When a person works an eight-hour day and receives a fair day's pay for his time, that is a wage.
When a person competes with an opponent and receives a trophy for his performance, that is a prize.
When a person receives appropriate recognition for his long service or high achievements, that is an award.
But when a person is not capable of earning a wage, can win no prize, and deserves no reward--yet receives such a gift anyway--that is a good picture of God's unmerited favor. This is what we mean when we talk about the grace of God.
"For by grace are ye saved through faith; and that is not of yourselves: it is the gift of God: not of works, lest any man should boast." Ephesians 2:8-9