I don't quite understand the difference between margin and padding. Can anyone clarify?

To go along with the above answer here is a simple way to see the difference. Say you make a border for an element. If you add more padding, the border will move away from your text, img, whatever your element is. If you add margin, you border won't move, however you will notice other elements being pushed further away. As you'll learn on down the road there are times padding is needed and when margin is need. I suggest looking at the css basics course followed by the css layout basics. It will give more examples of margins vs padding and give you more opportunity to use them. Hope I'm making sense. Happy coding!

Yes, there is a picture, simply follow every detail of the picture and you will be fine with it. http://www.avajava.com/tutorials/lessons/how-are-margins-borders-padding-and-content-related.html

Margin is outside the element while padding is inside the element