Kylie Jenner: What is a billionaire?

Last updated at 13:37
Kylie JennerGetty Images
At 21, Kylie Jenner is the world’s youngest billionaire

Kylie Jenner has hit the headlines as the youngest self-made billionaire, but what actually is a billionaire?

That sounds like a simple question - obviously it's someone who has a billion pounds, dollars, euros etc in the bank, right? Well that's not actually the case.

Although billionaires will no doubt have a healthy bank balance, they're very unlikely to have access to that much money when they check their bank balance.

Their financial value - or net worth if you want to use a bit of business language - includes not just the money they physically have, but the value of things like houses, cars, and other assets. The net worth also takes into account the value of a business someone owns when figuring out how much they're worth. All of this counts towards what makes someone a billionaire.

Person stood beneath an umbrella and lots of moneyGetty Images

Despite having lots of types of income, Kylie's cosmetics business is the main source of her entry onto the billionaires list. Her company is estimated to have had sales worth$360m last year alone.

What makes a billion is also different depending on where you are; in the UK we refer to a billion as a million million, but in the US it's a thousand million.

Although the numbers are different in each place, the standard we use to define a billionaire is the American way - someone worth more than 999,999,999 in the local currency.

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