Snowflake provides 'Temporary Tables' and 'Transient Tables' as mechanisms to reduce data storage costs for short-lived tables. Temporary tables are designed for short-lived data that doesn't need to be stored beyond the current session, while transient tables are for data that needs to be stored longer than a temporary table but is not required to be permanent. Both options are optimized for reducing storage costs for data that doesn't need to be preserved long-term.