The time value of money 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. Time value of money is also sometimes referred to as present discounted value.
We can say that the money on hand today is worth more than the same amount of money after a period of time.