What's the Difference Between Money and Wealth?

Imagine you have $10 in your pocket. That’s money, it’s what you can spend right now to buy candy or toys. But if you save that $10 and use it to grow a garden, which gives you food for months, that’s wealth. Wealth is like the things you own or can make from money that last longer than just today.

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Examples

  1. Having $10 today is money. Using that $10 to buy a tree which grows fruit for years is wealth.
  2. Money is like your piggy bank, but wealth is your garden.
  3. You can spend all your money on candy now, or save it and grow a big garden later.

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Categories: Economics · Money· Worth· Wealth· Economics