A stipend is usually what you receive or get during an internship or apprenticeship. It's not really a salary. https://en.wikipedia.org/wiki/Stipend An allowance is money that is given at regular times. For kids in the UK we call it pocket money - so some children might get a pocket money (allowance) of £1 a week or more if they are lucky. When studying some students are given an allowance, this is usually money given to the student for free, which they do not have to pay back.