Financial literacy is key to building and growing your wealth. A recent survey by WalletHub reveals that some states are better at it than others. The money management website recently released its national financial literacy rankings.
Not surprisingly, the report shows that many people in the United States are lacking when it comes to financial knowledge. WalletHub finds that less than half of adults utilize a budget to keep track of spending, and 60% do not have a fund for emergencies. Furthermore, roughly one in five consumers spends more money than they earn. WalletHub notes that consumers collectively racked up more than $73 billion in new credit card debt since the beginning of 2012.
However, the survey also finds that there are still consumers who are financially knowledgeable and manage their money well.
In order to assess financial knowledge for each state, Wallethub used measurements such as the high school dropout rate, results of a Financial Industry Regulatory Authority (FINRA) literacy survey and the percentage of adults with a bachelor’s degree.
Wallethub assessed the behavioral category by using measurements such as the percentage of people who spend more than they earn, how many have an emergency fund, and how many pay only the minimum payment on their credit cards.