THREE-QUARTERS of young adults make mistakes with their money which haunt them for years to come - but it is never too late to learn to manage better.

A survey by the independent Money Advice Service found that 72 per cent of 20-somethings regret spending decisions they made in their first years of financial independence.

Almost half felt depressed as a consequence, and many were no longer able to afford everyday essentials.

Kirsty Bowman-Vaughan, the service's Young People Policy Manager, said: "It is so easy to get into financial difficulties when you are young and not aware of all the risks of credit.

"You suddenly see all these letters from banks offering you a big overdraft or a credit card and it can seem like you have hit the jackpot. But, of course, the reality is you don't actually have any more cash at all - simply lots of ways to get into debt."

Over a fifth of survey respondents said they spent too much on credit cards, with 15 per cent saying their debt spiralled out of control. Ten per cent admitted they had taken out high-interest credit, such as payday loans, and 36 per cent confessed to using their overdraft as if it was their own money.

As a result, 47 per cent said they were depressed, 28 per cent could no longer pay for basics such as food or transport, 20 per cent couldn't meet their monthly bills, and 27 per cent were left with a poor credit rating.

Anyone who feels their finances are getting out of hand needs to rethink their spending immediately, before things get any worse.

Ms Bowman-Vaughan said: "I would urge anyone in the early years of adulthood to get into the practice of living within their means. Any credit you take out now not only needs paying back, but paying back with interest, so you are losing out in the long run."

When you are first earning, it can be very tempting to keep spending, but if you don't want to end up burdened with debt for years to come, draw up and stick to a monthly budget and get into the habit of thinking carefully about everything you buy.

Before you spend on something, ask yourself if you really need and can afford it. Consider whether, if you go ahead, you will still think it was a wise decision in a week or a month's time.

If you are certain it is the right thing to do, always shop around before committing yourself. Use websites such as google.co.uk, ebay.co.uk and amazon.co.uk to find the best possible deal.

For financial products, check out a range of comparison sites and always read the small print before signing on the dotted line.

Avoid payday loans and unauthorised overdrafts like the plague, as you will be pouring money down the drain.

If you really have to borrow, be doubly sure your planned spending is worth it. Look for a low-cost credit card, agreed overdraft or personal loan from a bank, building society or credit union.

Go for the minimum amount of credit and the lowest interest rate you can find.

Be certain that you understand the total cost, any payment penalties and how long it will take to clear the debt - and that you can afford the repayments, now and in the future.

Ms Bowman-Vaughan added: "We have a great young people's hub on our website which offers a wealth of advice and tips on how to manage credit and debt sensibly, budget your money, or get help if you need it.

"We also have a new 'Wishfund Savings Goal' app - details at Moneyadviceservice.org.uk - which demonstrates just how rewarding it can be to save up for something you really want - an invaluable life lesson."

Financial education has been on the Scottish school curriculum since 2008, but teachers may lack the time and knowledge to give the subject the attention it deserves.

Paul Heward, project manager of the Stewart Ivory Foundation, a charity helping educate sixth-year pupils about money, believes more needs to be done.

He said: "We focus on school leavers, but that's only part of the story. There is some really good work being done in schools, but it needs to be done on a more coordinated and consistent basis."

Parents and grandparents also have a vital role to play in ensuring young adults are properly prepared to take control of their finances.

Ms Bowman-Vaughan said: "Parents should speak to their children about the dangers of unmanageable debt. The attitudes we form towards money in our earlier years tend to impact habits for the rest of our lives.

"The knowledge and experience of those a little older can be a more realistic and comfortable conversation - and a good alternative to parents to turn to."