The 5 most financially literate states in the U.S. — and the 5 least
'It’s not surprising that the most financially literate states all require personal-finance education before students graduate from high school,' said one analyst.
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With tariffs, war, and inflation woes, financial literacy is more important than ever.
WalletHub set out to find the most financially literate states, where residents know how to stick to their budget, invest money, and build a nest egg for retirement.
“Too many Americans lack comprehensive financial literacy, which causes them to have lower credit scores, prevents them from getting credit with good interest rates and lowers the amount of wealth they build throughout their life, among other negative consequences,” said WalletHub analyst Chip Lupo.
To pick the states where people seem to have the greatest understanding of their finances, WalletHub looked at more than a dozen metrics, including the median credit score, the share of adults who spend more than they earn, and the amount of adults saving for future expenses. It looked at education stats, such as whether high schools in the state teach financial literacy and graduation rates. It also gave each state a WalletLiteracy score based on its survey results.
“It’s not surprising that the most financially literate states all require personal-finance education before students graduate from high school,” said Lupo.
Continue reading to see which states are the most financially literate.
1 / 10
5th best: Virginia
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Virginia ranked fifth overall, anchored by strong results in Financial Knowledge & Education and Financial Planning & Habits, where it placed second and third in the country, respectively.
2 / 10
4th best: New Hampshire
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New Hampshire ranked fourth overall, with strong performances across multiple dimensions — placing fifth in the nation in both WalletLiteracy and Financial Planning & Habits.
3 / 10
3rd best: Wisconsin
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Wisconsin ranked third overall, with a top-three finish in Financial Knowledge & Education. It placed 11th in Financial Planning & Habits and 15th in WalletLiteracy.
4 / 10
2nd best: Colorado
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Colorado ranked second overall, earning the top spot nationally in Financial Planning & Habits. It placed ninth in WalletLiteracy and tenth in Financial Knowledge & Education.
5 / 10
Best: Minnesota
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Minnesota ranked first overall, earning the top spot in the nation in Financial Knowledge & Education. It also places sixth in Financial Planning & Habits and seventh in WalletLiteracy
6 / 10
5th worst: Louisiana
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Louisiana ranked fifth lowest, with below-average marks across all three dimensions — placing 43rd in WalletLiteracy, 46th in Financial Planning & Habits, and 39th in Financial Knowledge & Education.
7 / 10
4th lowest: Alaska
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Alaska ranked fourth lowest. Despite placing sixth nationally in WalletLiteracy, the state's overall standing is weighed down by a 50th-place ranking in Financial Knowledge & Education.
8 / 10
3rd lowest: Oklahoma
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Oklahoma ranked third lowest. Its weakest area is Financial Planning & Habits, where it also ranked 49th nationally. It places 44th in Financial Knowledge & Education and 35th in WalletLiteracy.
9 / 10
2nd lowest: South Dakota
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South Dakota ranks second-to-last, finishing last in the country in Financial Knowledge & Education. A relatively stronger WalletLiteracy ranking of 14th is not enough to offset its poor performance in the other two dimensions.
10 / 10
Lowest: Arkansas
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Arkansas ranks last overall out of all 50 states and Washington, D.C. The state lands near the bottom in all three dimensions — 47th in WalletLiteracy, 45th in Financial Planning & Habits, and 46th in Financial Knowledge & Education.