If you are one who lives in a community where you have 1,000,000 and everyone else who lives there considers a million pocket change meaning the next poorest person is worth 100,000,000 then in relative terms, you are poor.
On the other hand if your annual income is 25 dollars a month which will not allow you to buy food or clothing or shelter and you live out of garbage cans owned by other people, that's absolute poverty.
That gives you the beginning idea of what these two terms mean. In fact sociologists consider absolute poverty to mean that you live below a standard that allows for your basic needs. The society in general can provide these needs.
Relative poverty will be as it was described above. Basic needs are met, but the general society can do better. Countries use both stands to define what poverty is.
