real income

American  

[ree-uhl, reel] / ˈri əl, ril /

noun

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

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real income Cultural  

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

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Etymology

Origin of real income

First recorded in 1925–30

Example Sentences

“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

That pushes real income lower as wage growth slows.

From Barron's • Nov. 11, 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

"However, softer earnings growth, higher inflation, tighter fiscal policy, and the lagged impact of past interest rate rises for some mortgagors point to much weaker real income growth moving forward."

From BBC • Sep. 5, 2025

This subjective value of money rests on the experience of each individual in making purchases—rests on the prices of consumption goods, determined by the relation between real income and money income.

From The Value of Money by Anderson, Benjamin M.