What Is Discretionary Spending In A Budget?

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 discretionary spending within a budget quizlet?

Discretionary Spending. 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 …

What is an example of discretionary spending?

In American public finance, discretionary spending is government spending implemented through an appropriations bill. … Some examples of areas funded by discretionary spending are

national defense, foreign aid, education and transportation

.

What are 4 examples of discretionary spending?

Non-defense discretionary spending includes a wide array of programs such as

education, training, science, technology, housing, transportation, and foreign aid

.

What does discretionary spending pay for?

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 can discretionary funds be used for?

Faculty discretionary funds are available to

pay for expenses incurred in support of professional activities performed while

at SPH. … Additionally, discretionary funds can be used to clear deficits in other accouncts or for faculty salary coverage if approved by the faculty member.

Which is an example of discretionary?

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. Left to or regulated by one’s own discretion or judgment.

Is social security discretionary spending?

The discretionary budget and taxes are the two main tools of discretionary fiscal policy. The discretionary budget

does not include Social Security

, Medicare, or Medicaid. These are part of the mandatory budget. These programs were authorized by previous Acts of Congress.

What is mandatory spending give an example?

Outlays for the nation’s three largest entitlement programs (Social Security, Medicare, and Medicaid) and for many smaller programs (

unemployment compensation

, retirement programs for federal employees, student loans, and deposit insurance, for example) are mandatory spending.

Is Internet a discretionary expense?

Cutting Down Discretionary Spending

This worksheet consists of bills that are easy to cut out if you had to reduce your spending. That can be a matter of personal opinion, as some people find it hard to imagine that some of these items, like cable television and home internet, are discretionary.

Who determines discretionary spending?

Discretionary spending is determined on an annual basis by

Congress and the president

through enactment of appropriations.

What types of items will your discretionary spending cover?

Discretionary income is the amount of an individual’s income that is left for spending, investing, or saving after paying taxes and paying for personal necessities, such as food, shelter, and clothing. Discretionary income includes money spent on

luxury items, vacations, and nonessential goods and services

.

What is a good discretionary income?

“The beauty of the 50-20-30 rule is that it sets you free more than restricts you,” Omoth says. “Yes, you’re putting aside 50 percent of income for necessities and another 20 percent for financial goals, but it leaves you a healthy

30 percent of your income

to use as discretionary money. It’s fun money, if you will.”

Are groceries considered discretionary spending?

While non-discretionary expenses are considered mandatory—housing, taxes, debt, and groceries—discretionary expenses

are any costs incurred above and beyond what is deemed necessary

. These are generally considered wants, while non-discretionary expenses are usually referred to as needs.

How do you spend discretionary income?

1. Spending. When individuals and households spend more of their discretionary income on goods and services, vacations, luxury items, and other nonessential items, money is funneled towards businesses that provide those goods and services. …
2. Investing. …
3. Saving.

What is another word for discretionary income?