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:
10. MICHIGAN
Overall Score: 42nd out of 51
Literacy: 46th out of 51
Behavior: 35th out of 51
9. ARIZONA
Overall Score: 43
Literacy: 38
Behavior: 41
8. KENTUCKY
Overall Score: 44
Literacy: 44
Behavior: 38
7. ALABAMA
Overall Score: 45
Literacy: 43
Behavior: 39
6. RHODE ISLAND
Overall Score: 46
Literacy: 48
Behavior: 40
5. NEW MEXICO
Overall Score: 47
Literacy: 49
Behavior: 37
4. LOUSIANA
Overall Score: 48
Literacy: 40
Behavior: 49
3. NEVADA
Overall Score: 49
Literacy: 41
Behavior: 50
2. ARKANSAS
Overall Score: 50
Literacy: 50
Behavior: 48
1. MISSISSIPPI
Overall Score: 51
Literacy: 51
Behavior: 51
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