It is the tendency for people to prefer a smaller, immediate payoff over a larger, delayed payoff. Would you rather have me give you $20 right now or $100 a year from now? Most people would choose the $20 today. Multiple studies show this. On a larger scale, hyperbolic discounting is what accounts for lottery winners taking a fraction of their prize in a lump sum instead of getting the whole thing paid in annuities over time. Ever see those “I need cash now” commercials? Companies make a good deal of money from this.