Discounted utility

Discounted utility is a way of measuring how much something is worth to us. It's like a special way of 'shopping' - when we are deciding how much something is worth, we 'discount' the value of it because we know that it will get less useful or desirable over time. For example, if there's something you really want to buy today, like a new video game or a toy, it might be worth $50. However, if you wait a few months to buy the same item, it may not be worth as much because you won't have as much time to enjoy it.