Q. What is the difference between income and wealth?
Solution:
Income refers to the money a person or household earns over a period of time, such as monthly or yearly. It includes wages from jobs, profits from businesses, rent from properties, or interest from investments. Income helps people meet their daily needs, such as buying food, paying bills, and saving for the future. For example, a teacher earning a monthly salary or a shopkeeper earning profits from sales are examples of income. Higher income allows people to improve their quality of life by affording better goods and services.
Wealth, on the other hand, is the total value of all the assets a person or household owns, such as houses, cars, land, or savings in a bank account. It is like the stock of resources a person has accumulated over time. Wealth grows when people save their income, invest wisely, or inherit property. Unlike income, wealth does not depend on time—it can remain even without regular income. For example, owning a piece of land or having shares in a company contributes to wealth. Wealth plays a key role in providing long-term financial security and stability.
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