Most and Least Financially Literate States, Ranked
Being responsible with money is more crucial than ever in times of turbulent economic change. But what exactly does it mean to be financially literate? Looking at factors like savings account balances, credit scores, and financial education can give some perspective on personal financial literacy, but they don’t necessarily show the whole picture.
Certain things that are out of our control can affect Americans’ spending habits and debt. You may not realize it, but location, more specifically which state you reside in, can make a difference in how financially literate you are.
WalletHub used data from several sources to rank which states are the most and least financially literate. You might think you have a solid budget in place and enough money left in the bank for emergencies, but is your state as financially on top of things as the rest?
Financial Literacy Factors
WalletHub considered many factors when compiling its financial literacy ranking of all 50 states and the District of Columbia (D.C.). College education, emergency funds, credit scores, and surveys were among some key data points they analyzed.
Debt was a major factor WalletHub considered, while also being one of the biggest concerns for Americans. Reportedly, the average American between 30 to 39 years old owes approximately $26,000 in personal debt not tied to a mortgage. Those living in Georgia on average are in more debt than anyone else in the U.S. with an average of about $46,000 debt per person. But does debt alone place Georgia low on the financially literate list?
The following ranking starts with the most financially literate states, with higher total scores equating to more financial literacy. In contrast, the “financial planning & habits” and “financial knowledge & education” rankings are in inverse order, with “1” indicating the state is best in the nation for that category and “51” indicating it’s the worst. Since WalletHub included D.C. in its rankings, they assigned each state a ranking from 1 to 51.
1: Minnesota
- Total score: 72.46
- Financial planning & habits rank: 1
- Financial knowledge & education rank: 3
2: Nebraska
- Total score: 69.10
- Financial planning & habits rank: 30
- Financial knowledge & education rank: 5
3: Virginia
- Total score: 68.44
- Financial planning & habits rank: 12
- Financial knowledge & education rank: 1
4: Colorado
- Total score: 68.28
- Financial planning & habits rank: 2
- Financial knowledge & education rank: 18
5: New Hampshire
- Total score: 67.50
- Financial planning & habits rank: 9
- Financial knowledge & education rank: 23
6: New Jersey
- Total score: 67.49
- Financial planning & habits rank: 25
- Financial knowledge & education rank: 12
7: Utah
- Total score: 67.35
- Financial planning & habits rank: 11
- Financial knowledge & education rank: 2
8: Iowa
- Total score: 67.26
- Financial planning & habits rank: 32
- Financial knowledge & education rank: 14
9: Wisconsin
- Total score: 66.97
- Financial planning & habits rank: 4
- Financial knowledge & education rank: 28
10: Washington
- Total score: 66.60
- Financial planning & habits rank: 3
- Financial knowledge & education rank: 27
11: Florida
- Total score: 66.47
- Financial planning & habits rank: 15
- Financial knowledge & education rank: 6
12: Maryland
- Total score: 66.35
- Financial planning & habits rank: 14
- Financial knowledge & education rank: 20
13: Vermont
- Total score: 66.23
- Financial planning & habits rank: 23
- Financial knowledge & education rank: 26
14: Maine
- Total score: 65.61
- Financial planning & habits rank: 24
- Financial knowledge & education rank: 35
15: Oregon
- Total score: 65.45
- Financial planning & habits rank: 19
- Financial knowledge & education rank: 4
16: North Carolina
- Total score: 65.18
- Financial planning & habits rank: 37
- Financial knowledge & education rank: 8
17: Indiana
- Total score: 64.98
- Financial planning & habits rank: 40
- Financial knowledge & education rank: 7
18: Michigan
- Total score: 64.85
- Financial planning & habits rank: 26
- Financial knowledge & education rank: 17
19: Delaware
- Total score: 64.46
- Financial planning & habits rank: 10
- Financial knowledge & education rank: 24
20: Ohio
- Total score: 64.46
- Financial planning & habits rank: 41
- Financial knowledge & education rank: 10
Note: Ohio tied with Delaware.
21: Arizona
- Total score: 64.02
- Financial planning & habits rank: 34
- Financial knowledge & education rank: 25
22: Connecticut
- Total score: 63.88
- Financial planning & habits rank: 7
- Financial knowledge & education rank: 11
23: North Dakota
- Total score: 63.63
- Financial planning & habits rank: 16
- Financial knowledge & education rank: 31
24: Missouri
- Total score: 63.61
- Financial planning & habits rank: 44
- Financial knowledge & education rank: 9
25: Massachusetts
- Total score: 63.60
- Financial planning & habits rank: 8
- Financial knowledge & education rank: 37
26: West Virginia
- Total score: 63.49
- Financial planning & habits rank: 47
- Financial knowledge & education rank: 13
27: Pennsylvania
- Total score: 63.21
- Financial planning & habits rank: 21
- Financial knowledge & education rank: 34
28: Idaho
- Total score: 63.06
- Financial planning & habits rank: 20
- Financial knowledge & education rank: 22
29: Texas
- Total score: 63.04
- Financial planning & habits rank: 36
- Financial knowledge & education rank: 15
30: Illinois
- Total score: 62.52
- Financial planning & habits rank: 28
- Financial knowledge & education rank: 32
31: Wyoming
- Total score: 62.41
- Financial planning & habits rank: 29
- Financial knowledge & education rank: 44
32: Georgia
- Total score: 61.74
- Financial planning & habits rank: 43
- Financial knowledge & education rank: 19
33: Kansas
- Total score: 61.27
- Financial planning & habits rank: 35
- Financial knowledge & education rank: 41
34: New York
- Total score: 60.87
- Financial planning & habits rank: 17
- Financial knowledge & education rank: 42
35: New Mexico
- Total score: 60.47
- Financial planning & habits rank: 49
- Financial knowledge & education rank: 33
36: Montana
- Total score: 60.25
- Financial planning & habits rank: 38
- Financial knowledge & education rank: 47
37: Hawaii
- Total score: 60.24
- Financial planning & habits rank: 6
- Financial knowledge & education rank: 46
38: South Carolina
- Total score: 60.18
- Financial planning & habits rank: 33
- Financial knowledge & education rank: 38
39: Rhode Island
- Total score: 60.12
- Financial planning & habits rank: 18
- Financial knowledge & education rank: 40
40: Alabama
- Total score: 60.10
- Financial planning & habits rank: 42
- Financial knowledge & education rank: 21
41: Nevada
- Total score: 58.39
- Financial planning & habits rank: 31
- Financial knowledge & education rank: 39
42: District of Columbia
- Total score: 58.14
- Financial planning & habits rank: 13
- Financial knowledge & education rank: 49
43: California
- Total score: 58.05
- Financial planning & habits rank: 5
- Financial knowledge & education rank: 48
44: Louisiana
- Total score: 57.72
- Financial planning & habits rank: 48
- Financial knowledge & education rank: 29
45: Mississippi
- Total score: 57.70
- Financial planning & habits rank: 51
- Financial knowledge & education rank: 30
46: Tennessee
- Total score: 57.63
- Financial planning & habits rank: 39
- Financial knowledge & education rank: 36
47: Alaska
- Total score: 57.43
- Financial planning & habits rank: 22
- Financial knowledge & education rank: 51
48: Kentucky
- Total score: 57.42
- Financial planning & habits rank: 46
- Financial knowledge & education rank: 16
49: South Dakota
- Total score: 56.41
- Financial planning & habits rank: 27
- Financial knowledge & education rank: 50
50: Oklahoma
- Total score: 54.29
- Financial planning & habits rank: 50
- Financial knowledge & education rank: 45
51: Arkansas
- Total score: 53.16
- Financial planning & habits rank: 45
- Financial knowledge & education rank: 43
Slow Growth in Arkansas
Arkansas is the least financially literate state in America. One factor that might contribute to its low ranking is the state’s slow financial growth. In a 2023 report, Arkansas ranked last in the country when measuring personal income growth.
Arkansans trying to manage debt or saving for retirement may be affected by their state’s gross domestic product (GDP), which some experts have said is a good way to track wealth creation. In 2023, Arkansas’ GDP grew 0.7% over the last quarter, which was the lowest of all 50 states.
Minnesota’s Financial Literacy
In terms of the most financially literate states, Minnesota ranks first. One reason why many of its citizens are so good with their money might be because of how successful their local businesses are. According to one 2023 report, Minnesota ranks fifth in terms of which states are best for business.
In the same report, when it comes to infrastructure, which measures conditions like roads, bridges, and internet access, Minnesota ranks first. In another report from 2023, the Land of 10,000 Lakes ranks fifth in terms of which is the most recession-proof due to its strong GDP growth.
Wealth and Financial Literacy
New Jersey comes in as the sixth-most financially literate state, but it ranks first when it comes to which state is the richest, according to U.S. News & World Report. The Garden State holds a median income of approximately $96,000 per household.
That said, total wealth per state doesn’t necessarily equal high financial literacy. California, which ranked low at number 43 among the most financially literate states, has a high median income of almost $92,000 per household.
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How Much Money It Takes To Be in the Top 10% by State
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