ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Having payroll taxes deducted from each paycheck.
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Contributing to a emergency savings account.
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Spending less than total income each month.
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Paying credit card bills at the end of the month.
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Detailed explanation-1: -Discretionary income is the amount of an individual’s income that is left for spending, investing, or saving after paying taxes and paying for personal necessities, such as food, shelter, and clothing. Discretionary income includes money spent on luxury items, vacations, and nonessential goods and services.
Detailed explanation-2: -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.
Detailed explanation-3: -Discretionary Spending These programs range from transportation, education, housing, and social service programs, as well as science and environmental organizations.
Detailed explanation-4: -Discretionary income is the money you have left over after paying taxes and necessary cost-of-living expenses. Discretionary income and disposable income aren’t the same thing. Disposable income is simply the amount of money you have left after paying taxes.