Entity: DISPOSABLE-INCOME
Disposable income refers to the amount of money that an individual or household has available to spend or save after paying taxes. It is the income left over after essential expenses such as food and housing have been covered.
DISPOSABLE-INCOME
Etymology
The term 'disposable income' originated from the concept of income that is available for discretionary spending or saving after essential expenses and taxes have been accounted for.
Definition
Disposable income is the amount of money that an individual or household has available to spend or save after paying taxes. It is the income left over after essential expenses such as food and housing have been covered.
Historical Context
The concept of disposable income has been a key metric in economics and personal finance, reflecting the financial well-being and spending power of individuals and households.
Cultural Significance
Disposable income plays a crucial role in consumer behavior, economic growth, and financial planning. It influences purchasing decisions, savings rates, and overall economic stability.
Related Concepts
- Personal income
- Taxes
- Savings
See Also
Disposable income is the portion of a person's income remaining after deducting taxes, which can be used for spending or saving.