What are discretionary expenses?

Discretionary expenses are the fun parts of your money that you get to choose how to spend.

Imagine you have a piggy bank full of coins from your allowance. Some of those coins go to things you have to do, like buying lunch or paying for school supplies, these are fixed expenses. But some coins go to things you can choose to buy or not, like candy after lunch, a toy on the weekend, or a special snack at the store. These are your discretionary expenses.

Think of it like picking your favorite treat from the vending machine. You don’t have to buy that chocolate bar, but if you see it and really want it, you can use some of your coins to get it. That’s what discretionary expenses are: things you can choose to spend money on, because they’re not necessary for you to live or do your daily tasks.

You might have more discretionary expenses if you have more coins in your piggy bank, just like how people with more money often have more fun choices to make!