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February 18, 2020

Time Value of Money

The time value of money (TVM) is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity. This core principle of finance holds that provided money can earn interest, any amount of money is worth more the sooner it is received (Chen, 2020)
Chen J (2020, January 24). Time Value of Money. Retrieved from https://www.investopedia.com/terms/t/timevalueofmoney.asp
Some people keep money under the mattress, some people choose to put their money into banks and some people choose to invest their money in stocks and bonds. Which ways would you choose to handle your money? Is the time value of money an important component when it comes investing or figuring out what to do with your money? Why or Why not? What advice would you give to future generations?

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