Posted by: John S Kiernan

After the Great Recession, it became clear that more people needed to learn financial literacy. The housing-market collapse and following financial crisis reminded Americans of our obsession with debt and the dangers of quick access to finances for under-informed consumers.

But how much have we learned since, and what are we doing to help future generations avoid repeating our mistakes?

Not enough, it would seem. We ended 2017 with $92.2 billion in new credit-card debt, the highest increase since 2007. That’s unsurprising, considering that only two in five adults actually have a budget. For the first time ever, total American credit card debt has passed $1 trillion, so it’s clear that better financial education is necessary to try to turn this trend around. But the problems aren’t as pronounced in every state; some are more responsible than others.

In order to find the states with the best financial literacy, WalletHub analyzed financial-education programs and consumer habits — combined with the results of WalletHub’s proprietary WalletLiteracy Survey — in each of the 50 states and the District of Columbia. Our data set of 15 key metrics ranges from high-school financial literacy grade to share of adults with rainy-day funds. Read on for the results, insight from a panel of experts and a complete description of our methodology.

1. Main Findings
2. Detailed Findings
3. Correlation Analysis
4. Ask the Experts: Fostering U.S. Financial Literacy
5. Methodology

 

Main Findings

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Overall Rank	State	Total Score	‘WalletLiteracy’ Rank	‘Financial Planning & Habits’ Rank	‘Financial Knowledge & Education’ Rank
1	New Hampshire	70.28	1	4	4
2	Virginia	68.15	9	2	29
3	Minnesota	67.93	5	8	8
4	Maryland	67.83	19	3	15
4	Utah	67.83	3	1	47
6	New Jersey	67.47	21	5	9
7	Maine	67.25	12	17	1
8	Colorado	67.01	11	11	7
9	North Dakota	65.69	4	9	37
10	Illinois	65.10	32	13	11
11	Michigan	65.00	10	14	20
12	New York	64.71	17	18	12
13	North Carolina	63.78	37	15	18
14	Iowa	63.51	22	16	30
15	Washington	63.30	16	21	22
16	Arizona	63.14	27	23	16
17	Ohio	63.13	23	19	27
18	Florida	62.71	30	24	14
19	Texas	62.69	35	10	39
20	Kansas	62.58	36	31	6
21	Nebraska	61.99	20	32	21
22	Montana	61.92	24	38	3
23	Alabama	61.85	31	12	45
24	Wisconsin	61.76	13	42	2
25	Vermont	61.75	26	27	31
26	Georgia	61.71	34	22	33
27	Massachusetts	61.63	8	34	19
28	Connecticut	61.57	29	36	5
29	Oregon	61.40	33	28	28
30	South Carolina	61.39	41	20	36
31	Idaho	61.34	7	25	42
32	Indiana	60.54	42	33	17
33	California	60.35	2	46	25
34	Tennessee	60.02	40	6	51
35	Pennsylvania	59.56	25	44	10
36	Wyoming	59.55	6	45	23
37	Missouri	59.47	48	7	50
38	West Virginia	59.28	50	29	13
39	Nevada	58.57	14	35	44
40	Arkansas	58.49	43	26	46
41	Hawaii	57.92	18	47	35
42	Rhode Island	57.47	15	41	41
43	Delaware	57.31	46	39	32
44	Kentucky	57.29	44	30	48
45	South Dakota	56.73	28	48	38
46	New Mexico	56.64	45	43	24
47	District of Columbia	56.57	38	49	34
48	Oklahoma	55.82	49	37	40
49	Mississippi	55.49	51	40	26
50	Alaska	54.66	39	50	43
51	Louisiana	51.72	47	51	49

   

Detailed Findings Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/3337/financial-literacy-bar1.html" width="450" height="450" frameBorder="0" scrolling="no"></iframe> <div style="width:450px;font-size:12px;color:#888;">Source: <a href="https://ift.tt/2q41RI1>

 

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Correlation Analysis Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/3337/financial-literacy-correl1.html" width="700" height="450" frameBorder="0" scrolling="no"></iframe> <div style="width:700px;font-size:12px;color:#888;">Source: <a href="https://ift.tt/2q41RI1>

 

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Ask the Experts: Fostering Financial Literacy in the U.S.

Financial literacy is a growing area of focus for academics, from public-school policymakers to university researchers. For insight into the current state of financial literacy as well as what the federal government, states and parents can do to help society improve, we turned to a select group of educators. Their bios and comments can be found below.

1. What should policymakers do to improve financial literacy?
2. How can parents equip their kids with financial know-how?
3. To what degree should financial literacy be a part of the K-12 curriculum? What are the most effective ways to teach financial concepts in schools?
4. What's the right balance between expecting consumers to educate themselves versus regulating financial service providers?

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• Forrest Baumhover Certified Financial Planner and Owner of Westchase Financial Planning
• Daniel B. Moisand Principal and Financial Advisor at Moisand Fitzgerald Tamayo
• Julio Rivas-Aguilar Assistant Professor in the College of Business at Lipscomb University
• Steven D. Podnos Principal at Wealth Care
• Robert Klosterman Founder & Advisor at White Oaks Wealth Advisors
• Victor Ricciardi Assistant Professor of Financial Management at Goucher College
• Luiz Pacheco Financial Planner and Portfolio Manager at Inva Capital Wealth Management
• Holly Donaldson Certified Financial Planner and Founder of Holly Donaldson Financial Planning
• Jill M. Bisco Assistant Professor of Finance at The University of Akron

Forrest Baumhover Certified Financial Planner and Owner of Westchase Financial Planning

What should policymakers do to improve financial literacy?

To my knowledge, there has not been a serious conversation about financial literacy in schools in quite some time. There are a lot of non-profit organizations who are dedicated to helping improve teen and young adult financial literacy. Without even talking about raising government funds, policymakers can help tremendously by simply:

• Helping schools and districts to gain access to such resources;
• Public discussion of financial literacy, its impact, and what parents can do to address it;
• Advocating efforts by more non-profit organizations to support financial literacy goals.

How can parents equip their kids with financial know-how?

The first step is that parents must be financially literate themselves. However, money is considered a taboo topic at the dinner table. So just talking about money will help spur the questions. And those questions will start to sow the seeds of financial education, which will help today’s kids thrive in a world that is financially different from the one that previous generations grew up in.

To what degree should financial literacy be a part of the K-12 curriculum? What are the most effective ways to teach financial concepts in schools?

As a parent, I would love seeing basic concepts being taught as a high school elective. When I was in school, checkbook-balancing was taught in home economics, both of which are now obsolete concepts. However, having a “life preparation” elective course that helps students navigate student loans, credit cards, banking concepts -- I would love to see that.

What’s the right balance between expecting consumers to educate themselves versus regulating financial service providers?

It’s easy to constantly say, “Buyer beware.” In fact, that seems to be the federal government’s stance in light of the recent 5th Circuit Court decision that:

“Only in DOL's semantically created world do salespeople and insurance brokers have 'authority' or 'responsibility' to 'render investment advice.'”

In other words, the government is telling the general public: “Buyer beware, because we have a 75-year-old law that says brokers and salesmen do not have to place your best interests ahead of their own.” Until the federal government starts telling everyone in the financial services industry that they need to protect consumers, then the focus needs to be on education.

Daniel B. Moisand Principal and Financial Advisor at Moisand Fitzgerald Tamayo

What should policymakers do to improve financial literacy?

Very basic personal finance issues should be taught in schools. High school graduates should know the basics of how bank accounts, credit cards, car loans, and mortgages work, plus things like what taxes they will pay when they get a job, what a credit score is and how to keep it a good one, consequences for bad checks, and too much debt or late payments.

How can parents equip their kids with financial know-how?

First, they need to be literate themselves. It is sad how few adults know about the items I listed in the first question. Then, as they make decisions and undertake transactions, they can share with their kids what they are doing and why. My kids know the difference between good credit card use and bad credit card use because I showed them how it all works.

To what degree should financial literacy be a part of the K-12 curriculum? What are the most effective ways to teach financial concepts in schools?

It is barely part of the curriculum now. Usually, all I see is a personal finance elective in high school and a stock market challenge, which really only teaches algebra and how to speculate. The most effective way is real world examples -- how to buy a car or a gaming computer. Contrast how much one would pay if they had saved a little, used a short-term loan at a rate consistent with a good credit rating, with what would be paid by a peer who put nothing down for a longer-term loan and paid higher interest because they had a bad credit score.

What’s the right balance between expecting consumers to educate themselves versus regulating financial service providers?

Balance sounds good but isn’t what is needed. Consumers should not need to be educated to be protected. Fiduciary duty should apply to all “advisors” all the time and disclosure alone should not relieve the fiduciary of that standard of care. Telling someone you might act against their interests doesn’t make it OK to do so. If an “adviser” can’t serve exclusively in the client’s best interests, they shouldn’t be allowed to call themselves an adviser and should call themselves something that communicates that they are working for the financial service provider’s interests.

Julio Rivas-Aguilar Assistant Professor in the College of Business at Lipscomb University

What should policymakers do to improve financial literacy?

I'm of the idea that a change in culture has more impact than a change in rules. Having said that, I do think that policymakers can help by including financial education as part of the K-12 curriculum. When I teach, I always emphasize that time is the most important variable in investing. The longer time you have to invest, the larger your potential future returns. Therefore, the earlier you start learning finance, the better. I was watching an interview the other day with one of the main proponents of behavioral finance. This Nobel prize winner mentioned that we need to protect people when they're having losses so that they won't make reckless decisions. I think the best way to prepare anyone is through education. However, policymakers can do up to a certain point. The rest is up to the people to understand, and in order to help K-12 students understand finance, you need to have teachers and parents completely involved in the process.

How can parents equip their kids with financial know-how?

First of all, parents need to have some sort of financial know-how. If parents don't understand Finance, then they cannot teach it. I would first suggest the parents to get up to date with their money. There are several methods available in the market and, when followed, they will work. However, parents need to be convinced that they're doing the right thing. Then, once parents understand and are convinced on their financial principles, they can teach them to their kids. I strongly believe that teaching through games involving personal experience could be the best alternative.

We live in a culture of instant gratification, and we indirectly teach our kids that they can have things fast. By involving alternatives (a trip to Disney for three days now as opposed to a trip to Disney for a week in three months, for example), kids can make decisions and see that the alternative of waiting could be better. It is also important to make it fun (it is a game, right?) but to stick to the decisions and not bend the rules. At the end we want kids to learn and make their best decisions as adults. This is just an example, but I'm sure there are different pedagogical methods that are age-appropriate and can give great results.

To what degree should financial literacy be a part of the K-12 curriculum? What are the most effective ways to teach financial concepts in schools?

I always say that formal education gives us knowledge and, probably more important, life skills. Financial education should be part of the curriculum. Again, I'd be in favor of making games or practical activities. We want students to be motivated, but we also want them to learn. It is relatively easy to deal with winnings, yet it is complicated to deal with losses. Going back to behavioral finance, research has shown that we dislike losing two to three times more than like winning. I think the challenge is teach on how to deal with situations that are not favorable. At the end, and after many years, everyone should have good returns on their investments. Again, everything needs to be age-appropriate. This would be of great service for students. I've seen college-age people really struggling with how to handle their money. On the other hand, I've also seen get their faces illuminated when they understand saving for the long run.

What’s the right balance between expecting consumers to educate themselves versus regulating financial service providers?

I support self-education as the best way to approach financial education. People in general, and kids in particular, need to understand that making the best financial decisions is in their best interest. The individual benefits, and societal benefits, are substantial. If you are forced to do it, you're not really convinced and you will not be able to understand the real issue. We live in a country where education is widespread, and new ideas can be spread out. With respect to regulation, probably "carrots" are better than "sticks." If there is a way in which people can be motivated, probably in the tax area, to get educated and educate their kids, we could have a booster in financial literacy. However, at the end, everything goes back to the individual and their decision-making. That's why it is important to educate early, so that everyone can make the best decisions for themselves and their families.

Steven D. Podnos Principal at Wealth Care

What should policymakers do to improve financial literacy?

In the aim of consumer education, it would be great to see some promulgation of information on the power of long-term savings, the dangers of credit card debt, and the difference between fiduciary and non-fiduciary advice. This could be done with public service announcements on TV, magazines, and posters.

How can parents equip their kids with financial know-how?

I tried with limited success (the cobbler’s kids go barefoot, right?). I'd encourage them taking personal finance courses in high school, and to read the various books on teens and money. Also, parents should teach their kids what they know and have learned themselves, just as they do with other topics.

To what degree should financial literacy be a part of the K-12 curriculum? What are the most effective ways to teach financial concepts in schools?

I think such a course should be mandatory. Ultimately, it is more important than many of the subjects now taught routinely. I remember my oldest daughter (now a CFP) being told not to take a course as such in high school, as "it won't look good on your transcript."

What’s the right balance between expecting consumers to educate themselves versus regulating financial service providers?

I think we need both. A fiduciary standard would be ideal for providers, but at least consumers should be educated to look for fiduciary advisors.

Robert Klosterman Founder & Advisor at White Oaks Wealth Advisors

What should policymakers do to improve financial literacy?

Schools have an essential responsibility and role in preparing young people for adult life. The local school boards have the primary role in accomplishing this education. The schools would be the most effective teaching money skills including:

• What is money? Exchange of value from one person/entity to another.
• The impact of compound interest on long-term accumulation of financial security.
• Various types of financial tools such as bank accounts, investment in stocks bonds mutual funds and what the elemental differences between them are and how to use them.
• The difference between buying things now via credit card and cash, and the higher ultimate cost when balances are not paid off each month.
• What is bankruptcy and tools to avoid it.
• Why good credit makes life easier.

How can parents equip their kids with financial know-how?

By having money conversations, starting with savings versus debt and the joy of delayed gratification. Helping them open bank and investment accounts and having periodic conversations about how things are going.

To what degree should financial literacy be a part of the K-12 curriculum? What are the most effective ways to teach financial concepts in schools?

Part of this I laid out in the first question. Financial literacy is an essential life skill in today's world. It requires curriculums in the schools. Families can and should accentuate these skills in preparing their children for adult life.

What’s the right balance between expecting consumers to educate themselves versus regulating financial service providers?

A great question, but financial education is really no different than Math, English or other topics. The students, schools and the families each have 100 percent responsibility to be prepared for adult life.

Victor Ricciardi Assistant Professor of Financial Management at Goucher College

What should policymakers do to improve financial literacy?

There is a lack of undergraduate finance programs at historically black colleges and universities (HBCUs) within the United States. A vast majority of these schools are located in the South. I taught at Kentucky State University for three wonderful years and developed my own finance specialization. The school is classified as a HBCU and I collected interesting data for gaining approval for the program. In September 2005, I conducted an observational study of internet homepages and found only 46 percent (41 of 89) of the nation's 4-year HBCUs offer the undergraduate finance major.

Furthermore, HBCUs account for nearly 1 in 4 undergraduate degrees awarded to African Americans in the United States on an annual basis. I would assume this finding and information is still accurate even though it was over 10 years ago. My major concern is how we can expect to increase financial literacy among the general African American population if a major resource of educating future business leaders does not have undergraduate finance program at HBCUs? This finding is one of the reasons for the under-representation of African Americans employment within the financial services industry, especially as financial planners and advisors.

How can parents equip their kids with financial know-how?

Parents should teach their children positive money habits throughout their childhood, especially about savings, spending, investing, and budgeting. In particular, many times, boys and girls are treated differently about money within the family household. Girls tend to suffer more than boys from math anxiety and this worsens the financial literacy of girls even more, since personal finance is based on math-related subject matter. The lesson is all children should be taught positive money behaviors in early childhood throughout the teenage years.

To what degree should financial literacy be a part of the K-12 curriculum?

In my assessment, a personal finance course should be required for all students within the United States. This also requires additional training for teachers across various disciplines to teach a personal finance course. Most educators at the K-12 level do not have a background or training in finance-related subject matter.

What are the most effective ways to teach financial concepts in schools?

My suggestion is to select a majority of the personal finance topics based on a “positive and hope” learning approach. The behavioral finance and financial therapy research reveals that most individuals take an optimistic perspective of life. Thus, teach about the fun and positive aspects of time value of money, stocks, bonds, housing, real estate, mutual funds, and retirement planning. Then, during the course, also have the tough and important discussions about borrowing and spending issues including wants versus needs, spending, budgets, credit scores, credit cards, student loan debt, and bankruptcy.

Personal finance and money games are significant tools in an overall education approach, since the research shows students have improved outcomes based on experience and positive learning activities. This method allows for the teacher and student to have better communication and interaction throughout the entire educational course. The use of games can be applied to strengthen subject matter covered in the classroom, and the students find this a fun financial learning environment.

What’s the right balance between expecting consumers to educate themselves versus regulating financial service providers?

An all-the-above approach is needed and required. There needs to be greater investment by the private sector, including the financial services industry, non-profits, and all levels of government. In addition, individuals are required and responsible for developing basic personal finance knowledge and skills. This is a lifelong journey in order to have greater financial literacy for all Americans. Society needs the right balance of financial regulation that creates trust and confidence among consumers, but avoids overregulation that prevents employment and investment growth within the financial services industry.

Luiz Pacheco Financial Planner and Portfolio Manager at Inva Capital Wealth Management

How can parents equip their kids with financial know-how?

Parents can teach kids by giving them an allowance and helping them understand how to use it (i.e., “If you buy this toy today, you won’t have money to buy snacks next week”). This allowance should increase as the child ages. Kids can also be part of the conversation of important economic decision, like buying a car or making a donation.

To what degree should financial literacy be a part of the K-12 curriculum? What are the most effective ways to teach financial concepts in schools?

It is very important that children are taught financial concepts from an early age. For example, most people start working and all of a sudden, they have to do their taxes. Also, concepts of compound interest, savings and time value of money would be beneficial.

Holly Donaldson Certified Financial Planner and Founder of Holly Donaldson Financial Planning

What should policymakers do to improve financial literacy?

Acknowledge that, as of right now, many financial providers are not required to put their customers' best interests ahead of their own at all times. Recognize financial planning as a distinct profession. Implement the Department of Labor fiduciary rule. Provide funding for economic education and financial literacy curriculum in more schools. I agree with NAPFA's public policy goals, seen here.

How can parents equip their kids with financial know-how?

Be open with kids, at an age-appropriate level, about how to use money in healthy ways. Help them see money as one more tool to lead a good life (but not the only tool). When kids begin to receive gifts or earn money, some families create a three-part piggy bank-like system: 1/3 for saving, 1/3 for spending, and 1/3 for sharing with others. Older kids can be introduced to investing by buying stock certificates or by opening small investment accounts. Be honest with kids about college and what they can expect -- will you cover all expenses at any school, or only the tuition, room and board at an in-state university, or somewhere in between? Continue to develop their financial independence by allowing older kids and young adults to figure out how to earn their own way for what they want.

For example, there are two or three parts to owning a car -- buying it, sometimes financing it, and maintaining it. Parents can begin by agreeing to help with two out of three, while communicating that they expect to reduce to one and then zero over a period of time. Finally, be aware if you become emotional about financial decisions or activities. For example, kids notice if you are cranky every time you are paying the bills. Sometimes it's helpful to own up to the fact that dealing with money is a complex relationship that evolves throughout our lifetimes (again, at an age-appropriate level). Money activities and conversations for kids at different ages can be found at the Consumer Financial Protection Bureau website.

To what degree should financial literacy be a part of the K-12 curriculum? What are the most effective ways to teach financial concepts in schools?

As a financial planner, I think financial literacy should be given equal importance to math, science, and communication. Junior Achievement has curriculum already developed for each grade. Kindergarteners can learn about physical money; middle schoolers can learn how to read a pay stub, as well as keep and balance a checkbook; while high schoolers can begin to understand mortgages and investments.

I believe simulations are the most effective ways to teach these concepts. For example, in Pinellas County, Florida, there is the Gus Stavros Enterprise Institute, where middle schoolers run a mock community of businesses and banks. Giving students simulated bank accounts, investment accounts, and/or mortgages can be both fun and effective.

What’s the right balance between expecting consumers to educate themselves versus regulating financial service providers?

As with any profession, there will always be a gap in knowledge between the provider and the client that can give the provider the opportunity to profit from unethical advice. Financial service providers should be regulated like other professions such as law, medicine, dentistry and accounting, where the provider is required to put the best interests of the patient/client first at all times.

At the same time, consumers of these professions are expected to know their basics: brush their teeth, get annual checkups, file their tax returns, and have wills. Similarly, financial consumers should be expected to learn how to, for example, balance a checkbook, participate in a 401K, be cautious about who they share their data with, complete a mortgage application, screen financial professionals and use online financial tools.

Jill M. Bisco Assistant Professor of Finance at The University of Akron

What should policymakers do to improve financial literacy?

States regulate graduation requirements for high schools and dictate what courses must be taught. Implementing a requirement to include a course on financial literacy is something that policymakers should consider. If they can require art and/or gym classes, they can certainly require a more focused financial literacy course, which focuses on topics that everyone will need to understand: balancing a checkbook, credit card management, retirement planning, insurance purchasing decisions, etc. I’m not minimizing the value of the art or gym class experience. I am simply saying that financial literacy is a vital part of being a member of society and understanding one’s personal financial situation and the options available, is critical to a financially, stable life.

How can parents equip their kids with financial know-how?

In many households in the U.S., issues of money and finance are not discussed, as these are perceived as “adult topics.” Although the specifics regarding the family finances may be discussed among adults, the failure to talk about money and finances to the children at all is a mistake. Parents should start talking about financial decisions the first time they or someone else gives their child money. There are decisions and opportunity costs associated with the $5 grandma sent them for their birthday. With each new financial milestone (i.e., allowance, first job), parents have a continued opportunity to talk to their children about financial decisions and the value of saving.

When my children reached middle school, I put half of their allowance into a savings account and half into a checking account. I taught them to balance the checking account and how to manage their money. We compared the growth of the savings account in comparison to the ease of spending out of the checking account. Although these may seem like easy lessons, these lessons will carry through the rest of their life.

To what degree should financial literacy be a part of the K-12 curriculum? What are the most effective ways to teach financial concepts in schools?

Omitting financial literacy as part of the curriculum in the K-12 system has led to young adults that don’t understand the time value of money, credit card implications, the value of insurance, retirement planning, or simply how to balance a checkbook. Although I believe that parents should be involved in this education, I think that the middle and high schools also have to address the problem. A person’s ability to earn an income is the most valuable asset (s)he has, and yet we do not give these young adults the tools to manage this income.

Colleges and universities try to fill some of the gap by offering personal finance courses, but unless these courses are required of all college students, even this subset may be underserved. Therefore, to address the issue, we must look at re-establishing financial literacy as a key requirement in middle and/or high school. To assist schools in this endeavor, they should reach out to the financial services professionals in the area to assist in presentations, coursework, etc. The industry understands the problem and should be willing to help.

What’s the right balance between expecting consumers to educate themselves versus regulating financial service providers?

I think that if the above issues are addressed, then this question would not be as hard to answer. Consumers should come to any financial decision with a base knowledge of the issue. We should know that stocks can be risky and investing in them could result in a loss of investment. We should know that not insuring a home means that if it burns down, there will be no payment for the house or the items lost in it. We should understand that credit cards charge interest and that failure to pay more than minimum payment could mean that paying off even a small balance could take years. This base knowledge should be taught as indicated above. As for the financial service providers, the regulation in this area should be focused on the products sold and the methods used to sell/advertise the products. Financial planning products can be very complex and change constantly and therefore, these should be the focus of the regulators.

Methodology

In order to distinguish the most financially literate states from the least, WalletHub compared the 50 states and the District of Columbia across three key dimensions: 1) WalletHub’s “WalletLiteracy Survey” Score, 2) Financial Planning & Habits and 3) Financial Knowledge & Education.

We evaluated those dimensions using 15 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the highest level of financial literacy.

We then determined each state’s weighted average across all metrics to calculate its overall score and combined those results with the responses to our WalletLiteracy Survey to rank-order our sample.

Financial Planning & Habits – Total Points: 25

• Median Credit Score: Full Weight (~2.08 Points)
• Share of Adults Who Spend More than They Earn: Double Weight (~4.17 Points)
• Share of Adults with Rainy-Day Funds: Double Weight (~4.17 Points)
• Share of Adults Who Save for Their Children’s College Education: Full Weight (~2.08 Points)
• Share of People Who Try to Achieve Long Term Financial Goals: Full Weight (~2.08 Points)
• Share of Adults whose Household has a Budget: Full Weight (~2.08 Points)
• Share of Unbanked Households: Full Weight (~2.08 Points)
• Share of Adults Borrowing from Nonbank Lenders: Full Weight (~2.08 Points)
• Share of Adults Paying Only Minimum on Credit Card(s): Full Weight (~2.08 Points)
• Share of Adults Who Compare Credit Cards Before Applying: Full Weight (~2.08 Points)

Financial Knowledge & Education – Total Points: 25

• High-School Financial Literacy Grade: Double Weight (~10.00 Points)
• Public High-School Graduation Rate: Full Weight (~5.00 Points)
• Share of Adults with at Least a Bachelor’s Degree: Full Weight (~5.00 Points)

Wallethub’s ‘WalletLiteracy Survey’ Score – Total Points: 50

The results displayed below were calculated based on the grades earned by respondents to WalletHub’s WalletLiteracy Survey. We collected a total of 17,643 responses nationally. The sample employed was based on WalletHub’s community of members.

The following scale determined each state’s WalletLiteracy grade:

Average Grade	Corresponding Score
A+	100.0
A	91.7
A-	83.3
B+	75.0
B	66.7
B-	58.3
C+	50.0
C	41.7
C-	33.3
D+	25.0
D	16.7
D-	8.3
F	0

 

Sources: Data used create this ranking were collected from the U.S. Census Bureau, National Center for Education Statistics, TransUnion, Federal Deposit Insurance Corporation, FINRA Investor Education Foundation, Champlain College Incorporated and WalletHub research.

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