What is the amount of cash available to a household for spending after taxes and bills called?

The term that describes the amount of cash available to a household for spending after taxes and bills is disposable income. This concept is essential in personal finance as it represents the actual funds that an individual or household can use for discretionary spending, savings, or investing following mandatory expenses like taxes and necessary bills.

Disposable income is a key indicator of a household's economic well-being, as it influences consumption patterns and overall quality of life. By focusing on the funds left after fulfilling essential financial obligations, it provides a clear picture of the resources available for lifestyle choices, including entertainment, vacations, or savings for future investments.

In contrast, terms like net income generally refer to earnings after deductions but before accounting for bills, making it a broader term. Free cash flow is primarily used in the context of businesses to describe the cash generated after capital expenditures, and surplus income might imply any cash left over after expenditures without clearly specifying the context of taxes and bills. Thus, disposable income is specifically defined to address the financial resources available for personal use after necessary expenses have been met.