Disperse means to scatter or spread out, while disburse means to pay money out, usually from a fund or budget. Think of a crowd that disperses, but a grant that is disbursed.
The core difference
Disperse is about scattering things or people in different directions; disburse is about paying money out.
- disperse — to scatter or spread out: The crowd began to disperse once the concert ended.
- disburse — to pay out money, especially from a public fund: The council will disburse the grant in two instalments.
How to tell them apart
A simple memory trick: disburse contains burse, an old word linked to a purse, so it belongs with money. Disperse shares its root with sparse, which fits the idea of things being spread thinly across a wider area.
The mix-up tends to appear because the two words look and sound alike, especially in writing about funds. If you are talking about money being paid out, use disburse. If you mean people, smoke, seeds or information spreading out, use disperse.