I see you've decided, but actually think that 25% is pretty low.
A working, grown up child in 99% of cases likes to think of themself as an adult - in which case they need to understand that your wages are there for you to be able to pay your way in life. Which adult has 75% of their wages to fritter away on luxuries / going out / treating self???
None I know.
I don't think you (as in generally, to the people saying they wouldn't take anything, not you OP) are doing them any favours to let them think they have so much spending money.
If my dc come home to live after University, I will be sitting down and working out with them what it would cost for them to live anywhere else - rent, bills, (insurances, utilities, internet, etc.) food, laundry, repairs, sundries they sneak onto the shopping list, and be using that as a starting point for them to negotiate down from.
My parents always asked us for a realistic amount and I'm very glad they did - it meant we all had to learn how to budget, we all had sensible expectations about what we had left to spend after bills, and, as it turns out (but we didn't know this at the time) they were then able to give each of us a generous gift when we bought our first properties, from the money we'd paid that they didn't need for the household budget. I was very grateful for that a) education and b) gift. I think once you've got used to having loads to spend, it's much more difficult to then go without it, once you start paying commercial rent or mortgage and simply don't have that kind of spending money.