A recent MReport discusses where the most financially literate Americans live. Because of the financial strain the COVID-19 pandemic has caused, experts believe it is very important to be financially capable. WalletHub conducted a study to determine which cities were the best and worst at money management in 2021. The survey revealed that just over half of respondents consider themselves knowledgeable in regards to personal finance. Additionally, researchers found that two in five adults have a consistent budget and are aware of their spending habits. Adam McCann, a financial writer at WalletHub stated, “Money management is a life skill that unfortunately isn’t taught as often as it should be. It’s a skill that everyone should want to learn too, as it can bring about flawless credit and freedom from debt”. WalletHub compared roughly 2,500 cities based on 10 key money management indicators, such as credit scores, mortgage debt to income ratio, and foreclosure rates.
WHAT ARE THE MOST FINANCIALLY LITERATE CITIES?
Cupertino, Scarsdale, and Saratoga were found to be the most-financially literate cities. Bastrop, Lithonia, and Fairburn were at the bottom of the list of financially literate cities. According to Linda M. Hooks, an Economics professor, learning basic financial skills is a part of the Virginia high school curriculum. Hooks comments, “I support this approach because almost every person will encounter certain basic situations that require some financial knowledge, such as getting a job, obtaining a credit card, and paying taxes”. The report notes that many experts agree an increase in financial education would benefit young people. It also emphasizes that even those who were fortunate enough to have stable income and escape the worst of the pandemic, it is important to remember to be prepared for unpredictable circumstances.
Click here to read the full MReport and learn more!
Click here to read the WalletHub report.
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