DEFINITION OF CONSUMER INCOME

Amount of income remaining after taxes and

living expenses have been deducted from wages.
This represents the amount of money a person has
to spend, save or invest.
Consumer income can be measured in terms of gross
income, disposable income and discretionary income:
DEFINITION OF GROSS INCOME
An individual's total personal income before taking taxes
and deductions into account.
DEFINITION OF DISPOSABLE INCOME
Disposable income is total personal income minus
personal current taxes.
DEFINITION OF DISCRETIONARY INCOME
Discretionary income is disposable income (after-tax
income), minus all payments that are necessary to meet
current bills. It is total personal income after subtracting
taxes and typical expenses (such as rent or mortgage,
utilities, insurance, medical, transportation, and , etc.) to
maintain a certain standard of living. It is the amount of
an individual's income available for spending after the
essentials (such as food, clothing, and shelter).




EFFECT OF CONSUMER INCOME
Strength:
-people can achieve maximum satisfaction for spending
by priority.
-help low-income people.

Opportunity:
-governments can promote economic development of the
country.

DEFINITION OF SPENDING PATTERNS
The amount of money spent by households in an
economy. The spending includes durables, such as
washing machines, and non-durables, such as food. It is
also known as consumption, and is measured monthly.
EFFECT OF SPENDING PATTERNS
opportunity:
- People can buy luxury goods desired.

threat:
-bankruptcy rate among people will increase.
-the economy country will also be endangered.