I'd say Picard's FIRST CONTACT line about "the economics of the 24th century" was the writer handing us a simplistic fairy tale of future socialist utopia.
That a good way of looking at it.
Another way would be this, in a early TNG episode, Riker says "WE"
no longer enslave animals for food, suggesting that incredible progressive and enlightened people in the Federation are all veggies. But later we learn that more than a few people in the future do in fact eat the flesh of the beast. Even Riker himself is seen to eat a mouth full of scrabbled eggs (although some people don't consider eggs to be "meat").
So when Riker said "WE"
he didn't mean everyone in the Federation, or even all of Humanity, but (possibly) instead the "WE"
mean myself and a selections of others within my society who believe as I do.
And this could be the case with Picard and his no money quote. There could be a select few within Humanity/The Federation who have renounced money and the pursuit of material possessions. Obviously from many examples, the majority of the people featured on the show do not share this philosophical believe system. But some do.
Picard makes as little use of the pay he receives from Starfleet as he possibly can, it mostly just sits in his account. And Picard has very few personal belongings. Not to say he has none, just few.