How Does Difference between wealth and income | Macroeconomics | Khan Academy Work?

Wealth is like your piggy bank, and income is like the allowance you get every week.

Wealth is everything you own, like toys, a bike, or even that cool video game you saved up for. It’s what you’ve collected over time. Income is what you earn or receive regularly, like your weekly allowance from mom and dad.

Imagine you get $10 every week (that's your income), and you save it all in your piggy bank. After a few weeks, your piggy bank gets fuller and fuller, that’s your wealth growing.

If you save 10 every week for 5 weeks, you’ll have50 in your piggy bank (your wealth). But if one week you get a bonus of $20 from helping clean the house, that extra money is like a big income boost. Even though it's just one week, it can make your piggy bank grow faster.

So, income is what you get regularly, and wealth is what you’ve saved or collected over time, like your piggy bank getting bigger and bigger!