People Who Live in These 5 States are the Most Financially Savvy
Where you live may have something to do with how good you are with money. In fact, those who live in certain states may have a stronger grasp on financial literacy than others, according to a new study by personal finance resource, WalletHub.
Using data from a number of resources, including the U.S. Census Bureau and the FDIC, WalletHub compared 50 states and the District of Columbia in four key financial areas. Areas included debt and spending, financial literacy, credit, and saving. Approximately 24 metrics were examined to arrive at which states had the most financially savvy residents.
So which states scored at the top and what areas did residents shine? Find out if your state ranked in the top five:
Connecticut residents have some of the lowest debt levels as compared to their median income and are in the top 10 for saving. However, residents had one of the highest uses of credit, which shows that Connecticut residents are serious about making sure debts are paid.
Residents need to be good money managers, as Connecticut was ranked as the eighth most expensive state in the country, according to according to a CNBC study. Bridgeport-Stamford-Norwalk Metro the most expensive cities in the state and the average home costs about $681,279.
People who live in Minnesota have the highest median credit scores in the union, WalletHub found. One reason resident’s scores are so high may be that people in this state know how to save. Minnesota residents ranked number three for having the highest percentage of the population with a rainy day fund. Maintaining a rainy day or emergency fund helps you avoid going into debt or dipping into savings to meet life’s unexpected expenses.
3. North Dakota
If you live in North Dakota, you probably have a high credit score. The state ranked number two, behind Minnesota for the highest media credit score. One reason why scores are so strong is that people in the state pay their debts on time. North Dakota residents ranked number one for paying mortgages, student loans, credit cards and student loans on time.
Homes in North Dakota also had the very lowest rate of foreclosures and one of the lowest percentage of the population spends more money than they earn. Finally, residents in North Dakota had the highest rate of having a rainy day fund too.
2. New Hampshire
New Hampshire residents ranked number one for financial literacy and were just behind North Dakota for having a rainy day fund. People in the state also save the most, as New Hampshire ranked number three on debt and spending.
However, despite the high rank, New Hampshire didn’t fall into any other extremes for being the best (or the worst).
The state with the highest rank across the board was Massachusetts. People in this state had one of the lowest total debt as compared to median income ranks. Plus people in the state live within their means. Massachusetts residents ranked number one for having the lowest percentage of the population spending more than they earn.
Although this state ranked number one overall, people in Massachusetts still have a hard time saving money. Residents ranked number 17, which may speak to the high cost of living. The state was the third most expensive state in the country according to the CNBC study. Boston is the most expensive city in the state and the average home price is about $604,205.
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