Think of money as a way we all agree to buy and sell things, like a universal language for trading. Money can be cash, coins, or digital currency. It helps us buy the things we need or want, pay our debts, and save up for the future. It's also a way for us to measure and compare the value of different goods and services.

Now, capital is more about the resources we use to create goods and services, which helps us make income or profit. There are two main types of capital: physical capital and financial capital.