Discretionary expense: meaning and definition

The definition at a glance

An expense that is not essential to meet basic needs and can be reduced or postponed according to the budget.

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A plan for expected income and expenses over a period. It helps allocate money to needs, commitments and goals.

An amount or financial obligation that a person or family still needs to pay to another person, company or institution.

An expense related to a basic need or important commitment, such as housing, food, health care and transportation.