How to support your child through university without wiping out your own finances

As millions of students prepare to either start or return to university, millions of parents are working out how they can afford to support them financially while they’re there.

Around seven in ten parents (71%) contribute financially to help their children through university, according to research by the Association of Investment Companies. It found the average annual contribution last year was £8,723, with around half (49%) of parents using some of their cash savings and 16% using all or most of their savings to support their child’s student life.

“Supporting children through university can be hugely rewarding, but it’s also one of the most financially demanding commitments parents face,” says Ben Clapham, financial planning director at financial advice firm Shackleton Advisers, which has just produced a guide to supporting children financially through university.

“Rent, bills, and living costs may seem manageable at first, but over time they can quietly eat into savings and delay retirement plans,” he says. “The best approach is to plan ahead by setting budgets, spreading contributions, and being clear with children about what’s realistic. That way, parents can ease the pressure of student life without putting their own future at risk.”

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But it’s not just the parents who need to get their financial ducks in a row – they need to make sure their kids can manage money too, points out Vix Leyton, a consumer expert at the Thinkmoney banking app.

She says: “Sending your child to university should feel like a milestone, but for many families, the emotional adjustment comes hand-in-hand with a financial reckoning; how to support your child in a way that makes them feel secure but encourages financial independence, and how to do so without wiping out your own budget?

“As parents you want to give your child the best start, but supporting them through university isn’t just about being there for handouts, it’s about equipping them with the tools, knowledge, and confidence to manage their own money.”

Here, the experts suggest ways to help support your child through university without ruining your own finances…

1. Set a clear budget early

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Calculate how much you can realistically contribute each month or year, while taking into account your own household expenses and savings goals, advises Clapham. “Having a set limit can help ensure you’re not going beyond your means,” he points out.

Leyton says it’s important to be clear at an early stage about what you can contribute to, such as rent, bills, food, and maybe occasional extras.

“Students live on an irregular income, and when parents top them up ad hoc, it can blur boundaries fast,” she says. “A regular allowance helps them plan ahead and encourages accountability, so set out terms so everyone can plan ahead.”

2. Spread contributions

Instead of providing a lump sum at the start of the term, try spreading it throughout the academic year, suggests Clapham. “Smaller, regular payments can teach children how to manage their own money and make it go further, preventing the need for more,” he explains.

3. Talk openly about finances

Be honest with your children about how much you can afford beforehand, Clapham advises. “Having open conversations can help set clear expectations, encourage your children to spend wisely, and avoid misunderstandings.”

He also suggests reviewing your finances together at key points in the year to make sure your arrangements still work.

 4. Help your child with budgeting

Leyton stresses that budgeting isn’t about restriction, it’s about knowing what you can afford and avoiding unpleasant surprises. She says: “A simple budget gives your child a sense of control and prevents those ‘how is there nothing left?’ moments.”

She suggests sitting down with your child at the start of each term and working out fixed vs flexible costs. “Make sure it’s an honest conversation, and isn’t just based on the best of intentions,” she advises.

Encourage them to create a weekly budget that includes a small buffer for unexpected expenses, and Leyton advises they track weekly spending using real-time notifications or spend summaries via a banking app. “Contactless payments means it’s easy to miss small purchases racking up, and seeing their own patterns helps them adjust with minimal input from you,” she explains.

5.   Make sure they’ve got the best student bank account

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Holly Mackay, founder of Boring Money, which helps help consumers make better financial choices, says it’s important for students to check out the various deals on student bank accounts, as the associated perks can be good.

She says it’s a good idea for students to set up two bank accounts – one for income and one for key monthly expenditure, such as rent. They can then transfer their budgeted amount for day-to-day expenses from their income account at the beginning of the month and be strict about making this last.

6. Encourage financial independence

With university costs at an all-time high, it’s understandable children may need financial support from their parents, but Clapham stresses that this shouldn’t replace their own efforts.

He says parents should encourage children to apply for loans, bursaries, or scholarships they may be entitled to, and consider part-time work to boost their income. “Helping them build independence reduces pressure on your finances and equips them with money-management skills for the future,” he says.

Leyton suggests parents help their kids identify flexible roles that work with their study schedule, and  adds: “A part-time job can be a helpful boost, giving your child a sense of purpose, structure, and something valuable to add to their CV.”

7.  Make sure they get all student discounts possible

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One of the great perks of student life is the discounts, “But they’re only useful if you know where to find them,” says Leyton.

She suggests parents make sure their kids sign up for UNiDAYS, Student Beans, and TOTUM (the rebranded NUS Extra card), and are also aware of  StudentMoneySaver, SaveTheStudent, browser extensions like Honey which finds and applies student codes automatically when shopping online, and the student section of MoneySavingExpert for a live summary of the best deals available.

“Encourage them to ask for a student discount – plenty of places offer one, even if they don’t advertise it,” says Leyton. “Combine student discounts with cashback offers to stretch their money even further.”

8. Invest in gift cards

Gift cards don’t just have to be for birthdays – Leyton explains that parents buying supermarket gift cards before term starts is a simple way to ensure money goes towards food and essentials, rather than just fun.

She suggests looking for supermarket gift cards that offer cashback or loyalty rewards for maximum benefit, and adds: “Frame it as a food budget, not extra spending money.”

9.  Prioritise your own financial security

Clapham says parents should avoid dipping into essential savings or retirement pots to cover university costs. “Protecting your future ensures you won’t face hardship later, and you’ll remain in a position to help your child when they truly need it,” he points out.

And Leyton adds: “With practical tools, a bit of upfront planning, and an open line of communication, you can be there for them throughout the journey – and keep your own finances intact along the way.”