Keep kids afloat at uni without sinking your own finances

AS millions of students prepare to either start or return to university, millions of parents will be working out how they can afford to support them financially while they're there.

- By LISA SALMON

Around seven in 10 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.

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