Hi Robin, Allowance is an amount of money that parents regularly give to their child to spend as they choose. It can also be " money that you are given regularly, especially to pay for a particular thing." E.g I couldn't have managed at college if I hadn't had an allowance from my parents. It's usually given by your parents or people, not companies. Subsidy is 'money given as part of the cost of something, to help or encourage it to happen.' E.g The company received a substantial government subsidy. It is usually given by the state, government, agencies, companies...