With October being National Financial Planning Month and about 45 percent of U.S. adults grading their knowledge of personal finance a “C” or worse, you might want to check out this report on 2018’s Most & Least Financially Savvy States to see where you stand.
Some financial experts believe financial literacy is the key to sound financial health. But financial savvy is what separates the comfortable from the very stable, according to the website WalletHub.com, who performed the study.
The report also states that unfortunately, a staggering lack of money intelligence plagues Americans, according to a study on financial literacy conducted by the National Foundation for Credit Counseling. Additionally, three out of five admit they do not follow or keep a budget, a lifelong skill that every adult should master beginning when they are in high school.
Smart and savvy
As this report reflects, however, residents of certain states are smarter than others when it comes to balancing their household budgets. To determine where American consumers set the best example, WalletHub compared the 50 states and the District of Columbia across 24 key metrics that represent financial savvy — or those lacking, it said. The data set ranges from median credit score to annual savings-account average to credit-card debt as a share of income.
For example, if you happen to live in the Golden State, these are the Financial Savvy numbers in California (1=Most; 25=Avg.):
- 19th – Median Credit Score
- 50th – Mortgage Debt as % of Median Income
- 34th – Foreclosure Rate
- 33rd – % of Credit Usage
- 3rd – Housing Expenses as % of Median Home Price
- 29th – % of Unbanked Households
- 21st – Delinquency Rate on Mortgages, Auto Loans, Student Loans & Credit Cards
- 24th – % of Adults Spending More than They Earn
- 5th – % of Adults with Rainy-Day Funds
- 6th – Total Debt as % of Median Income
Other fun stats
- Other interesting stats include: Minnesota being first for having the highest median credit score, followed by North and South Dakota (tied), Hawaii and Nebraska. On the flip side, the states with the lowest median credit scores include: South Carolina at No. 48, Louisiana Nevada, tied at No. 47, Alabama at No. 50 and Mississippi coming in last at No. 51.
- The states reporting the lowest foreclosure rates are: North Dakota, South Dakota, and Montana. The states with the highest foreclosure rate: Illinois, Florida and Maryland.
- States reporting the lowest percentage of credit card usage include Ohio, New Mexico, Wyoming and Colorado. However, those states that like to use plastic and have the highest percentage of credit card usage are: Tennessee, Nebraska, Connecticut, Alabama and Illinois.
If you’re curious as to your own state’s numbers, you can review the grid below for the most financially savvy states below:
|Overall Rank*||State||Total Score||‘Debt & Spending’ Rank||‘Financial Literacy’ Rank||‘Credit’ Rank||‘Saving’ Rank|
|12||District of Columbia||63.41||2||2||34||35|
*No. 1 = Most Financially Savvy
For the full report, click here.