Disposable & Discretionary Income
Gain insight into disposable versus discretionary income. When it comes to getting a true grasp of your customer’s available funds, you must first understand both their disposable and their discretionary income.
Need versus want
The difference between disposable and discretionary income is basically the difference between need and want. Disposable income is essentially after-tax income, whereas discretionary income is the money that remains for spending or saving after households pay necessities. These necessities consist of taxes, food, housing, transportation, apparel, and out-of-pocket health care.
The Pitney Bowes Business Insight Disposable and Discretionary Income database provides you with the data to understand these available funds.
Disposable income
The Pitney Bowes Business Insight Disposable and Discretionary Income database subtracts tax estimates, derived in part from Statistics Canada’s Survey of Labor and Income Dynamics, to achieve disposable income estimates.
Discretionary income
To determine discretionary income, Pitney Bowes Business Insight’s Disposable and Discretionary Income database begins with the disposable income figure and subtracts household necessity spending estimates. The estimate of household expenditures comes from our Canadian Expenditures, which are derived from linking Statistics Canada’s Survey of Household Spending with Pitney Bowes Business Insight’s segmentation data product.
Variables
- Total Households
- Average Discretionary Income
- Average Disposable Income
- Average Household Income
