Unearned income refers to money received without actively working for it. This type of income can come from various sources, such as interest from savings accounts, dividends from stocks, or rental income from properties. It is distinct from earned income, which is obtained through employment or services rendered. Many people rely on unearned income for financial stability or to supplement their earnings. It can also include government benefits like Social Security or unemployment payments. Understanding unearned income is essential for effective financial planning and tax considerations.