Louisiana is 2023′s second least financially literate state according to a new WalletHub study. Louisiana ranked 50 of 51 states as one of the least financially literate states. WalletHub Analyst, Jill Gonzales says Louisiana ranks poorly in several categories including “unbanked households”.
“This typically means payday loans and those are very predatory. You’re often not borrowing from the bank you’re borrowing from untrustworthy sources. That’s another big problem in Louisiana as well.”
The study shows Louisianans also rank low in sustainable spending – with large credit card bills and spending more money than earned. Gonzales says consumer habits in Louisiana show poor money management and on average only, the minimum amount is paid on credit card bills.
“We also see that they’re leaving balances on revolving bases. So you’re paying more and more in interest. Right now, that’s not good because the Federal Reserve keeps raising interest rates.”
WalletHub’s wallet literacy survey that analyzes mortgage, interest rate, and retirement literacy ranked Louisiana below average. Overall, the state is the third worst education state in the country and ranked 18th in high school financial literacy scores. Gonzales says making an impact in education would be a step towards increasing basic concepts in money management for all ages.”
“I think if you set that foundation for education at an early age, then obviously all types of education will get better including financial education and literacy.”
The importance for people to be smart about their finances became even more pronounced during the COVID-19 pandemic and remains crucial in the present during this period of high inflation.
