I’m sure. There are some non-luxury expenses such as laundry and toiletries. I’d imagine most parents pay for these, and the child doesn’t need an “allowance” in order to have these expenses paid.
Some families view weekly allowance as geared toward non-essentials (“pocket-money”), and others use the term to mean the money given for essentials that are not directly paid for by the parent.
I use the term for the former.