Final dates! Join the tutor2u subject teams in London for a day of exam technique and revision at the cinema. Learn more


Disposable Income

Disposable income is the amount of money that individuals have available to spend or save after paying their taxes and other mandatory expenses, such as social security contributions.Here are some key points about disposable income:

  • Income minus taxes and mandatory expenses: Disposable income is the amount of money that remains after subtracting taxes and mandatory expenses from an individual's income.
  • Discretionary spending: Disposable income is often used for discretionary spending, such as leisure activities, vacations, and entertainment.
  • Consumption: Disposable income is a key factor in consumer spending and is often used as an indicator of consumer confidence and economic growth.

Income left for spending after taxes have been deducted from gross income.

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.