What do you mean by term time value of money?

Time value of money can be termed as the value of money which is present today which will be higher as compared to the future. The idea that a dollar today is worth more than a dollar in the future, because the dollar in the hand today can earn INTEREST during the time until the future dollar is received. The prices of goods and services increases with time hence it is also guided to save money as much as possible for thw future.