On level up, 1 strength (STR) and 1 intelligence (INT) point are allocated automatically, and 3 further stat points are given that you can freely allocate.
Allocation is done in the character window (C): the Stat Point row shows your pool, and the + buttons on the STR and INT rows spend it.
The same window shows current experience (Current Exp), the experience needed for the next level (Next Exp) and your HP/MP. STR feeds health and physical power, INT feeds mana and magical power.
The character window (C): Current/Next Exp, the Stat Point pool and the STR/INT allocation buttons