Just another 5 year-old who needs help.
In: Economics
It’s the financial version of “a bird in the hand is worth two in the bush.”
Money you have right now is worth more than the same amount in the future because of its potential to be used now and/or grow.
Yes interest is one potential use, but you can also use it to pay off debt now vs later, purchase real estate or other assets that can appreciate, start a business that can be grown, etc.
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