Centrifugal force acts outward from the center in a rotating system, while centripetal force acts inward, keeping objects in circular motion. Centrifugal force is considered a fictitious force, as it only exists in a rotating frame of reference and requires an external constraint to be felt. In contrast, centripetal force is a real force that opposes centrifugal force and is necessary for maintaining circular motion. For example, in a washing machine, centripetal force keeps clothes moving in a circle while centrifugal force pushes water outward. Understanding these forces is crucial for analyzing motion in rotating systems.