Future Discounting
Valuing future outcomes less than equivalent present outcomes, often to an irrational degree.
Also known as: Temporal discounting, Time discounting, Future devaluation
Category: Concepts
Tags: time, psychology, decision-making, bias, futures
Explanation
Future discounting describes how we systematically value future outcomes less than present ones. Some discounting is rational - a dollar today is worth more than a dollar next year due to opportunity cost and uncertainty. But humans often discount far more steeply than rationality justifies, especially for near-term delays. We treat our future selves almost as strangers, readily sacrificing their wellbeing for present comfort. This explains: undersaving for retirement (decades away feels unreal), health neglect (consequences are distant), and procrastination (future effort seems easier). Future discounting is steeper for: losses versus gains, smaller versus larger amounts, and shorter versus longer delays. Countermeasures include: making the future vivid (aging apps, visualization), pre-commitment, and building identity connection to future self. For knowledge workers, understanding future discounting helps: design systems that protect long-term interests, recognize when short-term thinking dominates, and build habits that serve the future.
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