- Allowance (money)
An allowance is an amount of money set aside for a designated purpose.
Because money is ever a scarce and valuable commodity, the general concept of one person who has the authority to decide what to spend it on (that is, who has "the power of the purse") allowing another person to have some (for whatever reason) is often referred to as an "allowance;" some specific examples follow.
Types of allowance
A child's allowance
A child's allowance or pocket money is a small sum of money periodically given to a child by his/her parents, typically on a weekly or monthly basis. Their parents "allow" them a fixed amount of money within a given period of time. Often parents demand that certain tasks (such as cleaning or sharing) be done as a condition of receiving the allowance, in an attempt to teach the child about responsibility. Parents might also give less or no money if the child's behavior does not meet their standards. A child's allowance also has the benefit of teaching a child money management skills. [http://www.babyinvestor.com Money Management for Kids] ] .
There are many types of allowances: 1) allowances for chores, 2) allowances for grades, 3) allowances just because, 4) the Ultimate Allowance, which is when parents take the money they spend on their children in terms of raising them and run it through the kids instead. The goal of this type of allowance is to prepare the child to be 100% responsible for themselves by the time they move out of the house.
All forms of allowance are generally provided to the child in order to teach them about money. Some forms work much better than other forms. [http://www.ultimateallowancebook.com The Ultimate Allowance Book by Elisabeth Donati ] ] .
Allowances in business
construction, an allowance is an amount specified and included in the construction contract(or specifications) for a certain item of work (e.g., appliances, lighting, etc.) whose details are not yet determined at the time of contracting. Typically:
# the allowance amount covers the cost of the contractor's material/equipment delivered to the project plus all taxes less any trade discounts to which the contractor may be entitled with respect to the item of work;
# the contractor's costs for labor (installation), overhead, profit and other expenses with respect to the allowance item are included in the base contract amount but not in the allowance amount;
# if the section 1 costs for the item of work are higher (or lower) than the allowance amount, the base contract amount should be increased (decreased) by the difference in the two amounts and by the change (if any) to the contractor's costs under section 2.
The allowance provisions may be handled otherwise in the contract: e.g., the flooring allowance may state that installation costs are part of the allowance. The contractor may be required to produce records of the original takeoff or estimate of the section 2 costs for each allowance item.
Other issues that should be considered in the contract's allowance provision are:
* may the client insist that the contractor use whomever the client wishes to do the allowance work?;
* may the contractor charge the client back for any costs arising from a delay by the client (or client's agent) in selecting the material or equipment of the allowance in question?
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Look at other dictionaries:
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allowance — al|low|ance [ ə lauəns ] noun count ** 1. ) an amount of money that parents give a child regularly: I had to pay for the broken window out of my allowance. a ) an amount of money that someone receives regularly, in order to pay for the things… … Usage of the words and phrases in modern English
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allowance — al·low·ance /ə lau̇ əns/ n 1: an allotted share: as a: a sum granted as a reimbursement or payment for expenses an allowance to support the deceased s family deduction for a moving allowance b: a sum granted as a reduction or increase … Law dictionary
allowance — [ə lou′əns] n. 1. the act of allowing, permitting, admitting, etc. [the allowance of a claim] 2. something allowed as a share; specif., an amount of money, food, etc. given regularly to a child, dependent, etc. or to military personnel for a… … English World dictionary
allowance — ► NOUN 1) the amount of something allowed. 2) a sum of money paid regularly to a person. 3) an amount of money that can be earned or received free of tax. ● make allowances for Cf. ↑make allowances for … English terms dictionary
allowance — [n1] amount of money or other supply aid, alimony, allocation, allotment, annuity, apportionment, bequest, bite*, bounty, commission, contribution, cut, endowment, fee, fellowship, gift, grant, honorarium, inheritance, interest, legacy, lot,… … New thesaurus
allowance — al|low|ance W3S2 [əˈlauəns] n 1.) [C usually singular] an amount of money that you are given regularly or for a special purpose a monthly/annual etc allowance ▪ His father gives him a monthly allowance of £200. allowance for ▪ Do you get an… … Dictionary of contemporary English
allowance — noun (C) 1 an amount of money that you are given regularly or for a special reason: His father gave him an allowance of $1000 a year. | travel/clothing/housing allowance etc (=money given officially to spend on travel etc): Jo s salary includes a … Longman dictionary of contemporary English