What term describes the income available for spending and saving after purchasing necessities like food and shelter?

The term that describes the income available for spending and saving after purchasing necessities like food and shelter is known as discretionary income. This is the amount of money that individuals can allocate to non-essential items and services after covering their basic living expenses, such as housing, groceries, and utilities. Discretionary income allows consumers to make choices about leisure spending, entertainment, travel, and luxury items, reflecting their personal preferences and financial priorities.

On the other hand, disposable income refers to the total income available to individuals after taxes but before any spending on necessities, whereas net income is the amount remaining after all deductions, including taxes and other withholdings, which may not directly indicate the portion available for discretionary spending. Gross income is the total income before any deductions or taxes. Understanding these distinctions is crucial in marketing, as they help businesses gauge consumers' purchasing power and tailor their strategies accordingly.