# Time Value of Money

*Saving & Investing — Finicade finance glossary*

A dollar today is worth more than a dollar next year, because today's dollar can be invested to earn a return. This one idea — discounting the future back to the present — underlies almost every valuation in finance.

**Related terms:** [Present Value](https://finicade.com/glossary/present-value), [Future Value](https://finicade.com/glossary/future-value), [Discount Factor](https://finicade.com/glossary/discount-factor), [Compound Interest](https://finicade.com/glossary/compound-interest)

Source: https://finicade.com/glossary/time-value-of-money