Why Massachusetts Is First in Financial Literacy

Banking, finance, and taxes

Published: September 27, 2017 10:21 am

Last Updated: January 12, 2020 7:45 am

Massachusetts is the most financially literate state, based on a study by WalletHub that evaluated all 50 states and the District of Columbia on their financial savviness.

Northeastern states occupy four of the top five spots: Massachusetts (1), New Hampshire (2), Connecticut (3) and New Jersey (5) are joined in the top echelon by Minnesota (4).

Also in the top 10 are northeastern states Rhode Island (9) and New York (10).

Mississippi ranks as the least financially savvy state on the list. Six of the bottom 10 states are in the South: Mississippi (51), Arkansas (50), Louisiana (45), Georgia (44), South Carolina (43) and Tennessee (42).

To determine the financially savviest states, WalletHub’s analysts compared the 50 states and the District of Columbia across 23 metrics that represent financial acumen. The data set ranges from median credit score to annual savings-account average to credit-card debt as a share of income.

Among key takeaways from the report were the following:

Massachusetts has the lowest share of adults spending more than they earn, 13.29%, which is 1.7 times lower than in Delaware, the state with the highest at 22.67%.
Massachusetts also had the highest median credit score, and Mississippi had the lowest.
New York has the lowest median debt per person (as a share of median earnings), 25.76%, more than three times lower than in Idaho, the state with the highest at 84.54%. The top five in this category are all from the northeast.
Colorado has the lowest foreclosure rate, 0.2%, which is 14 times lower than in New Jersey, the state with the highest at 2.8%.
Hawaii has the lowest annual housing and utilities expenditures per capita (as a share of the median home price), 1.51%, which is 2.8 times lower than in Michigan, the state with the highest at 4.22%.
North Dakota has the highest share of adults with rainy-day funds, 55.55%, which is 1.5 times higher than in West Virginia, the state with the lowest at 37.94%.
North Dakota also has the lowest delinquency rate on mortgages, auto loans, student loans and credit cards. New Mexico had the highest delinquency rate.

https://wallethub.com/edu/most-and-least-financially-savvy-states/20496/

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.