Discretionary spending examples: 22 things to look at
What counts as discretionary spending, with examples sorted into wants and the gray ones where a need and a choice share a bill.
Checked October 22, 2026
What discretionary spending means
Think of it as the spending you get to decide on. Cambridge treats it as consumer spending beyond necessities, and names food, clothes and fuel as necessities. The Consumer Financial Protection Bureau does not define "discretionary" in its glossary, but it defines the two sides you would use to sort it. Its needs start with what people must have to survive, such as food, clothing and shelter, and also cover what a person needs for work and for protecting their money and property. Wants are the upgrades and nice-to-haves that living, earning and protecting what you have do not depend on.
This page treats discretionary spending as, roughly, the wants. For the plain meaning see discretionary spending.
Food and drink
Eating is a need. Paying someone else to cook it is a choice.
- Restaurants and dining out (want). You could cook the same meal at home.
- Takeout and delivery (want). The delivery and service fees are the part you chose.
- Coffee shops (want). A daily one is small each time and large over a month.
- Alcohol and bars (want). Not required for living.
- Premium groceries and snacks (gray). Groceries are a need. Brand and extras above a basic basket are not.
Entertainment
The easiest to cut and often the most enjoyed.
- Streaming services (want). Easy to pause one at a time.
- Movies, concerts and events (want). One-off tickets.
- Video games and apps (want). Purchases and in-app spending.
- Hobbies and gear (want). Includes the supplies that pile up.
- Books, music and magazines (want). A library card often covers the first.
Shopping
Clothes are a need in the Cambridge list. New ones every season are not.
- Clothes beyond what you need (gray). Work clothes and a winter coat are needs. The tenth jacket is not.
- Gadgets and a newer phone (want). An upgrade, in the CFPB's sense of the word.
- Home decor and extras (want). Nice to have.
- Gifts (gray). Chosen, but often expected. Plan them on a calendar.
Travel and leisure
Big amounts, a few times a year.
- Vacations (want). Flights, rooms and meals out.
- Weekend trips (want). Smaller, more often.
- Rideshare for fun (want). A ride to a bar is a want. A ride to work with no other way is a need.
Personal
Where a need and a want share one bill.
- Salon, spa and nails (gray). A haircut may be a need for work. The extras are not.
- Gym or fitness classes (gray). Health is a need. The boutique studio is a choice.
- Subscription boxes (want). Easy to forget about.
- Donations beyond what you planned (gray). A value, not a bill. Some budgets give it its own line.
- Pet extras (gray). Food and vet care are needs. Toys and treats are not.
Needs vs wants: the examples side by side
| Example | Side |
|---|---|
| Restaurants and dining out | Want |
| Takeout and delivery | Want |
| Coffee shops | Want |
| Alcohol and bars | Want |
| Premium groceries and snacks | Gray: part need, part want |
| Streaming services | Want |
| Movies, concerts and events | Want |
| Video games and apps | Want |
| Hobbies and gear | Want |
| Books, music and magazines | Want |
| Clothes beyond what you need | Gray: part need, part want |
| Gadgets and a newer phone | Want |
| Home decor and extras | Want |
| Gifts | Gray: part need, part want |
| Vacations | Want |
| Weekend trips | Want |
| Rideshare for fun | Want |
| Salon, spa and nails | Gray: part need, part want |
| Gym or fitness classes | Gray: part need, part want |
| Subscription boxes | Want |
| Donations beyond what you planned | Gray: part need, part want |
| Pet extras | Gray: part need, part want |
The gray ones
Most arguments about discretionary spending are about a handful of lines where a need and a choice sit in the same bill: groceries, clothes, a phone plan, a gym, a haircut, gifts. The way out is to split the line in two. A basic grocery basket is a need and the rest is a want. A phone plan that gets you to work is a need and the premium tier is a want. You end up with a smaller, honest wants number.
The bills on the other side of the line are the fixed expenses: rent, insurance, loan payments. Those are rarely discretionary.
How the budget rules treat it
The 60/20/20 rule gives wants their own 20% of take-home. The 70/20/10 rule has one 70% share for all spending, needs and wants together, which leaves you to decide the split inside it. For a couple, the wants are often the part each person keeps on their own, with the shared bills split by a rule first. Try the fair split calculator for the shared part, and see the budget examples for a whole month worked out.
Questions people ask
What are examples of discretionary spending?
Dining out, takeout, streaming services, hobbies, concerts, vacations, new clothes beyond what you need, gifts, a gym you rarely use, and upgrades like a newer phone. They are things you could cut without losing food, shelter or income.
What is the difference between discretionary and non-discretionary spending?
Cambridge defines discretionary spending as spending on things other than necessities, and gives food, clothes and fuel as examples of necessities. Non-discretionary is the necessary side. Which other bills belong there, like housing or insurance, is this page's reading.
Is groceries discretionary spending?
The basic grocery bill is a need. Cambridge lists food among the necessary things. The extras, like snacks, premium brands and takeout, are discretionary.
Is a phone bill discretionary?
A basic plan most people need for work and for reaching others is closer to a need. A top-tier plan or a new phone every year is closer to a want. It is a gray one, and you decide where your line sits.
Is saving discretionary spending?
Not in the usual use of the term. Saving is money you keep, not money you spend, so it is counted on its own line. Many budgets set it first so it is not squeezed by the wants.
How much should discretionary spending be?
The budget rules set their own shares. The 60/20/20 rule puts 20% of take-home on wants. The 70/20/10 rule has one 70% spending share for needs and wants together. See the rule pages for how each is worked.
Sources
2 sources · read October 22, 2026
Every number on this page comes from dictionary.cambridge.org and consumerfinance.gov. If a source has changed since, the source is right.
Wonderful gives general information. It isn't a financial or tax advisor.