Young people are increasing living beyond their means.

The trouble seems to be that they're currently spending what they haven't got, or what they can't afford - and this will impact greatly on their lives.

It may seem boring to plan ahead and start saving for the future but surely it's better than being in the red for the rest of your life.

In today's credit card age, young people generally seem to want everything right now, regardless of whether they can afford it. Buy-now-pay-later schemes simply entice those who want something at all costs to get it, instead of being prepared to save.

Then there's the materialism society seems to be swamped in. Young people are often influenced by the high-spending celebrities they read about and see on television splashing out on the latest designer must-haves. Some youngsters feel they have to keep up and budget labels don't cut it with their peers.

What they don't realise is that spending what they haven't got will massively impact on their financial situation in the future, often to the extent where young people find their first few years' pay packets absorbed by repayments for debts.

Research carried out by Skipton Building Society found three quarters of young people are struggling with debt, which is preventing them from saving for their future.

Today's young people are so strapped for cash through repaying loans that they can't contemplate putting anything away for a pension, yet the average under 35-year-old hopes to retire at 63 on around £28,000 a year!

Skipton Building Society claims that to afford to retire at this age, people would need to have a pension of £271 a month. And if they want to retire on their target sum of £28,000 a year, they are likely to have to continue working until they are 76.

Staggeringly, the survey found that around 74 per cent of people aged under 35 are in the red. On average they owe more than £9,000, while 12 per cent owe more than £20,000.

Half of the 1,207 people aged under 35 interviewed ran up debts on credit cards; 33 per cent have a student loan; 28 per cent have a bank loan and 12 per cent owe money on store cards.

Many try and recoup the cash by borrowing from relatives. The survey found 12 per cent owe money to their parents while four per cent borrowed cash from other relatives.

Many young people are forking out more than £200 a month in debt repayments - their second biggest outgoing after meeting a mortgage or rent. Twelve per cent are paying out more than £500.

On average, young people spend twice as much on servicing their debt as they do on socialising and more than three times as much as they pay into a pension.

Four out of ten people say they are struggling financially, with 18 per cent admitting they spend more than they earn each month. Nearly half have less than £100 left at the end of the month.

As a result, 18 per cent admitted they delayed paying bills in an attempt to make ends meet while 15 per cent put off debt repayments and ten per cent have stalled on their rent or mortgage.

One in five of those questioned claimed their lack of money had led to them not eating properly and 19 per cent said they had been forced to take on an extra job.

Nearly 50 per cent of them have less than £1,000 in savings and 22 per cent have nothing set aside at all.

Talking to Bradford University student, Lizzie Sheppard, I can sympathise a little with the situation today's young people find themselves in. Lizzie is conscious of the future and is currently juggling two or three jobs in between her studies to ensure she can make ends meet.

She is currently in the final year of her chemistry, pharmaceutical and forensic sciences degree. By the time she completes the five-year course, she estimates her final student loan will be in excess of £20,000.

Lizzie says that despite universities offering financial advice on how to budget, many young students are eager to spend during their first year away from home. She says many learn as they go on.

"I try my best at budgeting, but when you're away from home you have all this money and you will spend it," says Lizzie. "You don't really learn how to budget for living costs or rent."

Lizzie learned to manage her finances along the way. She knows she has a hefty sum to pay back but she has a system in place to cope. "You never know if you will have enough money to afford a car or a mortgage."

She says the best way to avoid racking up loans is to leave bank and store cards alone. "I don't want any money that isn't mine," she says, soundly.

"It's hard enough as it is, because when you are at university you have a certain amount of money through the Student Loan Company, so you have to budget and you have to make sure it lasts for the whole year.

"I have two or three different jobs; I work in a bar and as a play worker in the holidays. You have to earn as much money as you can while studying and you have to make sure you are doing enough studying to pass your course. It's a bit of a juggling act."

Given their financial situation, I ask whether they can afford to do all that socialising that students are famous for! Lizzie accepts that some students still find the money for going out, although she says they tend to have cash tins at the back of the cupboard - just in case. Surviving on the popular student staple of beans on toast means they can still socialise without foregoing food!

"It is hard because you have to make sure you have enough money to make ends meet," says Lizzie.

She says she is also feeling the pressure to find a lucrative job - and one with a decent pension - once she completes her studies, but she knows it will be worth it.

Zafar Kayani, manager of Bradford's Information Shop for Young People, says 20 per cent of the young people they see are seeking help relating to debt.

He believes naivety is one of the main reasons why young people end up in financial difficulty. Some sign up for things they can't afford because of expectations to lead a certain lifestyle.

"There are a number of reasons, but one of the major things is society in general because of the image," says Zafar.

"We live in a society that portrays success and if you don't become part of it, you are not in that level."

Mobile phones and the assorted accessories that go with them have become a must-have among today's young people, whereas several years ago these wouldn't have been seen as necessities.

The general rising cost of living also forces some into debt. Many young people are seeking help after falling behind with rent.

So what does Zafar feel needs to be done to remedy the situation and enable young people to save for their future? He says education is the answer.

"They need to learn how to budget and how to manage money," he says.

  • For more information visit youthfax.org or call the Bradford Information Shop for Young People on (01274) 432431.