People in These 10 States Are Likely Better With Money — See What They Have in Common
Written by
Marc Guberti
Edited by
Cory Dudak
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If you’re good at managing money, you might be in a cold location with low winter temperatures. WalletHub recently ranked each U.S. state based on its financial literacy. Colder states dominated the list, with only one southern state making the top 10 list — and it’s the furthest up southern state in the country.
Fortunately, your location alone doesn’t guarantee whether you’ll be good or bad at finances. Some people are financially affluent in states that were at the low end of WalletHub’s list, while others in the top 10 states are struggling with debt.
Top 10 Most Financially Literate States
WalletHub ranked each state based on its financial education programs, consumer habits and the results of the WalletLiteracy Survey. These were the top states:
- Minnesota
- Colorado
- Nebraska
- Virginia
- Wisconsin
- New Hampshire
- Iowa
- Washington
- Vermont
- New Jersey
All of these states get cold in the winter, while some of the warmest states ranked lower on the list. Every state in the bottom 10 (except for Alaska) has mild winters. The cold winters may cause people to go out less often, and that may translate into fewer people spending money.
Economic Hubs Weren’t the Winners
Some states generate more business than others, but some of the states that are well-known for business prowess didn’t rank high on the list. Florida is a notable exception, as it was the 14th most financially literate state. However, Illinois, New York, and California finished 32nd, 35th, and 43rd, respectively, despite having some of the largest metropolitan areas in the country.
The presence of big cities may cause people to spend more money and contend with higher expenses, making it harder for them to pay off debt and follow other good financial habits. Texas is another big economic hub due to Austin, Dallas, San Antonio and other cities, and it finished in 29th overall.
Blue States Are Heavily Concentrated in the Top 10
Seven of the 10 top states in this list were blue states. Nebraska, Wisconsin and Iowa were the only red states that made the top 10. Furthermore, California and Hawaii are the only blue states that are in the bottom 10 of financially literate states.
Some Republican voters are great at managing their finances, while some Democratic voters are in debt, but the survey’s results point to blue-leaning states having higher financial literacy. Urban centers and more concentrated populations may give blue states an edge, as it gives employers more reasons to set up locations in those states.
The “Financial Planning and Habits” ranking may also explain why blue states are in the top 10. Only two red states rank in the top 10. Utah is in 10th place, but its 47th placement for the WalletLiteracy category contributed to an overall score of 13. Utah also ranked 2nd in the “Financial Knowledge and Education” category.
The “Financial Knowledge and Education Rank” is more balanced, with Utah, Missouri, Nebraska, Ohio, Florida and Indiana being the six red states in the top 10. The WalletLiteracy Rank is also split down the middle, with Montana, Wyoming, Alaska, Nebraska and Iowa showing up in the top 10.
If you ignore the “Financial Planning and Habits” category, the amount of red and blue states is more balanced, but their influence on the total ranking results in blue states having an outsized presence at the top of the list.
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