NEARLY three-quarters of young adults in their 20s admit to making money mistakes during their first few years of financial independence, according to research for a Government-backed body.
An "explosion" of financial opportunities for over-18s - including offers of new accounts, credit cards, store cards and loans - often overshadows the ability of young people to appreciate their consequences, according to a report by the Money Advice Service (MAS).
Some 72 per cent of 20-somethings surveyed said they had made a financial decision early in their adult life which they now regret.
The report, titled It's Time to Talk: Young People and Money Regrets, raised concerns of a "spend today, worry tomorrow" attitude.
It highlighted how young people can end up paying the consequences of their bad decisions for years.
Nearly half (47 per cent) of those who had made mistakes said they felt "depressed" about it and 28 per cent struggled to afford everyday essentials.
More than one-quarter (27 per cent) of 1,000 young people surveyed said they had blown their budget on a holiday, while seven per cent had bought a car that was beyond their means. One in 11 (nine per cent) had moved into a flat or house they could not really afford.
One in 10 (10 per cent) had taken out high-cost credit, while 22 per cent had spent too much on credit cards.
The report highlighted the case of 25-year-old "Harry" from London, who ended up thousands of pounds in debt after buying a car to "impress the girls" using his student loan.
He ended up dropping out of university and taking on three jobs to repay the debt.
Of those surveyed who had made money mistakes, 42 per cent had borrowed from parents or friends, while one in nine (11 per cent) were forced to move back in with their parents.
Kirsty Bowman-Vaughan, young people policy manager at the MAS, an independent body set up by Government, said: "I would urge anyone in the early years of adulthood to get into the practice of living within their means."
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