real income

American  

[ree-uhl, reel] / ˈri əl, ril /

noun

1. the amount of goods and services that money income will buy.

---

real income Cultural  

1. Income measured in terms of the goods and services it can buy.

---

Etymology

Origin of real income

First recorded in 1925–30

Example Sentences

See Examples For:

real income

A study by financial advising company SmartAsset of the 94 largest population centers in the U.S. looked at real income growth in 2024, and the Orange County neighborhoods were in the top 15.

From Los Angeles Times ● Aug. 12, 2026

“If Brent crude remains above $100 a barrel for long, the tax-refund buffer will eventually be exhausted, real income growth will compress further, and aggregate demand will slow.”

From Barron's ● May 4, 2026

“On Jan. 1, working Americans will reset their withholding levels, and they will have substantial real income increases,” Bessent said.

From MarketWatch ● Nov. 21, 2025

Then there is what economists call the precautionary motive: the money put to one side by those worried about losing their job or suffering a fall in real income as prices surge.

From The Wall Street Journal ● Nov. 10, 2025

Allowing for the expected growth in population, this would mean that the real income of the average family in the year 2000 A.D. would be about three times what it is today.

From State of the Union Address by Harry S. Truman