October is National Financial Planning Month (yes, apparently that’s a thing) and the Yellowhammer State has ranked near the bottom of the list when it comes to being a Financially Savvy State.
“Financial literacy is key to sound financial health. But financial savvy is what differentiates the comfortable from the truly stable,” wrote WalletHub. “Unfortunately, a staggering lack of money smarts plagues Americans, according to a study on financial literacy conducted by the National Foundation for Credit Counseling.”
Which is why personal finance website WalletHub, conducted a study on 2018’s Most & Least Financially Savvy States. In order to determine where Americans practice the best money habits, WalletHub compared the 50 states and the District of Columbia across 24 key metrics that speak to their residents’ financial savvy or the lack thereof. The data set ranges from annual savings-account average to personal-bankruptcy rate to credit-card debt as a share of income.
Financial savvy in Alabama (1= most; 25= avg.)
- 50th: Median credit score
- 31st: Foreclosure Rate
- 50th: % of credit usage
- 32nd: Housing expenses as % of median home price
- 49th: % of unbanked households
- 42nd: Delinquency rate on mortgages, auto loans, student loans and credit cards
- 41st: % of adults with rainy-day funds
- 24th: Total debt as % of median income
Massachusetts, New Hampshire, and North Dakota took the top three spots for financial savviness, meanwhile, West Virginia, Arkansas, and Mississippi placed in the bottom three.
Here’s how Alabama compares to the rest of the country: