I was confused as well, I was close but no cigar, but here clears up the differences between steam and vapor.. I'm probably the only one that really needed this =P well maybe your nephew too heh
Steam is actually invisible, dangerous, and can kill you. What you can see if you boil water in a tea kettle, as the pressure builds and blows the water vapor out of the whistle port, the invisible area immediately exiting the whistle port is steam, as soon as the steam hits the atmosphere and begins to cool it becomes visible water vapor.
So what i thought was steam, is in fact just hot water vapor cooling to ambient temperature.
I don't believe its actually the education system to blame for misunderstandings like this. You go through your life calling water vapor steam in passing, its going to eventually just kinda stick if you don't have any real encounters or need to reference an actual steam vent.