What are considered discretionary expenses?

Discretionary expenses are often defined as nonessential spending. This means a business or household is still able to maintain itself even if all discretionary consumer spending stops. Meals at restaurants and entertainment costs are examples of discretionary expenses.

What is considered discretionary spending?

Discretionary spending refers to non-essential items, such as recreation and entertainment, that consumers purchase when they have enough income left over after paying the necessary expenses such as the mortgage and utilities.

What are examples of non discretionary expenses?

Non-discretionary spending is essential and non-negotiable spending defined within a budget. What are Non-Discretionary examples? Examples of these expenses include: rent, food, or mortgage payments. In contrast, discretionary spending refers to non-essential expenses, such as hobbies and travel.

Is gas a discretionary expense?

Variable expenses are defined as such because the amount you spend may vary each month. Although variable costs are quite often discretionary expenses, some may be necessities. Buying gas for your car each month is a variable expense, as are car repairs and maintenance.

What is discretionary example?

adjective. The definition of discretionary is something that you use as desired or needed. When you have petty cash available to you to use, the money you spend is an example of discretionary spending.

Which two expenses are considered variable non-discretionary expenses?

Nondiscretionary expenses are things you must pay for or buy, including the following: Food. Rent or mortgage. Car payments.
Variable expenses include the following:

• Food.
• Utilities.
• Entertainment.
• Vacations.

What are discretionary goods?

Discretionary products are any goods that are not necessary and thus not required to enjoy basic living conditions. In contrast, those products that are necessities of life such as food, drugs, medical supplies, hygiene or personal care products, often classified as consumer staple.

What is discretionary spending give an example?

Discretionary spending is what the President and Congress must decide to spend for the next fiscal year through annual appropriations bills. Examples include money for such programs as the FBI, the Coast Guard, housing, education, space exploration, highway construction, defense, and foreign aid.