You are assuming that they screwed up somehow, but the truth is you've just been lucky so far.
Nope. Not assuming anything. But if people were taught how to manage their finances better, they would have money in savings and not being wasted on the latest LCD big screen smart TV, iPhone, game/console, fireworks, or travel package to Vegas.
About 2010, i heard a comment from Warren Buffet that he did not own a single flat screen TV. Today they are pretty affordable, but when plasma was the thing to get, you're talking thousands per TV. When LCD came out, the largest were in that same ballpark. That's many thousands he put to work for him making more money rather than consuming the most recent tech or fad.
So, when you talk about someone screwing up, it's not always about blowing your money each week on drugs or having to pay to get out of jail for doing something stupid. it can also be failing to learn/teach yourself how to be responsible, and how "trying to keep up with the Joneses" is usually going to end poorly.