What are the fundamental differences between capitalism and socialism?

Capitalism and socialism are two different ways that people share or keep things like money and stuff.

Imagine you have a toy store, and you want to sell your toys. In capitalism, it's like you're the boss of the toy store, and you decide how much each toy costs. You might even let other kids run parts of the store too, but they keep all the money they make from selling toys.

In socialism, it's more like sharing the toy store with your friends. You still run the store, but when you make money, you give some of it to everyone else so they can buy toys too. Sometimes, the whole group decides together how much each toy should cost.

• In capitalism, people work for companies or start their own businesses and keep most of what they earn.
• In socialism, the government often helps share money and resources so everyone has a fair chance to buy stuff, even if they don’t have much money at first.

Both systems help kids (and grown-ups) get toys, just in different ways!