Which of the following is an example of personal discretionary spending?

Personal discretionary spending refers to expenses that are non-essential and can be adjusted or eliminated based on an individual's choices. This type of spending is typically associated with luxuries or non-necessary items that enhance quality of life, rather than basic needs.

Vacations clearly fit this definition, as they are often planned based on personal preference and leisure rather than necessity. People can choose to travel, take trips, or spend money on vacations based on their available income and personal desire, thus making it a quintessential example of discretionary spending.

In contrast, rent, groceries, and utility bills represent essential expenses that are necessary for daily living. Rent is required for housing, groceries are needed for food, and utility bills cover basic services like water and electricity. While these expenses are important, they do not fall under discretionary spending since they are crucial for maintaining a standard of living.