Top Differences Between Money and Currency

money vs currency

Money. Cash. Capital. Funds. Finances. Moola. Currency.

There are lots of different words used to define what makes our world go round. We spend money everyday to buy goods and services. We use money to invest in beautiful Belize, travel the world, support our families, and live a fulfilling life.

moneyBut did you know there is an actual difference between money and currency?

Before we get into the differences, let’s review a little history.

For the last 3,000 years, money has existed in some shape or form. Before that time, a system of bartering existed, which is the direct trade of goods and services. For example, a farmer might have exchanged a bushel of apples for a pair of shoes from a shoemaker.

In 1971, the convertibility of the U.S. dollar into gold was cancelled by President Nixon which began the age of ‘Fiat’ currency printing. When too much of Fiat is printed, it can result in hyperinflation.

What Is Fiat Money?

Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government, rather than the worth of a commodity backing it. Most modern paper currencies are fiat currencies, including the U.S. dollar, the euro, and other major global currencies.

Central banks have greater control over the economy thanks to Fiat money because they have the say over how much money is printed. Fiat money gives central banks greater control over the economy because they control how much money is printed.

So why should all of this matter to you?

piggy on beachYou will feel more confident and knowledgeable about where you store your value and how you invest when you understand the difference between currency and money.


Currency is what we keep in our pockets to make payments everyday and increase our purchasing power. Money refers to the actual value of goods or services.

Concept and Form

Currency is a tangible concept such as plastic cards, paper and coins. Money is intangible and takes the form of numbers.


Currency is backed by the government of that particular country. Money is backed by a variety of things, such as checking and savings accounts along with an online mode.

Transfer Mode

Currency must be transferred from one person’s hands to another. Money can be transferred online.

While the value of money continues to decline everyday, it’s wise to put it into real assets. Some ways to invest include:

✓ Real estate (Read about 5 ways it pays investors)

✓ Gold & Silver (Read 7 “Golden” points on how it offers stability)

✓ Cryptocurrency (Read about what makes it special)

Want to find new ways you can grow your wealth and build a legacy you’re proud of? Schedule a call