Allowance vs. Scholarship: What's the Difference?
Edited by Sawaira Riaz || By Sumera Saeed || Updated on November 7, 2023
Allowance is a sum of money given regularly for a specific purpose; a scholarship is financial support awarded to a student based on criteria like merit or need.
Key Differences
An allowance is typically a fixed amount of money given to someone regularly for general expenses or specific purposes. For example, "Parents give their children an allowance for doing chores," implies a small sum of money provided on a regular basis for personal expenses.
Sumera Saeed
Nov 03, 2023
A scholarship is a form of financial aid awarded to students to help pay for their education, often based on academic or other achievements. As in, "She won a scholarship due to her excellent grades," which means she has been granted money specifically for her education costs due to her academic merit.
Sumera Saeed
Nov 03, 2023
Allowances are usually given with some freedom regarding spending, often aiming to teach financial responsibility. For instance, "His weekly allowance was meant to cover lunch and transportation costs," suggests it is meant to help with everyday expenditures.
Sumera Saeed
Nov 03, 2023
In contrast, scholarships are often tied to the cost of education, such as tuition fees, books, and sometimes living expenses, and are not typically meant for personal spending. For example, "The scholarship covered his tuition and dormitory fees," indicates that the funds are earmarked for specific educational expenses.
Sumera Saeed
Nov 03, 2023
Allowances can come from parents, guardians, or employers as part of a wage package, and do not usually reflect the recipient's performance or needs. Conversely, scholarships are competitive and are awarded based on set criteria such as academic excellence, athletic skill, or financial need.
Sumera Saeed
Nov 03, 2023
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Comparison Chart
Definition
Regular sum of money for expenses or purpose.
Financial aid for education based on criteria.
Sumera Saeed
Nov 03, 2023
Source
Parents, guardians, employers.
Educational institutions, organizations.
Sumera Saeed
Nov 03, 2023
Criteria for Award
Typically none; discretionary or need-based.
Merit, need, or specific talents/abilities.
Sara Rehman
Nov 03, 2023
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Allowance and Scholarship Definitions
Allowance
A sum of money granted to cover particular needs.
The children received a daily allowance during the trip.
Aimie Carlson
Nov 03, 2023
Scholarship
A grant or payment made to support education.
The scholarship allowed her to attend the university without debt.
Janet White
Nov 03, 2023
Allowance
An amount given for a specific purpose.
The company provided an allowance for travel expenses.
Sara Rehman
Nov 03, 2023
Scholarship
Financial aid provided to a student based on academic achievements.
His outstanding test scores earned him a full scholarship.
Sawaira Riaz
Nov 03, 2023
Allowance
An agreed quantity or rate.
The contractor added a 5% allowance for waste.
Janet White
Nov 03, 2023
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Scholarship
An award for a student to further education.
She received a scholarship from a local charity.
Janet White
Nov 03, 2023
Allowance
A sum of money allotted regularly for personal use.
She saved her weekly allowance to buy a new bike.
Sawaira Riaz
Nov 03, 2023
Scholarship
A fund endowed for the education of a student.
The endowment provides a scholarship to one student each year.
Harlon Moss
Nov 03, 2023
Allowance
A financial entitlement, such as a deduction or rebate.
Taxpayers are eligible for a standard deduction allowance.
Janet White
Nov 03, 2023
Scholarship
A monetary award for students to pursue academic goals.
The national scholarship funded his medical studies.
Aimie Carlson
Nov 03, 2023
Scholarship
The methods, discipline, and attainments of a scholar or scholars.
Sumera Saeed
Oct 31, 2022
Allowance
An amount that is allowed or granted
Consumed my weekly allowance of two eggs.
Sumera Saeed
Oct 31, 2022
Scholarship
Knowledge resulting from study and research in a particular field.
Sumera Saeed
Oct 31, 2022
FAQs
What is a scholarship?
It's financial support given to a student, often based on merit or need.
Sawaira Riaz
Nov 03, 2023
Who awards scholarships?
Educational institutions, foundations, or organizations.
Janet White
Nov 03, 2023
What is an allowance?
It's a regular amount of money given for personal use or specific needs.
Sumera Saeed
Nov 03, 2023
Do scholarships need to be repaid?
Generally, no, scholarships do not need to be repaid.
Harlon Moss
Nov 03, 2023
Are scholarships always based on academics?
Not always; they can also be based on need or special talents.
Aimie Carlson
Nov 03, 2023
Can an allowance be used for anything?
Typically, yes, unless specified otherwise.
Harlon Moss
Nov 03, 2023
Is an allowance earned?
It can be, but often it's given without specific criteria.
Janet White
Nov 03, 2023
Is a scholarship earned?
Yes, usually through academic performance or other achievements.
Sara Rehman
Nov 03, 2023
Must scholarship money be used for education?
Yes, it's designated for educational expenses.
Sumera Saeed
Nov 03, 2023
Are scholarships taxable income?
They can be, depending on how the funds are used.
Janet White
Nov 03, 2023
How often are allowances given?
They're usually given on a regular basis, like weekly or monthly.
Sumera Saeed
Nov 03, 2023
Can an allowance cover educational expenses?
Yes, if it's designated for that purpose.
Harlon Moss
Nov 03, 2023
How often are scholarships awarded?
They're typically awarded per semester or academic year.
Sumera Saeed
Nov 03, 2023
Can an allowance be considered a wage?
If it's part of an employment package, yes.
Sumera Saeed
Nov 03, 2023
Can someone receive multiple scholarships?
Yes, if they meet the criteria for each.
Aimie Carlson
Nov 03, 2023
About Author
Written by
Sumera SaeedSumera is an experienced content writer and editor with a niche in comparative analysis. At Diffeence Wiki, she crafts clear and unbiased comparisons to guide readers in making informed decisions. With a dedication to thorough research and quality, Sumera's work stands out in the digital realm. Off the clock, she enjoys reading and exploring diverse cultures.
Edited by
Sawaira RiazSawaira is a dedicated content editor at difference.wiki, where she meticulously refines articles to ensure clarity and accuracy. With a keen eye for detail, she upholds the site's commitment to delivering insightful and precise content.
