Bank of Mum & Dad should be closed all semester, according to money expert

Parents often believe they’re doing the right thing when supporting their children financially at university. But whether it’s their first child leaving home or they’ve been through it before, are they really setting their kids up for financial independence?

It’s natural for parents to want to step in with extra cash from time to time. However, money coach Mindy Paul, who has worked with families across the UK, argues this should be a firm no.

He warns that over-reliance on the ‘Bank of Mum and Dad’ can hold young adults back from developing the financial confidence they’ll need later in life.

“I’ve witnessed a lot of parents put themselves under a lot of stress in an attempt to make things simpler for their children. However, providing them with too much protection now may make it difficult for them to support themselves later on.

In addition to outlining the dangers of being overly giving, Mindy offers his best advice on how to help your child become independent without abandoning them.

Why shouldn’t we be giving our kids handouts?

“While it comes from a place of love, constantly reaching into your pocket for your kids can actually hold them back.

“Financial independence isn’t just about money. It’s about building resilience, confidence, and the ability to handle tough situations when life throws a curveball.

“Most people will face money struggles at some point. But those who’ve had to find their own way through it often come out stronger and better equipped to cope when it happens again.

“Another big one is motivation. When students earn their own money, even just a little, they start to respect its value. They think twice about what they’re spending, and they feel a sense of pride that no handout could ever provide.

“Finally, as a parent, you’ve likely already forked out thousands, maybe even hundreds of thousands, raising your child. University should be the point where you start to prioritise yourself again.

“That might feel selfish, but it’s actually healthy. You can’t pour from an empty cup, and your child benefits more from a financially secure parent than one quietly struggling behind the scenes.”

How can you teach your child financial independence leading up to university?

Mindy Paul stresses that stepping back financially doesn’t mean stepping away emotionally. 

Here are his top tips for what parents should pass down before the term kicks off:

Help them build a basic budget

“Before they step foot on campus, they should know what’s coming in, what’s going out, and what’s left.

“Sit down together and map out a realistic monthly budget, leaving some breathing room for social stuff. If you get stuck at any point, use a free budgeting app such as Monzo to give you a helping hand.

“Ensure that they have full autonomy over this and avoid the temptation to supervise or control.”

Encourage earning

“When kids earn their own money, their whole mindset shifts. They start to respect it because they realise it comes from effort, focus, and showing up.

These days, they can make money without ever leaving the house, even if their study schedule is jam-packed.

“There are so many flexible side hustles out there, from online tutoring to selling digital services, freelancing, reselling, and even content creation. The opportunities are out there; they just need to look in the right places.”

Talk openly about overdrafts

“Many students fall into the trap of thinking overdrafts are bottomless pits of free money, but more often than not, that mindset comes from not fully understanding how they work.

“Without proper guidance, it’s easy for young people to get used to living in the red without grasping the consequences. The habit can stick well beyond university and turn into a long-term cycle.

“As a parent, you can support them by providing clarity. Help them understand that an overdraft should be a short-term safety net, not a regular part of their spending routine.”