Net Income

Also known as disposable income. Income that remains after all taxes have been deducted. The money you have available to spend.

Mean

The average of a set of data.

Median

The middle value of the data.

Mode

The data value that occurs the most.

Essential Expense

An expense that cannot be eliminated from day-to-day life.

Discretionary Expense

An expense that is considered non essential

Outlier

A value in the data set that is extremely different from the other values.

Skewed Data Set

Caused by an outlier. The mean of the data is not equal to the median. The median is not as affected by the impact of outliers.

Bimodal

When a data set has 2 modes.

Gross Income

Income before all taxes are deducted.