Allowance can refer to a fixed amount of money given or allotted at regular intervals for a specific purpose). Here are some common types of allowances:

• Pocket Money: An allowance given by parents to their children for their miscellaneous personal spending).
• Salary Allowances: A fixed amount of money paid by employers to their employees periodically to cover certain expenses above basic salary.
• Construction Allowances: An amount allocated to a specific item of work as part of an overall contract in the construction industry).
• Withholding Allowances: An exemption that reduces how much income tax an employer deducts from an employees paycheck.

Allowances can be categorized as taxable, non-taxable, or partially taxable. Taxable allowances include dearness allowance, entertainment allowance, overtime allowance, and more. Non-taxable allowances include conveyance allowance, payments to government employees posted abroad, books and periodicals allowance, and more. Partially taxable allowances include house rent allowance, leave travel allowance, and more.

In the context of children, parents may provide an allowance to their child for their miscellaneous personal spending). In the context of employment, employers may provide allowances to their employees to cover certain expenses above basic salary.