Least Financially Savvy States: Washington DC Is Second To Worst
With April being Financial Literacy Month and more than 40 percent of U.S. adults rating their knowledge of personal finance a “C” or lower, the personal finance website WalletHub conducted an in-depth analysis of 2016’s Most & Least Financially Savvy States.
In order to identify where Americans practice the best money habits, WalletHub’s analysts compared the 50 states and the District of Columbia across 20 key metrics that speak to financial savvy or the lack thereof. Our data set ranges from annual savings-account average to personal-bankruptcy rate to credit-card debt as a percentage of income.
| Most Financially Savvy States | Least Financially Savvy States | ||||
| 1 | Minnesota | 42 | Alabama | ||
| 2 | New Hampshire | 43 | District of Columbia | ||
| 3 | North Dakota | 44 | Louisiana | ||
| 4 | Connecticut | 45 | Georgia | ||
| 5 | New York | 46 | Tennessee | ||
| 6 | Massachusetts | 47 | Nevada | ||
| 7 | Wisconsin | 48 | Mississippi | ||
| 8 | New Jersey | 49 | New Mexico | ||
| 9 | Pennsylvania | 50 | Arkansas | ||
| 10 | Iowa | 51 | Missouri | ||
Comparing the States
- Hawaii has the highest total debt as a percentage of median income, 286.51 percent, which is two times higher than in Mississippi, the state with the lowest, 127.61 percent.
- New Jersey has the highest foreclosure rate, 4.30 percent, which is 14 times higher than in Alaska, the state with the lowest, 0.30 percent.
- Michigan has the highest housing expenses as a percentage of median home price, 5.02 percent, which is three times higher than in Hawaii, the state with the lowest, 1.76 percent.
- Hawaii and Nevada have the highest percentage of the population spending more than they make, 23 percent, which is two times higher than in Maryland, the state with the lowest, 14 percent.
- District of Columbia has the highest auto delinquency rate, 5.5 percent, which is four times higher than in North Dakota, the state with the lowest, 1.5 percent.
- New Jersey has the highest mortgage delinquency rate, 5.4 percent, which is nine times higher than in North Dakota, the state with the lowest, 0.6 percent.
- Arizona has the highest percentage of residents with rainy day funds, 53 percent, which is two times higher than in Indiana, Mississippi and New Mexico, the states with the lowest, 33 percent.
- Mississippi has the highest percentage of unbanked households, 14.5 percent, which is eight times higher than in Alaska, the state with the lowest, 1.9 percent.
For the full report and to see where your area ranks, please visit:
https://wallethub.com/edu/most-and-least-financially-savvy-states/20496/
