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/

Take Charge of Your Retirement In Just A Few Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.

Here’s how it works:

Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!