Starting university is exciting. For parents, it can also feel like a big moment of adjustment.
Your son or daughter may be leaving home, managing their own schedule, making new friends and, very possibly, handling more money than they have ever had to manage before.
Recent research from Nationwide found that money worries are one of the biggest regrets facing students today. Six of the top seven mistakes made by current students are money-related, including not budgeting, overspending on nights out, relying too heavily on overdrafts or credit, not saving in advance, not having an emergency fund, and spending too much of the student loan in the first few weeks.
The good news is that many of these mistakes are avoidable.
A few calm, practical conversations before term starts can help new students feel more confident and avoid some of the most common financial pitfalls.
1. Help them treat the student loan like income, not a windfall
When the first maintenance loan arrives, it can feel like a lot of money.
The problem is that it may need to last for several months.
Before term starts, it is worth sitting down together and working out what the money needs to cover first: rent, bills, food, travel, course costs and any regular commitments.
Once the essentials are clear, it becomes much easier to see what is left for socialising and extras.
2. Encourage a weekly spending plan
A termly budget can feel too big and too vague, especially for someone managing their own money for the first time.
A weekly spending plan is often easier.
Once rent and fixed costs are covered, help them work out what they can spend each week. This gives them a clearer idea of what is affordable and helps avoid the classic mistake of spending freely in the first few weeks, then feeling squeezed later in the term.
It does not need to be complicated. A banking app, spreadsheet or notes page is enough to get started.
3. Talk honestly about food, takeaways and nights out
Food, coffees, takeaways and nights out can quickly become the silent budget-busters of student life.
Nobody wants to take the fun out of Freshers’ Week, but it helps to have a realistic conversation about how quickly small costs add up.
Encourage them to plan a few easy meals, take lunch onto campus when they can, batch cook with housemates and keep takeaways as an occasional treat rather than the default option.
The same applies to nights out. Saying yes to everything in the first few weeks can be expensive and exhausting. Choosing the events that matter most is not boring. It is sensible.
4. Make sure they understand overdrafts and credit
A student overdraft can be useful, especially if it is interest-free and managed carefully.
But it should not be treated as extra income.
The danger is becoming used to living in the overdraft without any plan for how it will be reduced later.
The same applies to credit cards, buy now pay later and short-term borrowing. They can make spending feel easier in the moment, but create pressure later if repayments start to build.
A simple message is: borrow only when there is a clear reason and a clear repayment plan.
5. Help them build a small emergency fund
University life comes with unexpected costs.
A laptop breaks. A phone screen cracks. A train ticket home costs more than expected. A course suddenly needs extra books, equipment or materials.
Even a small emergency fund can reduce stress.
It does not need to be huge, but putting a little aside at the start of each loan payment, or from summer or part-time work, can create a useful cushion.
The important thing is to keep it separate from everyday spending.
6. Agree how and when you will talk about money
Money can feel awkward, especially when a young adult is trying to become more independent.
That is why it can help to agree things early.
For parents, that might mean being clear about:
- whether any financial support is available
- how much it will be
- when it will be paid
- what it is intended to cover
- what happens if there is an emergency
For students, it means knowing they can ask for help before things become stressful.
The aim is not to monitor every purchase. It is to help them build confidence, independence and good habits.
Final thought
No student manages everything perfectly in their first term.
There will probably be a few mistakes, a few surprises, and at least one moment where a takeaway, taxi or impulse purchase seemed like a better idea at the time.
That is part of learning. The aim is not to make student life joyless or overly controlled. It is to give them enough structure to enjoy university without money worries taking over.
A few simple conversations can make a real difference: how to budget weekly, how to track spending, how to use borrowing carefully, how to save for emergencies, and how to ask for help if they need it.
University should be a time to learn, meet people and enjoy new experiences.
Good money habits can help make that possible.
Approver Quilter Financial Services Limited. 19/08/2026
About the author: David Braithwaite is a highly regarded financial expert, known to many as BBC Radio Kent’s “Money Mentor,” where he shares practical advice and insights on managing money effectively. As the founder of Citrus Financial, David has built a reputation for providing tailored financial guidance to individuals and families, helping them achieve their financial goals with confidence.
