My title probably doesn't explain my worry / concern too well, but it's the best title I could think of. I am researching construction of real numbers for a college project, and as a consequence I am researching the Peano axioms. A couple of sources I have read come to the conclusion that $$ \{0,1,2,3,...\} \subseteq \mathbb{N} $$ (where ${1=S(0)}$, ${2=S(1)}$,...) and by the axiom of induction we have $$ \mathbb{N} \subseteq \{0,1,2,3,...\} $$ hence $$ \mathbb{N}=\{0,1,2,3,...\} $$ (in other words, the Natural Numbers are the set of all possible successors of $0$). The part that makes me feel uneasy is the definition of ${\{0,1,2,3,...\}}$. Doesn't defining this set in the first place use induction in some sense? Like - we start with $0$. Then ${S(0)}$ cannot be $0$, and so we define ${1:=S(0)}$. Then ${S(1)}$ can be neither $0$ or $1$, and so we define ${2:=S(1)}$... I'm not sure how doing this for finitely many elements justifies the existence of the set ${\{0,1,2,3,...\}}$. Does what I'm saying even make sense? Am I overthinking things? Thank you!
EDIT: I should specify, I am following the definition of the axiom of induction as is on Wikipedia (https://en.wikipedia.org/wiki/Peano_axioms)
EDIT 2: source example: http://www2.hawaii.edu/~robertop/Courses/TMP/7_Peano_Axioms.pdf , page $3$