Some people have a knack for financial planning and some don’t. It seems to be the same with states; which will likely leave financial advisors with a lot more hand-holding to do with potential clients.
People in these states are more likely to have revolving credit card debt, take loans from places other than banks like high-interest payday lenders, and spend more than they earn, according to WalletHub.
WalletHub, a financial decision making site, noted that overall there is a huge financial literacy problem in the U.S. The site assessed states based on two categories: knowledge and education; and planning and daily habits.
The site looked at the high school dropout rate, results of a Financial Industry Regulatory Authority literacy survey and the percentage of adults with a bachelor’s degree, among other measures, to rate states in the first category. The second category included looking at the percentage of people who spend more than they earn, how many have a rainy-day fund and how many pay only the minimum payment on their credit cards, among other measures.
Check out the 10 Dumbest States for Financial Literacy for 2014:
Overall Score: 42nd out of 51
Literacy: 46th out of 51
Behavior: 35th out of 51
Overall Score: 43
Overall Score: 44
Overall Score: 45
6. RHODE ISLAND
Overall Score: 46