The Time Value of Money (TVM) is a financial concept that suggests money available today is worth more than the same amount in the future. This is because money can earn interest or generate returns over time, making it more valuable the sooner it is received. For example, if you invest $100 today at a 5% annual interest rate, it will grow to $105 in one year. This principle is crucial for making informed decisions about investments, loans, and savings, as it helps individuals and businesses understand the potential future value of their money.