Vulnerable youngsters must be given more help to manage their money, a group of MPs has warned.
Young adults such as care leavers need extra support with their finances outside of mainstream schooling to improve their future chances in life, according to a new report by the All Party Parliamentary Group (APPG) on Financial Education for Young People.
These youngsters are often expected to live independently earlier than their peers and can face big challenges in making ends meet.
The report - the result of a 10-month inquiry - says that the Government's decision to include financial education on the national curriculum was "a step forward".
But it goes on to warn that teenagers who have become disengaged with school, or have other problems to deal with may need extra support.
Young people often first come into contact with money at home as children, but those from vulnerable backgrounds can lack good financial role models, or a stable home life, and may not learn good money habits, it says.
The report says that previous research has found that someone is less likely to be able to look after their finances if they are younger, do not own their own home, do not have a current account, are unemployed or permanently sick or disabled, have few or no qualifications, a single parent, on a low income, living in a disadvantaged neighbourhood or were not born in the UK.
At the same time a "highly consumerist culture" can make a young person feel judged by "what they have, rather than who they are," the report says.
It adds that in this context "it is hardly surprising that a young tenant may think it is more important to have the latest trainers rather than paying the rent or buying food".
The APPG says the findings show that if young people are helped to manage their finances, it not only improves their ability to make the most of their money, but also has an impact on their wellbeing.
"Financially capable young people are less likely to be stressed, or in debt," the report says.
"For young people with chaotic lives, attaining control over their money can be the first step on a path to greater resilience and control over other interlinked aspects of their lives."
It adds that financial education could also save money for public services - for example local councils dealing with fewer housing evictions.
The cost of poor financial management is particularly important to the housing sector as vulnerable young people can be at a higher risk of getting into rent arrears and further problems as a result.
The APPG makes a series of recommendations including calling on government to enable organisations such as the NHS and the youth courts to train staff to help vulnerable youngsters learn to manage their money or direct them to where they can find out more.
It also says that banks should give youngsters appropriate advice, especially when they first open an account or it is clear they are running into difficulties.
Chair of the inquiry Fiona Bruce, Conservative MP for Congleton, said: "The inclusion of financial education in the National Curriculum for secondary schools has been a big step forward - but it is essential that vulnerable young people outside mainstream education are not left behind."