Well, it really depends. Why did the child get the job on campus in the first place? Did they get it because parent isn’t giving them enough $ and they wanted to make some of their own money? If that’s that reason then yes the kid should keep the money and the parent should think about it. Perhaps they got the job because the parent was trying to control everything and every $ they spent. Another thing the parent should think about. Maybe it’s just to start showing some independence so that they have something of their own.
I have a child who is in an internship now and is thinking about doing an internship in the fall or some tutoring. Her father and I have always paid for all of her schooling and given a monthly allowance. If she gets a job and can maintain her studies then great for her. I’m not going to reduce what I give her. I don’t want to “penalize” her for getting a job or disincentivize her from earning her own money. What’s the point then? If she starts working and I reduce what I give her then there’s no benefit to her other than working her butt off and yes learning hard work. The only time she has to pay her expenses will be when she has a required senior year internship where she will earn $4-5k a month.
The only other suggestion I can think of if parent wants to reduce some of what they’re paying is that for every $2 the student makes, the parent reduces what they pay by $1. That way there is still incentive for the student to work and it’s not a $1 to $1 reduction.