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what is the difference of “allownce” and “subsidy“?

For learning: English
Base language: English
Category: Culture

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    An allowance is money given to you for your expenses. It is usually free for you to decide how you would like to spend this money.

    A subsidy is money paid for you to reduce the cost of something to you. This money can only serve to pay for something specific.
    For example, an education subsidy serves to reduce the fees you pay.

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