WalletHub, the specialized finance site, recently conducted a study on the states with the highest and lowest financial literacy, with Nebraska appearing as the highest ranked and Arkansas at the bottom of the list.
When the United States suffers bad economic times, it becomes clear that more people need to learn financial education, because after the crises, the obsession with debts and the dangers of quick access to finance for uninformed consumers increase.
“The importance of people being smart about their finances has become even more pronounced during the Covid-19 pandemic, which has affected the wallets of many Americans and caused major changes in the job market,” the report says. from WalletHub.
In 2021, Americans ended up with close to $1 trillion in total credit card debt, suggesting that better financial education is needed to try to reverse this debt trend. However, the problems are not as pronounced in all states, with some being more responsible than others.
To find the states with the best financial education, WalletHub compared all 50 states and the District of Columbia on three key dimensions: 1) WalletHub’s “Wallet Literacy Survey” score, 2) Financial planning and habits, and 3) Knowledge finance and education.
Those dimensions were then assessed using 17 relevant metrics, ranging from high school financial literacy score to the proportion of adults with funds for emergencies. Each metric was rated on a 100-point scale, with a score of 100 representing the highest level of financial literacy.
States with more and less financial knowledge, according to WalletHub:
Overall Rank: 1. Nebraska
Total score: 69.44
Overall Ranking: 2. Utah
Total score: 68.29
Overall Ranking: 3. Virginia
Total score: 67.83
Overall Rank: 4. Colorado
Total score: 67.55
Overall Ranking: 5. New Hampshire
Total score: 67.27
In counterpart:
Overall Ranking: 47. Alaska
Total score: 56.10
Overall Ranking: 48. Oklahoma
Overall Score: 56.02
Overall Ranking: 49. South Dakota
Total score: 55.29
Overall Rank: 50. Louisiana
Total score: 54.21
Overall Ranking: 51. Arkansas
Total score: 54.16
To consult the complete table, enter here.
“If policymakers are serious about preventing another financial crisis, they should take initiatives to make financial education compulsory in schools and universities,” said Dr. Tahereh Alavi Jojjat, President and Professor of Economics, Division of Economics. Business from DeSales University.
“This action requires that funds be dedicated to the school and the organization of a campaign on the importance of financial literacy. Financial education classes should focus on teaching students the basics of money management: budgeting, saving, debt, investing, charitable contributions, and more,” added Alavi Jojjat.
Keep reading:
Americans lose up to $1,819 on average because they don’t know about finances
· More than 60% of Americans do not talk about debt with their spouse, reveals a survey
Consumers are “very concerned” about their financial situation and will avoid spending in the next 6 months: PWC survey