Discretionary purchases refer to goods and services that are not essential for survival or basic needs, but are optional and can be chosen based on personal preferences or desires.
Non-Discretionary Purchases: Non-discretionary purchases are essential goods and services that are necessary for survival, such as food, housing, and healthcare.
Disposable Income: Disposable income is the amount of money an individual has available to spend or save after taxes have been deducted from their income.
Luxury Goods: Luxury goods are high-end products or services that are not considered necessities but provide additional comfort or prestige. Examples include designer clothing, luxury cars, and expensive vacations.