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The 5 Most And Least Financially Savvy States – Making of a Millionaire – Medium

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Does Your State Make The List?

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Many of us dedicate a shockingly small amount of our energy and attention to our personal finances. We don’t need to look hard to see some pretty damming stats as it related to personal finance in the United States:

The list goes on and on. However, some states are better than others when it comes to “financially savviness”, according to a new study done by Wallet Hub. They ranked every state from most to least financially savvy

What is Financial Savvy?

The report ranks each state (and the District of Columbia) by the following four financial metrics (the maximum points each state can achieve is in brackets)

  1. Debt and Spending (out of 40 points)
  2. Financial Literacy (out of 20 points)
  3. Credit (out of 20 points)
  4. Saving (out of 20 points)

So a perfect score would be 100 points and the lowest score possible would be zero, which thankfully no state scored (yet).

The 5 Most Financially Savvy States

1. Massachusetts

“baseball players playing inside the field during daytime” by Forest Simon on Unsplash

The most financially Savvy state in America is Massachusetts, ranking in the top 10 of 3 of the 4 metrics. The only area that the good folks of Massachusetts need to work on is their savings.

Debt and Spending Rank: 1

Financial Literacy Rank: 5

Credit Rank: 7

Saving Rank: 17

2. New Hampshire

“pink petaled flowers under trees at daytime” by Annie Spratt on Unsplash

We only need to move one state to the north to find our #2 most financially savvy state in New Hampshire. Whereas Massachusetts needed to work on their savings that is certainly not a problem for New Hampshire which claimed the number 1 ranking for savings. Not only are the best savers, but they are also overall the most balanced state ranking in the top 10 of all 4 metrics. If Debt and Spending weren’t weighted so heavily, New Hampshire would take the number one overall ranking.

Debt and Spending Rank: 1

Financial Literacy Rank: 5

Credit Rank: 7

Saving Rank: 17

3. North Dakota

“photo of forest near snow covered mountains” by Isabella Jusková on Unsplash

Out of the Northeast and moving on to the Midwest, North Dakota ranks number three overall thanks primarily to their excellent credit. North Dakota ranked number two in the credit rankings.

Debt and Spending Rank: 11

Financial Literacy Rank: 21

Credit Rank: 2

Saving Rank: 6

4. Minnesota

“brown bridge during daytime time lapse photography” by Aaron Huber on Unsplash

Minnesota comes in at number four overall with a pretty balanced score, ranking in the top 15 in all four metrics.

Debt and Spending Rank: 5

Financial Literacy Rank: 14

Credit Rank: 4

Saving Rank: 12

5. Connecticut

“shallow focus photography of seashore” by Derek Story on Unsplash

Must be that fresh northeastern air that is making everyone in the region of the country so good with money.

Debt and Spending Rank: 7

Financial Literacy Rank: 15

Credit Rank: 19

Saving Rank: 10

The 5 Least Financially Savvy States

5. Oklahoma

“architectural photography of football field” by Alex Batchelor on Unsplash

The fifth least financially savvy state in America is Oklahoma which was consistently in the bottom ten of all four metrics

Debt and Spending Rank: 44

Financial Literacy Rank: 43

Credit Rank: 45

Saving Rank: 49

4. New Mexico

“cactus plant beside orange leafed plant” by Cody Doherty on Unsplash

New Mexico is the fourth least financially savvy state, placing in the bottom ten in all four metrics and the bottom five in both credit and savings.

Debt and Spending Rank: 44

Financial Literacy Rank: 43

Credit Rank: 45

Saving Rank: 48

3. West Virginia

Coming in at number three is West Virginia which ranked in the bottom 3 in both debt and financial literacy.

Debt and Spending Rank: 48

Financial Literacy Rank: 48

Credit Rank: 38

Saving Rank: 49

2. Arkansas

Arkansas is the second least financially savvy state, ranking dead last in credit.

Debt and Spending Rank: 48

Financial Literacy Rank: 48

Credit Rank: 38

Saving Rank: 49

1. Mississippi

“white and brown La Suisse ship” by Samuel Zeller on Unsplash

Coming in as the least financially savvy state in America is Mississippi which ranked last in three of the four metrics. It might be surprising that the state with the lowest cost of living in the country, would rank last in both spending and saving. But it’s important to remember this is not a measure of total debt but a measure of debt, spending, and saving relative to your income. Mississippi has the fourth highest unemployment rate in the country. Proof once again that cost of living isn’t as important as wages and job prospects when it comes to personal finances.

Debt and Spending Rank: 48

Financial Literacy Rank: 48

Credit Rank: 38

Saving Rank: 49

To check out the ranking of all 50 states (plus D.C) and read up on the detail of the methodology you can read the full report from Wallet Hub.

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