discretionary spending
Discretionary spending refers to expenses that are optional and not essential for basic living or operations, allowing flexibility in budgeting.
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Definition
B2Personal Finance
(general)Money spent on non-essential items or activities like dining out, entertainment, or hobbies.
Example
- After paying rent and bills, he used his discretionary spending for a weekend trip.
- She cut back on discretionary spending to save more money.
C1Government Finance
(technical, US)Portion of the federal budget controlled by lawmakers through annual appropriations, covering areas like defense, education, and transportation.
Example
- Congress debates the discretionary spending allocations every fiscal year.
- National defense is a significant part of the discretionary spending in the US budget.