Which of the following demographics is most likely to have greater discretionary income?

Empty nesters are individuals or couples whose children have grown up and moved out of the family home, leaving them with fewer financial responsibilities associated with raising children. This demographic often experiences greater discretionary income for several reasons.

First, empty nesters typically no longer incur the significant costs associated with child-rearing, such as education, healthcare, and daily expenses. As a result, they often find themselves in a more comfortable financial situation. They may also have higher earning potential, as many in this group are in their peak earning years, which can contribute to an increase in disposable income.

Furthermore, empty nesters may have lower housing costs, particularly if they have paid off their mortgages or are looking to downsize to a smaller, more manageable living space. This combination of reduced expenses and possibly higher income leads to greater discretionary spending capacity, allowing them to allocate funds toward leisure activities, travel, and other non-essential purchases.

In contrast, the other demographics – including millennials living with parents, college students, and young couples with children – often face financial constraints that limit discretionary income, such as student loans, childcare expenses, and the costs of maintaining a household.