These resources are brought to you by the Cooperative Extension System and your Local Institution

Personal Finance Home

Have a question? Try asking one of our Experts

Time Value of Money

Last Updated: November 15, 2006

View as web page


The time value of money (TVM) is the idea that money available at the present time is worth more than the same amount 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. Also referred to as "present discounted value."

Browse related Articles by tag: personal finance, glossary, financial security: saving and investing


Have a specific question? Try asking one of our Experts

Unlike most other resources on the web, we have experts from Universities around the country ready to answer your questions.