Second only to Mississippi, Louisiana is among the least financially literate states in the U.S., according to the National Report Card on Adult Financial Literacy.
The report—which comes from the The Center for Financial Literacy at Champlain College in Burlington, Vermont—assigns Louisiana an overall D grade. Mississippi is the only state with an F overall grade, and it’s the only state with a lower average weighted grade than Louisiana. While seven states received a D+ overall grade, only three others—Alabama, Arkansas and Oklahoma—were graded a D in the report card.
The overall grade for each state comprises the weighted average of five financial literacy category grades: credit, saving and spending, retirement readiness and other investing, financial knowledge, and protect and insure.
Louisiana received its highest grade in the financial knowledge category, a D+. It was given a D grade in the categories of credit, and saving and spending; a D- in the protect and insure category; and an F for retirement readiness.
“Too many adults in our country lack the necessary skills to make good choices when it comes to saving for the future, buying a car or a home, and planning for retirement,” says Champlain College President Donald Laackman in the report’s introduction. “It is clear from the number of states with failing grades that we urgently need a national conversation on this vital priority. We strongly believe that the long-term health of the nation’s economy requires financially educated consumers who are able to make the best choices when it comes to managing their money, investing wisely and making sound financial decisions. The conversation with policymakers, advocates and interested citizens on how to better address financial literacy in our country needs to begin now.”
Minnesota, North Dakota, Utah and Hawaii scored the best marks in the report, and all were graded A- overall. The U.S. on average received an overall C grade.
