Discretionary income is typically used to pay for things like what?

Discretionary income refers to the portion of an individual's income that is left after paying for essential expenses such as housing (rent or mortgage), utilities, food, and insurance. It is the money that a person can spend on non-essential items or services, such as entertainment, dining out, hobbies, travel, and savings or investments.

In this context, food is categorized as an essential expense, akin to rent, utilities, and insurance. While food is necessary for daily living, discretionary income is meant for expenditures that are not essential for survival or basic functioning. Therefore, discretionary income is typically used for items or activities that are beyond basic needs, which allows individuals to enjoy a higher quality of life or leisure.