ELI5: Explain Like I'm 5

Discounts and allowances

Imagine you have a candy bar that costs one dollar. This means you need to give one paper bill to the candy store to get the candy bar. But what if the candy store has a discount?

A discount means you won't have to give one whole paper bill for the candy bar. Maybe the store will give you a discount of 50 cents. This means you only need to give 50 cents in addition to the candy bar, instead of one whole paper bill. So the candy bar will cost you 50 cents less than before.

Now let's talk about allowances. An allowance means that you get something for free or at a lower cost than usual. For example, some stores might offer a buy-one-get-one-free allowance. This means that if you buy one candy bar, you get one for free. You only pay for one bar, but you'll get two in return.

Another kind of allowance is a rebate. A rebate means that you buy something for a certain price, and then later get some of that money back. For example, if you buy a candy bar for one dollar with a rebate, you might get 50 cents back in the mail later. So even though you paid one dollar at first, you'll eventually only pay 50 cents for the candy bar.

Overall, discounts and allowances help make buying things cheaper and easier for you. They can help you save money or get more for what you paid for.
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