What are time preference varies across generations?

Time preference varies across generations means that people born in different times think about saving and spending differently.

Imagine you have a piggy bank. If you're a kid today, you might want to spend your allowance on candy right now, because it tastes so good! But if you're an adult, you might save that money for something bigger, like a new bike or even a house someday.

This is time preference in action: the idea that people value things differently depending on when they get them. Kids usually prefer getting something now, while grown-ups often choose to wait for something later if it's better.

Think of your parents and grandparents. Your parents might save more money than you do now, because they want to have a good life when they're older. But your grandparents might have been even more focused on saving, maybe they didn’t get as much money growing up, so they wanted to make sure they had enough for the future.

So each generation has its own way of thinking about time and money, which is why time preference changes over time!