The Financial Services Authority (FSA) has warned that millions of young people are unable to manage their financial responsibilities.
It said that 18-40-year-olds are facing greater financial responsibilities than ever, particularly in regard to pensions, while easy access to credit encourages spending.
The FSA said that there is an urgent need to help train young people to manage their financial planning.
It is planning to launch a wide-ranging new financial training programme, educating people in school, colleges and their workplaces.
Research for the FSA showed that while most people were able to manage their day-day planning, their remain failures to plan for the long term.
Almost two fifths of respondents to an FSA poll agreed that they had a “live for today” attitude.
“The ability to manage money grows with age and experience. But rapidly changing economic and social trends mean that today’s 18-40 year olds are faced with greater challenges than were faced by their parents,” said FSA chief executive John Tiner.
“They have greater access to credit and are becoming consumers at an earlier age. On top of that, the costs of higher education and of retirement are being increasingly borne by individuals rather than the state or employers.
“This combination of pressures means that the cost of not having the necessary skills to make sound financial decisions is becoming increasingly significant.”
The FSA is preparing to launch a nationwide strategy designed to help people manange their financial future while responsibly taking advantage of best rate credit and loans.
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