How Financially Smart is Your State? See How You Rank Here
August 25, 2015 | Your Finances
Everyone’s state has a claim to fame.
Maybe you have access to amazing natural parks, you’re consistently named one of the fittest states, or you have a top university that brings the brightest scholars to your corner of the country.
But how does your state stack up when it comes to money matters?
In a new report, WalletHub set out to determine which areas of America score top marks for financial smarts—and which fall shockingly short.
And considering one in four Americans currently sock away less than 5% of their income, it’s probably not surprising that many states had their fair share of financial shortcomings.
Still, it wasn’t all bad news. As the report found, some states are making significant strides to ensure financial wellbeing becomes a priority.
Ranking Financial Literacy, State by State
WalletHub used 11 key metrics—including financial education programs and residents’ credit card debt—to calculate the financial literacy of all 50 states, plus the District of Columbia.
The results: New Hampshire edged out Utah for first place, bolstered by metrics like its low high school dropout rate, and fourth-least rate of unbanked households.
Mississippi, however, wasn’t so successful. The southern state fell to last place, thanks to its lack of residents with a rainy day fund—the worst rate in the country—and overall unhealthy money habits.
What other areas filled out the best and worst lists?
States With the Best Financial Literacy Rates
1. New Hampshire
5. New Jersey
States With the Worst Financial Literacy Rates
47. New Mexico
If you’re curious how your home state compared, head to WalletHub to check out the full report.
LearnVest, Inc. is owned by NM Planning, LLC, a subsidiary of The Northwestern Mutual Life Insurance Company, Milwaukee, Wisconsin.