ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Money that is in savings
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money that is left over
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Either A or B
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None of the above
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Detailed explanation-1: -Discretionary income is the amount of money left for an individual to spend or save after paying taxes and for personal needs, such as food, lodging, and clothes. Discretionary income includes money spent on luxury goods, holidays, and non-essential goods and services.
Detailed explanation-2: -Budget surplus– A situation where money is left over after all obligations have been paid.
Detailed explanation-3: -Disposable income is net income. It’s the amount left over after taxes.
Detailed explanation-4: -Discretionary income is the amount of money left over after accounting for taxes and personal necessities, including food, housing, etc. In other words, it’s the available income you can use for saving, investing, or spending on non-essentials, which can include anything from eating out to taking a vacation.
Detailed explanation-5: -Pertaining to the Income-Contingent Repayment Plan, discretionary income is the difference between your annual income and 100 percent of the poverty guideline for your family size and state of residence. The poverty guidelines are maintained by the U.S. Department of Health and Human Services.