The idea of a comfortable retirement seems far-fetched for many, but there is a way to help make that chapter of your life possible – by increasing your financial knowledge and improving your financial behavior.
The Employee Benefit Research Institute in Washington, D.C. recently released a new study that shows the difference in financial literacy and behavior between states around the country. Here is the top ten list of the least financially literate states and their overall scores. The scores were compiled by adding each states score of literacy and behavior. The highest scores are considered the worst and therefore, part of the dumbest states for their financial IQ’s.
10. Texas – 83
9. North Carolina – 84
8. Alabama – 85
7. Ohio – 85
6. Tennessee – 87
5. Kentucky – 91
4. West Virginia – 96
3. Louisiana – 97
2. Arkansas – 97
1. Mississippi – 99
This data shows that states with lower literacy scores, also have lower financial behavior scores.
How can you help break this cycle? Be part of the solution by increasing your own financial knowledge and providing financial education to those around you. The more you know about your finances, the more prepared you will be for unexpected expenses, debt and retirement. In need a good resource? While we generally do not plug our educational programs on the blog, a mention today could be quite helpful. Consider a subscription to our GoodMoneyHabits.com or the college student version, GMHStudents.com. These web-based financial education programs are strictly educational without any products sold and free from any conflict of interest.
To read more about this study, click here for the entire article from AdvisorOne.