What is the difference between an allowance and bonus?

An allowance is a fixed amount of money provided regularly, often to cover specific expenses, such as a child's weekly money for personal use or an employee's travel expenses. In contrast, a bonus is a one-time payment given as a reward for performance, achievement, or company profits, typically provided at the end of a financial period. While allowances are predictable and recurring, bonuses are variable and based on performance criteria.