The 10 Most Financially Smart U.S. States (And the 10 Least)

Some states are more financially smart depending on the residents and their understanding of different financial issues, according to a study by data automation platform Dancing Numbers.

The study looked at financial data like credit scores, retirement savings, and whether the state is financially prepared for an emergency to decide which locations are the smartest when it comes to using and saving money wisely.

“Financial literacy is one thing, but financial behavior is what truly matters,” said Punit K Jindal, founder of Dancing Numbers, who noted the study examined real-world financial actions that separate financially secure households from those living paycheck to paycheck.

So how did your state fare when it came to finances?

The Smartest States for Finances

The financial state of residents in Vermont topped the list, with the Green Mountain State making a strong showing due to its low credit debt per capita and its strong credit score. State residents hold credit debt of $3,640 per capita, below the national average of $4,180 per capita.

Retirement savings helped South Dakota get its second-place spot on the list. The state has a high rate of participation in retirement savings programs by low-income workers, with 26.1% of that population saving money for when they retire, making it the second-highest participation in the top 10 of the survey’s states. It also has the lowest per capita credit debt, with only $3,410 per capita.

“Financial discipline can thrive independently when individuals develop strong saving and spending habits on their own,” Jindal said.

In nearby Minnesota, residents are also showing off their financial savvy, with the state having the highest average credit score in the top 10. Minnesotans have an average credit score of 742, compared to the national average credit score of 715. But the state got bogged down in the rankings with a bankruptcy rate that was higher than Vermont’s and South Dakota’s.

While some states are financially strong, others are financially floundering with their lack of monetary awareness.

The Least Smartest States for Finances

Florida seems to be struggling the most with its $4,840 in credit card debt per capita, ranking as one of the worst levels by state in the country. High debt can weigh down credit scores, with Florida’s 707 average credit score coming in below top-performing states.

“When high debt combines with low savings rates and a lack of supportive financial infrastructure, people face significant barriers to wealth building,” Jindal noted.

Credit scores in second-place Alabama are even worse, with an average credit score of 692. But the state does have 21.3% of low-income workers participating in a retirement savings program to give it a little bit of a boost.

On the other hand, third-place Delaware has only 19.1% of its low-income workers participating in retirement savings, which hurts the state’s financial smarts ranking.

“Low participation rates suggest there are barriers to access or awareness that prevent people from taking advantage of resources designed to help them build financial security,” according to Jindal.

The good news is that there are ways to boost your knowledge to get you on the path to financial success. Think about your own finances and how they could benefit by creating a budget, paying off your debt, or learning more about personal financial issues like your credit score or retirement savings.

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