The terms disposable and discretionary income are sometimes used interchangeably, but there is a big difference in terminology for people who work in the financial, banking, or economic worlds.

As mentioned above, higher disposable income means higher discretionary income, and discretionary income is what consumers spend on non-essential products and services.

What Is Discretionary Income? A person’s discretionary income is what they have left over from their disposable income (i.e., income after taxes) after all necessities have been paid for.

To offer future student borrowers relief, Biden plans to cut their discretionary income. How does he plan to do that and how will that help?

Disposable income is different from discretionary income, which is what's left after the necessary things like groceries, rent, and other essential cost-of-living items are taken out of your income.

Discover how to optimize your discretionary income and achieve financial freedom with practical budgeting tips, investment strategies, and expert insights.

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The lowest-earning households saw their disposable income grow for the first time since August 2021, figures suggest. The disposable income for these households grew by 4.9% in February, largely ...

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In contrast, discretionary income was £18.56 a week higher in February than a year before for the average UK household – at £231 – marking eleven consecutive months of growth.