When examining the financial status of households, wealth is

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Wealth is a stock variable and refers to the total value of assets owned by a household at a given point in time. It includes tangible assets such as savings, investments, real estate, and personal property, as well as human capital, which represents the present value of a person's expected future income. Wealth is distinct from income, which is a flow variable that measures the amount of money earned or received over a period of time. While income is important for meeting day-to-day expenses, wealth can provide a cushion against unexpected expenses, economic downturns, and retirement.

When Examining the Financial Status of Households, Wealth Is