Who’s up for some early morning stats?! :)
A report just came out by WalletHub on the most financially literate – and least financially literate – states, and I was proud to see two of those I’ve called home over recent years land in the top 6.
How about yours?
The Most Financially Literate States:
- Virginia <— aww yeahh!
- New Hampshire
- New Jersey
- Maryland <– boom
- North Dakota
- New York
The Least Financially Literate States:
- Rhode Island
- South Dakota
- New Mexico
If yours landed in the bottom pile there, time to hook up your state and forward this blog to everyone you know!!! ;) It’s counting on you!!! Haha…
Here’s what went into the rankings:
“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 17 relevant metrics, which are listed below with their corresponding weights…”
And those 17 metrics are:
- Median credit score
- Share of adults who spend more than they earn
- Share of adults with rainy-day funds
- Share of adults who save for their children’s college education
- Share of adults who try to achieve long term financial goals
- Share of adults whose household has a budget
- Share of unbanked households
- Share of adults borrowing from nonbank lenders
- Share of adults paying only the minimum on credit card(s)
- Share of adults who compare credit cards before applying
- High-school financial literacy grade
- Public high-school graduation rate
- Share of students required to take at least one personal finance course
- Share of adults who attended financial-education classes or counselling sessions in past 12 months
- Share of adults using online financial services
- Share of adults with at least a bachelor’s degree
And then lastly – the most fun metric of all:
- The “WalletLiteracy Survey“score!
Which of course I then had to take just to see how well I contributed to my own state or not ;) And I’ll be honest – there were some tricky ones up in there!!
But luckily there were also some soft balls such as “what’s your age?” and “On a scale from 1 to 7, how would you assess your overall financial knowledge?” so I confidently gave myself a 6 out of 7 and was pleasantly pleased to be on target ;)
Here were my results:
There were a lot of questions (30), but I swear you’ll have a good time answering them ;)
Here were a few of them to give you an idea…
- Which two factors are most important when calculating your credit score?
- Which of the following types of deposit accounts generally pays the highest interest rate?
- If you carry over a balance on your credit card from one billing period to the next, when will interest charges begin on a new purchase?
- Rank the following sources of funding for higher education from best to worst… (<– this was one of the 4 i got wrong…)
- Which of the following people likely needs life insurance coverage most?
- Which of the following debt payoff strategies will save you the most money?
- If you put $100 in a savings account with an interest rate of 5% per year and left the money in the account for five years, how much would you have in the account at the end of the 5th year?
Wanna play along and see if you can beat me?
Take the survey here –> The WalletLiteracy Survey
And then let us know if you’re an asset or liability to your state! Haha…
No emails or anything are required to get your score, it’s just some good ol’ nerdy fun to start out your week on the right foot….
Happy Financial Literacy Month!
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!