5 Why is a dollar today worth more than a dollar a year from now?

A dollar today is worth more than a dollar a year from now due to the concept of time value of money. This principle asserts that money has the potential to earn returns over time, meaning a dollar invested today can grow through interest or investment gains. Additionally, factors like inflation erode purchasing power, making a dollar's value decrease over time. Therefore, receiving a dollar today allows for greater opportunities and financial growth compared to receiving it in the future.