Mother Refuses to Let Daughter Use College Fund for Wedding or House

A mother saved up a college fund for her four children. One child dropped out, and another was recently accepted into college. However, the mother panicked when the daughter mentioned using the fund to pay for school. The mother told the daughter that she couldn't have the money because it was strictly for college, which upset her daughter. She later called to beg for the money, promising to use it for a down payment on a house or a wedding. The mother told her she could have the money if she went back to school and whatever was left over, she could use for whatever she wanted. The daughter got mad and hung up. Now, the mother is being harassed by her daughter's fiancé's family because they aren't as fortunate and the daughter hasn't been able to get a job without a diploma. Is the mother in the wrong for not giving her daughter the college fund? The situation gets resolved after they have a discussion, but not before the mother is left wondering if she's in the wrong.