What Is the Difference Between ‘Money’ and ‘Wealth’?

Imagine money is like the coins in your piggy bank, and wealth is like all the toys you can buy with those coins. Money is what you have right now; wealth is everything you can get from it. If you save up your coins to buy a big toy, that toy becomes part of your wealth.

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Examples

  1. A child saves $10 from allowance, that’s money. If they use it to buy a toy, the toy becomes part of their wealth.
  2. Having $10 in your pocket is money; having a piggy bank full of coins is wealth.
  3. Your lunch money is money, but all the food you’ve bought with it over time adds up to your wealth.

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