The Saddlers who were relegated from League One sacked Kevan Broadhurst after their relegation and opted for Money who has also been in charged at Scunthorpe.
Saddlers Chairman Jeff Bonsor said to Walsall's official website: "Money is an outstanding candidate in terms of qualifications and experience and his appointment has the unanimous approval of the board. We are focussed on regaining our League One status at the first attempt and believe Richard is the right man to achieve that objective."