A study investigated what Scottish and English young people consider important life skills, how they believe they develop them, and how necessary they see them to their future lives. More than 200 16-21-year-olds examined photographs of events related to basic life tasks, family, close relationships, work or school and leisure activities and then identified skills involved. Life skills they identified as important largely agreed with those described by education authorities. They considered the most important, essential life skills to be communication and interpersonal skills. Young people believed these skills were also those that employers consider essential; valued and saw employment experience as the major influence in developing life skills; added creative and aesthetic skills and physical and coordination skills to the traditional list of key skills; described wide applications of problem solving and critical thinking skills; and saw family, work, friends, and school as the main influences on skill development. Future considerations were identified as school curriculum; work experience; creative and aesthetic skills and motor coordination skills; interagency cooperation; information and communication technology; socially disadvantaged young people; community education services; learning support; and promotion of a culture of learning. (Appendixes include 17 references and life skills matrixes for 16- and 21-year olds.) (YLB)