Intertemporal Consumption

Intertemporal consumption refers to how individuals make decisions about spending or saving money across different periods of time—today versus the future. It involves balancing the desire for immediate satisfaction against the benefits of having resources available later. For example, choosing to save part of your income now allows you to enjoy more comfort or security in the future. These decisions are influenced by factors like interest rates, personal goals, and expectations about future needs. Overall, intertemporal consumption is about managing resources over time to optimize well-being and financial stability.