The Least Financially Literate States in America

What's Hot

23 Upgrades Under $50 to Make Your House Look AwesomeAround The House

Trump Worth $10 Billion Less Than If He’d Simply Invested in Index FundsBusiness

Do This or Your iPhone Bill May SkyrocketSave

11 Places in the World Where You Can Afford to Retire in StyleMore

19 Moves That Will Help You Retire Early and in StyleFamily

What You Need to Know for 2017 Obamacare EnrollmentFamily

8 Things Rich People Buy That Make Them Look DumbAround The House

50 Ways to Make a Fast $50 (or Lots More)Grow

32 of the Highest-Paid American SpeakersMake

The 35 Two-Year Colleges That Produce the Highest EarnersCollege

5 DIY Ways to Make Your Car Smell GreatCars

Amazon Prime No Longer Pledges Free 2-Day Shipping on All ItemsMore

More Caffeine Means Less Dementia for WomenFamily

7 Household Hacks That Save You CashAround The House

5 Reasons a Roth IRA Should Be Part of Your Retirement PlanGrow

30 Awesome Things to Do in RetirementCollege

Beware These 10 Retail Sales Tricks That Get You to Spend MoreMore

9 Tips to Ensure You’ll Have Enough to RetireFamily

Financial literacy is key to being able to take control of your financial future. But some states are woefully behind in acquiring this crucial skill.

This post comes from Christine DiGangi at partner site

There are some things everyone has to learn in order to be successful. In school, we learn how to read, write and use computers at an early age because most of us have to do those things on a daily basis. Students practice, do homework and take tests so teachers and parents can make sure they understand these critical skills.

You know what else people use every day? Money. Everyone has personal finances, but not even half of the states require financial education courses or assessments in high school.

Some states aren’t very good at making sure people understand basic financial concepts, and it shows in their residents’ habits. WalletHub compiled a report ranking states by financial literacy, using education and banking data from several sources, including the Center for Financial Literacy at Champlain College, U.S. Census Bureau, National Center for Education Statistics and the U.S. Bureau of Economic Analysis.

States with poor financial literacy scores often had some of the lowest average credit scores, when comparing the WalletHub report with credit score data from Experian-Oliver Wyman Market Intelligence reports. That’s not too surprising, since it’s easy to make mistakes with your credit if you don’t understand how it works.

Financial weak spots

Mississippi came out looking particularly bad. It’s by no means the only state that needs to improve financial education, but it’s the only one in the top three of all of these metrics:

  • Highest high school dropout rates.
  • Most unbanked households per capita.
  • Smallest percentage of people with an emergency fund.
  • Most people with the least sustainable spending habits.

When weighing the education systems and residents’ money habits, these 15 states came out on the bottom in WalletHub’s study:

  1. North Carolina
  2. Delaware

  3. Texas

  4. Oklahoma

  5. Alaska

  6. Michigan

  7. Arizona

  8. Kentucky

  9. Alabama

  10. Rhode Island

  11. New Mexico

  12. Louisiana

  13. Nevada

  14. Arkansas

  15. Mississippi

Ten of those states were also among the 15 states with the lowest average credit scores in the fourth quarter of 2013 (Mississippi was on the bottom of that list, too).

The good news is it’s never too late to get money smart. By paying close attention to your bank accounts, spending habits and credit reports, you’ll learn what helps and hurts your financial standing.

If you want to get a better handle on where your credit currently stands, you can see two of your credit scores for free on A poor credit score and bad savings habits aren’t beyond repair, but you can’t hope to improve without first understanding where you stand.

More on

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: 9 Tips to Ensure You’ll Have Enough to Retire

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,655 more deals!