Some decisions don’t feel like decisions at all. The third cup of coffee. The late-night impulse buy. Clicking “Remind me tomorrow” on a budget alert. And yet, these tiny choices quietly sculpt the architecture of our financial lives. Behind every moment of spending—or saving—is a story of struggle: between the present self who wants now, and the future self who hopes for later.
In their thoughtful chapter on inter-temporal choice and self-control, psychologists Paul Webley and Ellen Nyhus shine a compassionate light on this internal tug-of-war. They remind us that financial behavior isn’t just about numbers or plans—it’s about timing, identity, and the small triumphs of self-mastery.
What Is Inter-temporal Choice?
At its core, inter-temporal choice is about trade-offs between present and future outcomes. Do you spend $50 today on a dinner out, or save it for next month’s electric bill? Do you put your bonus into a retirement fund, or buy that new gadget you’ve been eyeing?
Economic theory once assumed we made these decisions like calculators, discounting the future at a stable, rational rate. But real life doesn’t work that way. Webley and Nyhus show us how people often discount the future in wildly inconsistent ways. We’ll postpone pleasure if it’s far off—but when the reward is just around the corner, we’re suddenly tempted beyond measure.
This inconsistency—known as hyperbolic discounting—explains why saving for retirement can feel impossible, and why debt can spiral. It’s not that we don’t care about the future. It’s that we care less right now.
The Two Selves
One of the most powerful ideas in this work is that we each carry multiple selves within us. There is the impulsive present self, hungry for immediate reward. And there is the reflective future self, who values long-term goals. The act of saving is essentially the future self leaving a note to the present: “Please think of me.”
But the present self is louder.
Borrowing, then, is not just about lack of money—it can be about lack of patience. Webley and Nyhus cite studies showing that people who have stronger self-control are more likely to save and less likely to fall into debt. But self-control isn’t simply a trait. It’s also a context, a skill, and sometimes, a privilege.
The Role of Upbringing and Socialization
How do people develop the ability to choose tomorrow over today?
The answer often begins early. Children who learn to delay gratification—through encouragement, modeling, and structured environments—are more likely to grow into adults with better financial habits. But upbringing is only part of the story. Economic hardship, unstable environments, and systemic inequality can erode the psychological capacity to plan. If your world is unpredictable, it makes sense to live in the now.
This is a crucial insight: poor saving is not always a failure of willpower. It can be a rational adaptation to uncertainty. What looks like irresponsibility may be a response to life’s volatility.
The Emotional Side of Debt
While saving is often framed as virtuous, borrowing is framed as shameful. But Webley and Nyhus show that borrowing can be emotionally complex. People borrow to smooth consumption, to deal with emergencies, or to maintain a certain standard of living. But over time, debt can produce anxiety, avoidance, and guilt.
Here again, timing matters. When people discount the future steeply, they may take on high-interest debt to solve today’s problem—only to feel trapped later. It’s not irrationality. It’s a fragile emotional calculus.
Tools for the Inner Struggle
So, how can we help the future self win more often?
Webley and Nyhus explore several strategies:
- Commitment devices: automatic transfers to savings, apps that lock funds, or penalties for spending can reduce temptation.
- Mental accounting: people often treat money differently depending on its source (e.g., treating a bonus as “free money”). Reframing can help shift spending habits.
- Social support: financial behavior improves when it’s talked about openly, free from shame. Group saving programs and peer accountability work not just because of money, but because of belonging.
In other words, self-control isn’t a solitary act. It’s a networked one.
A Gentle Takeaway
Too often, we treat saving and borrowing as moral issues—proof of character or weakness. But the truth is gentler. Our financial decisions are shaped by how we perceive time, how we feel about ourselves, and what we believe the future holds.
Inter-temporal choice is not just about money. It’s about hope.
To save is to believe that tomorrow matters. To borrow is sometimes to survive the moment. Both acts are deeply human. And in the quiet space between now and later, we are all just trying to make peace with ourselves.
Final Reflection:
When you next hesitate before buying something or feel the weight of a financial choice, remember: you’re not alone in that moment. You’re standing at the crossroads of time, holding both your present and future selves in balance. That pause? That’s wisdom.