New Hampshire is the best and Mississippi is the worst when it comes to the financial literacy of its residents, according to a survey by WalletHub.
WalletHub considered a number of factors such as people’s borrowing rates, spending habits and how many people have a rainy day fund or a bank account in grading the states.
The problem of a lack of financial literacy is exhibited by the fact that more than $73 billion in new credit card debt has been amassed since the beginning of 2012, WalletHub says. Also, only two out of five adults have a budget, 10 percent of Americans spend more than they make, and 60 percent do not have a rainy day fund.
It is a problem that has to be addressed by the federal government, state education systems and parents, WalletHub says.
The top five best states for financial literacy are New Hampshire, Utah, Virginia, New Jersey and Minnesota. The five that bring up the rear are, in ascending order, Mississippi, Arkansas, Nevada, Louisiana and New Mexico.