Most & Least Financially Literate States (2026)

Financial literacy is more important now than ever. Being financially literate can help people weather the difficulties of inflation and be prepared for future crises on the scale of the Great Recession or the COVID-19 pandemic.

But how much have we learned from past mistakes, and what are we doing to help future generations avoid repeating them? Not enough, it would seem. For example, we ended 2025 with nearly $1.39 trillion in total credit card debt, and nearly 2 in 5 Americans say they will have more credit card debt by the end of 2026.

It’s clear that better financial education is necessary to try to turn this trend around, and certain states are leading the way while others are lagging behind. To identify the states with the best financial literacy, WalletHub analyzed financial-education programs and consumer habits in each of the 50 states and the District of Columbia, along with the results of WalletHub’s proprietary WalletLiteracy Survey. Our data set of 17 key metrics ranges from high-school financial literacy grades to the share of adults with rainy-day funds.

“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. Because financial literacy is so essential, states should prioritize teaching it from a young age. It’s not surprising that the most financially literate states all require personal-finance education before students graduate from high school.”

Chip Lupo, WalletHub Analyst

Main Findings

Most Financially Literate States

Note: With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that state, where a rank of 1 represents the best conditions for that metric category.

WalletLiteracy Score

Best

• 1. Maine
• 2. Montana
• 3. Wyoming
• 4. Vermont
• 5. New Hampshire

Worst

• 47. Arkansas
• 48. Utah
• 49. Tennessee
• 50. Connecticut
• 51. Kentucky

Public High-School Graduation Rate

Highest

• 1. Wisconsin
• 2. Kansas
• 3. Nebraska
• 4. Minnesota
• 5. Virginia

Lowest

• 47. Hawaii
• 48. Vermont
• 49. Louisiana
• 50. District of Columbia
• 51. New Mexico

Share of Adults with Rainy-Day Funds

Highest

• 1. District of Columbia
• T-2. Maryland
• T-2. Massachusetts
• T-2. New Jersey
• T-5. Hawaii
• T-5. Minnesota
• T-5. Pennsylvania

Lowest

• T-47. Kentucky
• T-47. Wyoming
• T-49. Mississippi
• T-49. New Mexico
• 51. West Virginia

Best State vs. Worst State: 2x Difference

District of Columbia vs. West Virginia

Share of Unbanked Households

Lowest

• T-1. Vermont
• T-1. Virginia
• T-3. Colorado
• T-3. New Hampshire
• 5. Utah

Highest

• 47. Illinois
• 48. Georgia
• 49. District of Columbia
• 50. Louisiana
• 51. Mississippi

Best State vs. Worst State: 10x Difference

Vermont vs. Mississippi

Sustainable Spending Habits

Most

• 1. Kentucky
• 2. Ohio
• T-3. Massachusetts
• T-3. Minnesota
• T-3. Virginia

Least

• T-46. Kansas
• T-46. Montana
• T-46. Nevada
• T-46. New Mexico
• T-46. Rhode Island

Best State vs. Worst State: 2x Difference

Kentucky vs. New Mexico

Share of Adults Borrowing from Nonbank Lenders

Lowest

• 1. Massachusetts
• T-2. Pennsylvania
• T-2. Vermont
• T-4. Hawaii
• T-4. New York

Highest

• T-46. Arkansas
• T-46. Wyoming
• 48. Texas
• 49. Nevada
• T-50. Mississippi
• T-50. Oklahoma

Best State vs. Worst State: 2x Difference

Massachusetts vs. Oklahoma

Show More

In-Depth Look at the Most Financially Literate States

Minnesota

Minnesota is the most financially literate state, with financial education baked into the K-12 curriculum and high schoolers required to take at least one personal-finance related course. Minnesota also has the third-lowest percentage of adults who spend more money than they make, at 23%.

Minnesotans’ good financial literacy is demonstrated by the fact that they have the highest median credit score in the country, at 750. That falls within the excellent credit range, and it shows that residents are handling credit very responsibly, including paying on time and keeping their utilization low.

Due to their good financial education and solid habits, 52% of Minnesotans have rainy day funds that can cover at least three months of expenses. While that might not sound exceptional, it’s actually the third-highest percentage in the country.

Colorado

Colorado is the second-most financially literate state, and one way that’s demonstrated is the fact that very few households don’t have a bank account, at just 1.10%. In most other states, anywhere from 2% to 10% of households don’t have one.

One contributing factor to why Colorado residents are financially literate is the fact that many people have pursued higher education. Colorado has the third-highest rate of people aged 25+ who have at least a bachelor’s degree, at around 46%.

Like the other top state, Colorado also requires education on personal finance in schools.

Wisconsin

Wisconsin is the third-most financially literate state, and this starts at a young age, with students in the state required to take at least one personal-finance class, and additional financial education being part of the K-12 curriculum.

Wisconsinites also score well on WalletHub’s WalletLiteracy Test, with residents having the 15th highest average score in the nation. This test is a great way to check your financial knowledge and even learn a few new things along the way.

The median credit score in Wisconsin is 743, well into the good credit range, and residents easily have the potential to reach excellent credit (a score of 750+) with continued responsible behavior.

Detailed Findings

Correlation Analysis

Ask the Experts: Fostering Financial Literacy in the U.S.

Financial literacy is a growing area of focus for academics, from public-school policymakers to university researchers. For insight into the current state of financial literacy as well as what the federal government, states and parents can do to help society improve, we turned to a select group of educators. You can read their bios and responses below.

1. What should policymakers do to improve financial literacy?
2. How can parents equip their kids with financial know-how?
3. To what degree should financial literacy be a part of the K-12 curriculum? What are the most effective ways to teach financial concepts in schools?
4. What's the right balance between expecting consumers to educate themselves versus regulating financial service providers?
5. What are some important personal finance management tips during the current economic environment?
6. How does social media affect financial literacy?

Ask the Experts

Christian P. Neuman
Ph.D., MBA – Assistant Professor of Marketing, Parker College of Business - Georgia Southern University
Read More

Andrew Burnstine
Ph.D., Associate Professor, College of Business and Management - Lynn University
Read More

Guan Jun Wang
Ph.D., Professor of Finance, McAfee School of Business - Union University
Read More

Latha Ramchand
Ph.D., Chancellor, IU Indianapolis, Executive Vice President, Indiana University
Read More

Marybeth Gasman
Samuel DeWitt Proctor Endowed Chair in Education & Distinguished Professor, Graduate School of Education and Associate Dean for Research, Rutgers Graduate School of Education; Past Chair, Rutgers University-New Brunswick Faculty Council (2021-2023); Executive Director, Samuel DeWitt Proctor Institute for Leadership, Equity, & Justice & Rutgers Center for Minority Serving Institutions - Rutgers University-New Brunswick
Read More

Luisa Blanco
Ph.D., MBA – Professor of Public Policy and Economics, School of Public Policy and NBER Research Affiliate - Pepperdine University
Read More

More Experts

Methodology

In order to distinguish the most financially literate states from the least, WalletHub compared the 50 states and the District of Columbia across three key dimensions: 1) WalletHub’s “WalletLiteracy Test” Score, 2) Financial Planning & Habits and 3) Financial Knowledge & Education.

We evaluated those dimensions using 17 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the highest level of financial literacy.

We then determined each state’s weighted average across all metrics to calculate its overall score and combined those results with the responses to our WalletLiteracy Test to rank-order our sample.

Financial Planning & Habits – Total Points: 25

• Median Credit Score: Full Weight (~1.67 Points)
• Share of Adults Who Spend More than They Earn: Triple Weight (~5.00 Points)
  Note: “Adults” include the population aged 18 and older.
• Share of Adults with Rainy-Day Funds: Triple Weight (~5.00 Points)
  Note: “Adults” include the population aged 18 and older.
• Share of Adults Who Save for Their Children’s College Education: Double Weight (~3.33 Points)
  Note: “Adults” include the population aged 18 and older.
• Share of Adults Who are Confident in Achieving Long Term Financial Goals: Full Weight (~1.67 Points)
  Note: “Adults” include the population aged 18 and older.
• Share of Adults whose Household has a Budget: Full Weight (~1.67 Points)
  Note: “Adults” include the population aged 18 and older.
• Share of Unbanked Households: Full Weight (~1.67 Points)
• Share of Adults Borrowing from Nonbank Lenders: Full Weight (~1.67 Points)
  Note: “Adults” include the population aged 18 and older.
• Share of Adults Paying Only Minimum on Credit Card(s): Full Weight (~1.67 Points)
  Note: “Adults” include the population aged 18 and older.
• Share of Adults Who Compare Credit Cards Before Applying: Full Weight (~1.67 Points)
  Note: “Adults” include the population aged 18 and older.

Financial Knowledge & Education – Total Points: 25

• High-School Financial Literacy Grade: Double Weight (~9.09 Points)
  Note: Based on The American Public Education Foundation’s “The Nation’s Report Card”.
• Public High-School Graduation Rate: Full Weight (~4.55 Points)
• Share of Students Required to Take at Least One Personal Finance Course: Half Weight (~2.27 Points)
• Share of Adults Who Attended Financial-Education Classes or Counselling Sessions in Past 12 Months: Half Weight (~2.27 Points)
  Note: “Adults” include the population aged 18 and older.
• Share of Adults Using Online Financial Services: Half Weight (~2.27 Points)
• Share of Adults with at Least a Bachelor’s Degree: Full Weight (~4.55 Points)
  Note: “Adults” include the population aged 25 and older.

Wallethub’s ‘WalletLiteracy Test’ Score – Total Points: 50

The results displayed below were calculated based on the grades earned by respondents to WalletHub’s WalletLiteracy Test. We collected a total of 46,732 responses nationally. The sample employed was based on WalletHub’s community of members.

The following scale determined each state’s WalletLiteracy grade:

 
Sources: Data used to create this ranking were collected as of March 4, 2026 from the U.S. Census Bureau, National Center for Education Statistics, TransUnion, Federal Deposit Insurance Corporation, FINRA Investor Education Foundation, National Telecommunications and Information Administration, American Public Education Foundation, Council for Economic Education and WalletHub research.

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