Support your child through uni without wiping out your own finances

AS millions of students are preparing to either start or return to university, millions of parents are working out how they can afford to support them financially during their time there.

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Around seven in 10 parents (71 per cent) 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 £8723, with around half (49 per cent) of parents using some cash savings, and 16 per cent using all or most of their savings to support their child.

"Helping children through university can be hugely rewarding, but it's also one of the most financially demanding commitments parents face," says Ben Clapham, planning director at financial advice firm Shackleton Advisers, which has produced a guide to help parents navigate this time.

"Rent, bills, and living costs may seem manageable at first, but over time they can quietly eat into savings and delay retirement plans.

"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."

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 without ruining your own finances...