Ask an Adviser: Your Money Questions Answered - July 2026

Ask an Adviser returns this month, continuing the conversation and answering more of your most pressing money questions.

This is your opportunity to ask any questions, gain insights, and receive practical guidance tailored to your needs. Whether you're considering how to help your children get on the property ladder, or need clarification on key topics like wills, funding education and care costs, our experts are here to help. 

In this edition, we are talking about financial advice. Adviser Pooja Shah answers the question: 

"How much financial support should I realistically plan to provide my child during university, and how might this affect my own long-term financial security? Are there any good financial habits we could pass on before they leave home?"

 "It's a great question but there's no single "right answer" here. The amount of support you offer a child through university will be dependent on your situation, so it's important to understand what support you can realistically afford. The key is finding a balance between helping them today and making sure you don't put your own financial future at risk. Also, bear in mind if you have more than one child to consider as this will naturally double or treble costs!  

Before you commit to anything though, it's worth having an open conversation about expectations so it’s clear what costs you’re willing to cover, what they would be responsible for, and how long any support would last.

It’s a fair starting point to consider that each year at university will cost £23,700 - this can be broadly broken down as: 

Tuition fees £10,000 and Living costs including housing £13,700[1]. This amounts to £1,975 per month if you want your young person to leave university debt-free. 

However, there are usually more options available to students to fund their education than there are for parents to fund retirement or make up any shortfall later in life. 

You can get a Tuition fees loan for the £10,000 and a maintenance loan too, which is means-tested and depends on whether you are in London or not, or living at home. In 24/25 the average was £7,678 a year[2], so clearly not enough to cover all the likely living costs. 

They will have to repay 9% of their future income over the repayment threshold, which is currently £25,000 a year. Sadly, the interest added is inflation as measured by RPI PLUS 3% each year! You can read more here: Student loans: a guide to terms and conditions 2026 to 2027 - GOV.UK 

If you have investments or spare cash (and if you are aged over 55 you could also access any personal pension) you could draw an income to pay for your young person’s costs, or withdraw capital in tranches, but you would have to make sure you still have enough to meet your own needs (either now or in retirement), so undertaking a financial modelling exercise to determine affordability is always a good idea.   

 Some families are claiming the full loans, but then investing the money or at least holding it in a high interest savings account to offset the interest charges, so that they have the capital if they need it.  The loans can be repaid at any time, but there is no guarantee that the interest or investment returns will be greater than RPI + 3%, so it’s potentially a risky strategy. 

You could also encourage them to build the habit of saving (and investing) regularly, even in small amounts. A Junior ISA is often the starting point to discuss money with your young adult.  You can suggest they consider allocating it in proportions – maybe 5% to charity, 10% play money, 85% sensible things like driving lessons, travelling, and a contribution towards uni costs?! 

In this modern world, they’ll need to develop a credit score, so it’s worthwhile helping them to understand how to use credit carefully and avoid borrowing more than necessary. 

Once they are 18 it’s a good idea to set up their mobile contract in their name, even if you are paying for it, so that they start to have a financial identity which will mean they can access other forms of credit in future.  

University is a great time to encourage healthy money habits. Before they leave home, consider helping them to: 

• Create a simple budget for each month 

• Understand the difference between wants and needs – the essential items and the ‘nice to haves’ 

• Track spending and understand where their money goes (many banking apps can help with this these days) 

Finally - teach them to cook as this could save them hundreds of pounds a year. Make sure they have a reasonable saucepan and a medium wok – better than a frying pan as it’s more versatile! And one decent cook’s knife. 

With careful planning, you’ll all be well prepared."

Written by Olivia Bowen

References

Information is accurate as of 22.06.2026. Opinions constitute the adviser's judgement as of this date and are subject to change without warning. This material may not be distributed, published or reproduced in whole or in part. With investment, capital is at risk.