Question

“A dollar today is more than a dollar tomorrow.”

this concept is the basis of time concept of money. What does it mean to you? Investigate and then report back on how learning about applying this concept means for saving money for future goals.

Answer 1

“A dollar today is more than a dollar tomorrow” is based on the concept of “time value of money” which says that all the money that we have today/present time is always worth more of the similar quantity of money tomorrow/future time in term of its potential capacity to do earning. The concept have a proven path with the present money attached with the interest earned on it, making it more worthy than future time money. A money which is being received sooner will worth more than the money received at later stage. The concept stands true and well proven only when the interest factor is attached to present time money, otherwise if the money is keep idle then there is no difference between both times money.