Temporal Discounting

Temporal discounting refers to the tendency to value immediate rewards more highly than future rewards. For example, when faced with a choice between receiving $50 today or $100 in a year, many people prefer the immediate $50, even though waiting offers more money. This phenomenon reflects our natural inclination to prioritize short-term benefits over long-term gains, influencing decisions in various aspects of life, such as saving money, health choices, and planning for the future. Understanding temporal discounting helps us recognize why we might struggle to make decisions that are better for us in the long run.