On a pay stub, you'll often notice various deductions which can be broadly categorized as either mandatory vs discretionary spending items. Mandatory spending refers to those expenditures that are required by law, such as federal and state taxes, Social Security, and Medicare deductions. This type of spending is compulsory and typically appears on everyone's pay stub, regardless of where an individual works or their job position. On the other hand, discretionary spending refers to optional expenditures. These are not legally mandated and may include things such as health insurance, retirement contributions, or loan repayments. An individual has the ability to choose whether to participate in these types of deductions or not. It is important to note that these tend to vary greatly among different workers depending on their individual preferences and financial strategies.