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.
Examples
- Having $10 in your pocket is money; having a piggy bank full of coins is wealth.
- 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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See also
- Why Do We Have Different Kinds of Taxes?
- Why Do Prices Change So Much?
- Why Do We Use Money Instead of Bartering?
- Why Do Prices Go Up So Much When There's a Shortage?
- Why Do We Have Different Kinds of Coins?
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Categories: Economics · money,wealth,economics basics