clothing, shelter, utilities) and prior commitments (such as school fees and loans) are deducted from the disposable income. Total amount of discretionary income in an economy is a key indicator of the level of possible economic growth and is the target of all commercial advertising. Also called hot money.

discretionary income is in the Advertising, Marketing, & Sales, Decision Making, Problem Solving, & Strategy and Economics, Politics, & Society subjects.

discretionary income appears in the definitions of the following terms: DINKS, disposable income, income effect, discretionary buying power and hot money

This content can be found on the following page:

http://www.businessdictionary.com/definition/discretionary-income.html