IP Address
A unique number used to identify a device over the internet. Without it no device can communicate with other device.
Analogy
IP address is like a Roll Number in your school days like 1 , 2 etc . Which is different for each classmate in the same class.
Example : 127.0.0.1
Mac Address
A unique identifier for a device. It is its identity which is permanent. It can be changed temporarily.
Analogy
Your Roll no. (IP) can be changed but who you are can't be changed. Like your name , father name is specific to you.
Same, Mac address is written on device hardware during manufacturing.
Example : 00.1A.2B.3C.4D.16
Comment if I missed any point.
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