What is Allowance?

Legal Definition
An allowance is an amount of money given or allotted usually at regular intervals for a specific purpose. In the context of children, parents may provide an allowance (British English: pocket money]) to their child for their miscellaneous personal spending. In the construction industry it may be an amount allocated to a specific item of work as part of an overall contract.

The person providing the allowance is usually trying to control how or when money is spent by the recipient so that it meets the aims of the person providing the money. For example, an allowance by a parent might be motivated to teach the child money management and may be unconditional or be tied to completion of chores or achievement of specific grades.

The person supplying the allowance usually specifies the purpose and may put controls in place to make sure that the money is spent for that purpose only. For example, a company employee may be given an allowance or per diem to provide for meals and travel when working away from home and may then be required to provide receipts as proof. Or they are provided with specific non-money tokens or vouchers that can be used only for a specific purpose such as a meal voucher.
-- Wikipedia
Legal Definition
A deduction, an average payment, a portion assigned or aliowed; the act of allowing.
See also
-- Black's Law Dictionary