Most & Least Financially Literate States

From Wallet Hub, Apr 7, 2021

After the Great Recession, it became clear that more people needed to learn financial literacy. The housing-market collapse and following financial crisis reminded Americans of our obsession with debt and the dangers of quick access to finances for under-informed consumers. The importance for people to be smart about their finances has become even more pronounced during the COVID-19 pandemic, amid high levels of unemployment and restrictions on businesses.

But how much have we learned from past mistakes, and what are we doing to help future generations avoid repeating them?

Not enough, it would seem. We ended 2020 with close to $1 trillion in total credit-card debt, even after record-breaking paydowns due to the COVID-19 stimulus. Our mountain of debt is unsurprising, considering that less than half of adults actually have a budget. It’s clear that better financial education is necessary to try to turn this trend around. The problems aren’t as pronounced in every state, though; some are more responsible than others.

In order to find the states with the best financial literacy, WalletHub analyzed financial-education programs and consumer habits — combined with the results of WalletHub’s proprietary WalletLiteracy Survey — in each of the 50 states and the District of Columbia. Their data set of 17 key metrics ranges from high-school financial literacy grade to share of adults with rainy-day funds….

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