Question

Income that is available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter is known as:__________

Answer 1

The correct answer is discretionary income.

Discretionary income, in its most basic definition, is the money left over after covering essential expenses including taxes, daily living costs, and household bills.

What distinguishes disposable income from discretionary income?

After all federal, state, and local taxes have been paid, your remaining funds are known as disposable income. Contrarily, discretionary income is the money you still have after paying all of your basic living expenses and taxes.

What is covered by discretionary income?

The money you have left over from your post-tax salary after paying for necessities like rent, utilities, and food is known as discretionary income. It is what you use to make non-essential purchases during the month (often referred to as discretionary expenses).

To know more about Discretionary income, visit: brainly.com/question/26766185

#SPJ4