Money is a broad term that includes anything accepted as a medium of exchange, a store of value, or a unit of account—covering cash, digital currencies, checks, and even electronic transfers. In contrast, cash refers specifically to the physical currency used for transactions: the coins and banknotes you can hold in your hand.
- Money includes all forms of value used for exchange, not just physical items.
- Cash is only the tangible, physical form of money.
- Money can be digital or physical; cash is always physical.
Money includes cash, digital currencies, checks, and electronic transfers.
Money encompasses cash, digital currency, and checks.
Source Material
Author: Corporate Finance Institute
Document: Difference Between Money and Cash
Date Published: 2023-06-01
Physical vs. Conceptual
Cash is the physical stuff—banknotes and coins—you can use for immediate payment. Money, on the other hand, is a concept that extends beyond cash to include electronic balances, credit, and other instruments that represent value, even if you never see them as paper or metal.
- Cash = physical currency (coins and banknotes).
- Money = broader concept including non-physical forms like bank balances and credit.
'Cash' specifically refers to physical currency.
A bank balance is considered money, but not cash.
Source Material
Author: Investopedia
Document: Cash vs Money: What’s the Difference?
Date Published: 2022-01-15
Usage in Transactions
Because cash is tangible, it’s used for immediate, in-person transactions. Money can be used more flexibly—digitally, through credit, or via other mechanisms—making it possible to transact across greater distances and in various forms.
- Cash is used for immediate, face-to-face transactions.
- Money can be used for online payments, credit, and other non-physical transactions.
Cash is typically used for in-person transactions.
'Money' can be used for online transactions, credit purchases, and electronic transfers—all beyond the reach of cash.
Source Material
Author: EKD Banking
Document: Difference Between Cash and Money
Date Published: 2021-09-15
Examples
| Term | Definition | Examples |
|---|---|---|
| Money | Any accepted medium of exchange or value storage | Cash, credit, debit, digital wallets, checks |
| Cash | Physical form of money | Dollar bills, euro coins, yen banknotes |
- Money: Includes a paycheck direct deposit, a Bitcoin wallet balance, and a twenty-dollar bill.
- Cash: Only the twenty-dollar bill from the above examples.
Cash is a $50 bill or a five-euro coin. Checks and deposits are not cash.
A credit card balance, bank transfer, and direct deposit are money but not cash.
Conclusion
While cash is the tangible, physical currency used for everyday transactions, money spans a much broader spectrum, including all forms—both physical and digital—that serve as a medium of exchange, store of value, or unit of account. Understanding this distinction helps clarify financial conversations in an increasingly digital world.
- Money is a broad concept; cash is just physical currency.
- Cash facilitates immediate, in-person transactions; money includes online and digital forms.
- Examples of money include cash, electronic funds, credit, and digital currencies.