Money problems trigger mental health problems

A quarter of young people suffer mental health problems because of their finances.

Stress caused by money troubles is particularly felt by young people – according to new research – due to their lack of financial education.

A study by Citizens Advice and young people's charity YouthNet reveals one in five 16 to 24-year-olds admit crossing their fingers and hoping they don't run out of money at the end of the month was how they managed their finances.

Furthermore 47 per cent had suffered debt problems.

The high levels of young people suffering debt trauma was in part due to them feeling they are offered credit they cannot afford.

Some 68 per cent of those polled said had been encouraged to take out credit they did not want or could not afford.

Four-fifths have taken loans, credit cards or been issued some form of credit in the past.

Janet Roberts, grants manager at HBOS Foundation, which is offering £300,000 to promote financial education among young people, said: "This report highlights the serious strain bad financial decisions can put on people's mental health as well as on their pockets.

"But it also points out how and where young people want to be supported with their finances. Over the next three years we'll work closely with Citizens Advice and YouthNet to use the internet to help young people make informed choices about their finances, giving them the information they want, where they want it."

For young people heading into financial trouble parents were the first port of call.

Nine out of ten young people turn to mum and dad when facing financial woe, while 76 per cent turn to friends for advice. Some 67 per cent of young people turn to the internet for help.