Fran recently got her first job. Now she’s constructing her first budget of personal expenses. Which source of income data should she use to estimate future income?

Question

(1 point)
Responses

after-tax income

discretionary income

adjusted income

income from real estate sales

Answer 1

The correct answer is after-tax income. This refers to the amount of income that Fran will have after taxes and other deductions have been taken out. It represents her actual take-home pay and should be used to estimate her future income for budgeting purposes.