Life history theory is a way of understanding why people are the way they are and why they do the things they do. It is based on the idea that different parts of our lives (our childhood, adolescence, adulthood, etc.) affect how we think, feel, and act in different ways. It looks at the way we use our energy and the choices we make over time - like whether we invest our energy into one thing or a lot of different things. It is important because understanding our life histories can help us make better decisions and lead more fulfilling lives.