Time inconsistency refers to a situation where a person's preferences change over time, leading to decisions that may not align with their long-term goals. For example, someone might plan to save money for retirement but later choose to spend that money on immediate pleasures instead. This inconsistency can create challenges in achieving desired outcomes. This concept is often discussed in behavioral economics, where it highlights the conflict between short-term desires and long-term intentions. Understanding time inconsistency can help individuals and policymakers design better strategies, such as commitment devices, to encourage more consistent decision-making over time.