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Report: Minnesota 7th-most financially literate state

The research by personal finance website WalletHub compared states in metrics from high school financial education to rainy-day funds.

ST PAUL, Minn. — To be good with money, you have to understand how it works. 

And Minnesotans do, according to a new report from personal finance website WalletHub that ranks the state 7th overall in financial literacy.

WalletHub's study comparing the 50 states and the District of Columbia is based on scores in 17 key metrics, ranging from high school business and finance education to credit card payments and rainy day savings funds. 

Virginia tops the list of most financially literate states, with Utah, Colorado, New Hampshire and New Jersey rounding out the top five. New Mexico, Mississippi, Arkansas, Louisiana and Alaska are at the bottom of the list. 

The study also ranks financial literacy levels in several categories like age, education, and economic status. 

Here's how Minnesota earned its top-ten ranking, with solid scores in several key metrics. 

Financial Literacy in Minnesota (1=Most Financially Literate, 25=Avg.):

  • 5th – WalletHub’s ‘WalletLiteracy Survey’ Score
  • 5th – % of Adults Aged 18+ with Rainy-Day Funds
  • 6th – % of Unbanked Households
  • 10th – % of Adults Aged 18+ Paying Only Minimum on Credit Card(s)
  • 4th – High-School Financial Literacy Grade

"The importance for people to be smart about their finances has become even more pronounced during the COVID-19 pandemic, amid high levels of unemployment and restrictions on businesses," reads a post on WalletHub's website. "We ended 2020 with close to $1 trillion in total credit-card debt, even after record-breaking paydowns due to the COVID-19 stimulus. Our mountain of debt is unsurprising, considering that less than half of adults actually have a budget. It’s clear that better financial education is necessary to try to turn this trend around."

For a look at the complete report check out the WalletHub website.