discretionary spending

Discretionary spending refers to expenses that are not essential for basic living, like housing and food. It includes spending on non-essential items or services, such as entertainment, dining out, vacations, and luxury goods. This type of spending is often found in personal budgets and government budgets, where it can be adjusted based on priorities and available funds. For individuals, it allows for personal choices and enjoyment beyond necessary expenses, while for governments, it encompasses funding for projects and programs that are important but not mandatory.