To think I will always have financial stress now others have pointed this out?

You are in no way whatsoever struggling to make ends meet. I presume on your salary you must be intelligent enough to know this and if you don't, get some help, seriously.
It's sensible to plan ahead if you can BUT none of us knows what tomorrow will bring. Your daughter is six, a delightful age, but she will grow up very rapidly. You will still have your daughter but that lovely little girl will be gone and you will only have your memories of this time. It is so precious. Please enjoy having fun with your daughter now, make the memories together, relax, make sure she knows how lived she is and she will fly.

You could downsize when she goes to Uni/Leaves Home/Turns 18

That’s our plan. We own a home worth 460k, but only have £110k in equity. Our plan is to pay the mortgage off by the time my husband is 60 and our son will be 18. We then downsize to a two bed apartment, release at least £200k equity and gift our son a deposit for a home. We then live mortgage free. We only contribute 8% of my husbands salary but his employer also contributes 8% so 16% into a pension is not too bad. On projections we’ll be comfortable during retirement.

I have 4 siblings, we all went to Uni without a penny of support from our parents as they weren’t able. We’re all doing fine. Some of us moved away and got into more debt to pay living costs and some stayed at home during Uni and have less debt. So your DC also has that option and taking out a loan for the fees. They will be fine. Equally they may not go to Uni. My husband has a well paid job and never went to Uni he did an apprenticeship NVQ followed by a HND all paid for by his employer. He’s now been working in his field for over 20 years.

Ok, what the hell is going on with your financial and household management? There is no way with the figures you are posting that you should be skipping meals at the end of the month.

I assume it is just you and your daughter? We are not economising particularly and spend between £60 and £80 a week for food and other groceries for two of us and that leaves plenty in the cupboards and the freezer.

If I did zero food shopping this week I could easily cobble together some freezer and cupboard meals.

With all due respect OP you are not struggling to make ends meet. You can’t say your being forced to miss meals if your popping £200 a month away into a savings account

What planet are you on?

It's not the same as mine that's for sure

You are financially secure and certainly aren't struggling

Like others, I am baffled as to why you run out of money for food at the end of the month.

Your salary is high, yes I know it's not MN six figures but it's more than most ppl earn. What are you spending it on that you have none left?

Your net income is around £3.5k, of which I guess £1.2k is mortgage, £200 savings. Where's the other £2k going?

I saved into a stocks and shares ISA for my DDs, started off small and increased the amount every time I got a pay rise. I had enough to pay for their accommodation costs at Uni, which was about 4K per year. Don’t forget that when your dc actually go to Uni you can stop saving for them and give them that amount monthly instead.

She's 6. Stop starving yourself. Take the £200 a month you normally save. Spend £50 on more food, put £150 into your mortgage. As said, you can sell when she turns 18 and downsize or do the same on retirement. Or by overpaying now, you can remortgage at the time for a longer term on a much smaller mortgage so you can afford to help.

Very few can afford to help DC at uni. She can plan for this. Get a job at 16 and work summers to save up to top up her loan. Work while she's at uni. Use any inheritance for it.

Pay down your mortgage now, and then in future downsize.

200 extra a month seems pointless? I owe so much still? And then what if she does go to uni and I have absolutely nothing to support her? So stressed about it all

£200 a month is a good amount. Why will you have nothing to support her at uni? Will you not be working? What’s the £200 a month for?

You sound pretty much ok to me!
Your DC, if they go to uni, will be eligible for student finance so why are you stressing? I also disagree with the whole leaving them with a massive debt worry as they just repay it through tax when they’re earning a certain amount.
Is say overpay on your mortgage a little as well as save. When/If DC goes to uni you could top them up with a couple of hundred a month from your salary if they need it. Lots of kids survive uni without parents financing.
Downsizing could be an option but I’d leave it til DC is ready to move out then some of your equity could become part of their deposit.
I think you’re doing great OP. Stop catastrophising!

You need to reframe OP. You do not have 'no money left at the end of the month' when you have 20k in savings. You have 20k left at the end of the month. It's a bit of an insult to those who truly have no money. I assume your DD is not going without meals for three days a month because if she is, that's awful and abusive.

You're doing well money wise. You need to unpack these issues you have around security and money. You have my sympathy, I have some issues there myself, mainly from growing up low income.

Well this is a bit odd, I think you have made your salary stretch really far so well done.

If you are going to save for her, open a long term savings account like a LISA where she gets 25% bonus in the money.
If you are doing OK don’t downsize until she’s ready to move to UNI, the house prices will increase for the value of money reduces.

£2500 plus £200 7% interest will give £48,000 in 12 years -

I think it’s a good idea to set them up and help them out, but not at the cost of not eating.

Check you suppliers for gas/electric,

Set up an account and find out where there’s leakage in your spending.

I feel like I’m in a very good situation and I have far far less than you. And far more outstanding on the mortgage. As lots of others have said - perspective!

You’re stressing about Uni and your dd is six years old? That seems a bit extreme.

With your salary, your equity and your savings you’re doing a lot better than many people.

Why would uprooting her be cruel when you will be mortgage free and have far more disposable income. Do you even need to support her through uni. Have you checked if she would be eligible for any student finance if she decided to go?

I’m guessing you’re in London?

You’re extremely well off. You live in a half a million house (which I know in London probably isn’t amazing but elsewhere would be a beautiful large house in a scenic area). You have a large rainy day fund of 20k. A high salary.

I’ve just calculated that at your savings pace, DC would go to uni with 28.8k. Without accounting for interest. That’s more than most kids. Many kids get nothing from their parents for uni.

I would advise you stop saving for that and overpay your mortgage instead though - if the contract allows.

That may allow you to save more aggressively closer to time (new mortgage with lower payments/ better rate) or release equity.

If you are hand to mouth now, maybe reduce your pension payments for a year too to get cash in hand.

Sounds like you need a proper budget though. And maybe see a financial advisor.

You seem really worried about something 12 years down the line, and hypothetical. Change your budget now to eliminate your immediate worries. Many kids don’t get any money from their parents through uni and work FT in the summer holidays to get the spending money they need for each year. IMO these kids are already ahead by graduation time.

Why are you choosing to go without meals when you have a substantial amount of equity and savings. That sounds a bit dramatic…..

Can you give a breakdown of income/expenditure?

You are on a normal good path. Paying mortgage, having a decent rain day fund.
The most important investment you can do for your DD just now is keeping yourself healthy so you will be there for her.
That means: don't save 200 for her, save a hundred and feed yourself properly for the rest.

You are building equity through your mortgage. If you manage now just fine, you can keep as you are doing and decide to downsize any time later.

We earn a lot more than you, have 2 DC and don't save into a 'uni fund'. We do save for the kids but less than that. I'm fairly sure my kids will go to uni but we'd be expecting them to take out loans and work etc. It seems a shame to put your lives on hold and sacrifice things to put money aside for something which may not happen or if it does could be funded through other means.

Plus, provided you can pay your mortgage without much pain and it will be paid off before you retire, the size of your mortgage is pretty irrelevant. Think of it the other way - when you retire you will have an asset worth at least 550k which you can then use to downsize and give you money to live on. You are making a good contribution to your pension. I’m really not too sure what you are worried about to be honest.

You're big ridiculous. I'm 40 next year, do not own a house, have only in the last year started saving, nothing saved for dc. My dc will probably get an inheritance from my parents a ranction of the amount you currently have saved for a uni fund. I had a friend who pleaded poverty from her lovely home with a tiny mortgage furnished with very expensive furniture. She went without meals because she didn't want to use her savings. Her priorities were all wrong and I'm not sure she managed her income well at all and it got tiresome listening to her tales of woe about how little food she had that week then asking how her new haircut suited her. I've not eat because I couldn't afford to, I had to put bills on credit cards, walked miles as I couldn't justify the bus fare.

Op, stop saving and eat.

I am assuming you are in the UK.

If/when DD is thinking about uni it is highly likely that student loans will still exist. The loan will cover fees (if applicable) and an amount towards maintenance.

The amount she will need for maintenance is normally needed week by week. You don't have to have it all saved up before she goes. Remember that when she is away she isn't eating at home.

I think the cost of uni has built up in your mind as a huge insurmountable mountain. You are panicking about it when you really don't need to.

I vaguely remember I had to cover about 50% after parental salary was taken into account. My parents were newly divorced and couldn't have given a toss what I was doing. I absolutely had no choice but to use my own savings and held down two jobs term time and one in the holidays. Just seems insane some parents feel they have to cover the difference.