Op you seem to keep back tracking. You say one thing and then when someone comments on it you say "no, no. I didn't mean that".
You said
. I have also got his online banking details so I can see what he is spending on, if I am to lend him money for rent/food and I see he is being frivolous I will not lend him any money and also money lent will not exceed £500, any lending will stop when he gets his next instalment.
Now you are saying
He wanted to put whatever money he had in my account when we talked about his spending, that’s where me having access cane from because if I had all his money and gave him so much every week how will he learn to money manage or self control.
They don't sound the same at all. The first sounds controlling and that your offer to help is dependent on him allowing you to control how he spends his money.
From what you say it sounds like you are swinging from one extreme to the other - controlling everything he does or walking away and leaving him to it. There's a middle ground.
As for how do you raise them to be grateful - well they learn they don't get everything that they want, they learn the value of money, they have to say please and thank you, write thank you letters, earn pocket money, save up for things and not get everything immediately...
Did you discuss with him the pros and cons of living at home vs living away? Did he work out how much each would cost, how much loan he would get? How was the decision made to attend this uni and live at home?
It's surprising that he only moved in last night but is coming home tonight. Has he talked to you about what is going on? Is he happy? Why is he coming home less than 24 hours after moving in?
I'd be concerned that there's something not right going on.