What economic term is defined as money remaining after all necessary expenses are covered?

The term that describes money remaining after all necessary expenses are covered is discretionary income. This refers to the portion of an individual's income that is left over after accounting for essential expenses such as housing, food, utilities, and taxes. Discretionary income can be used for non-essential items such as entertainment, vacations, or savings, providing flexibility in how individuals choose to spend that remaining money.

Discretionary income contrasts with other financial concepts. For instance, net income generally refers to the amount of money earned after taxes and other deductions, which may include necessary expenses but is not limited to it. Savings denote the part of income that is set aside and not spent, while a budget surplus refers to a situation where income exceeds expenses but does not specifically limit itself to money available after necessary spending. Thus, the correct term for the money left after essential expenses is clearly discretionary income.