With April recognized as National Financial Literacy Month and nearly 2 in 5 Americans say they will have more credit card debt by the end of 2026, the free credit score company WalletHub has released its report on 2026’s Most & Least Financially Literate States. The report evaluates financial-education programs and consumer habits across all 50 states and the District of Columbia, along with insights from experts.
The study is based on a data set of 17 key metrics, ranging from high-school financial literacy grades to the share of adults with rainy-day funds. It also incorporates findings from WalletHub’s WalletLiteracy Survey.
| Most Financially Literate States | Least Financially Literate States |
| 1. Minnesota | 42. District of Columbia |
| 2. Colorado | 43. New Mexico |
| 3. Wisconsin | 44. Hawaii |
| 4. New Hampshire | 45. Montana |
| 5. Virginia | 46. Mississippi |
| 6. Pennsylvania | 47. Louisiana |
| 7. Ohio | 48. Alaska |
| 8. Nebraska | 49. Oklahoma |
| 9. New Jersey | 50. South Dakota |
| 10. Maryland | 51. Arkansas |
Key Stats
- Kentucky has the lowest share of residents who spend more than they earn, which is 1.8 times lower than in New Mexico, the state with the highest.
- Pennsylvania and Minnesota have the lowest share of residents paying only the minimum on their credit card(s), which is 1.6 times lower than in West Virginia and Wyoming, the state with the highest.
- Colorado has the highest share of residents who attended financial-education classes or counseling sessions in past 12 months, which is 3.8 times higher than in West Virginia, the state with the lowest.
- Vermont and Virginia have the lowest share of unbanked households, which is 10.4 times lower than in Mississippi, the state with the highest.
To view the full report and your state or the District’s rank, please visit:
https://wallethub.com/edu/
“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.”
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“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. The North Star State 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 which shows that they are handling credit very responsibly.”
- Chip Lupo, WalletHub Analyst
Expert Commentary
What should policymakers do to improve financial literacy?
“Improving financial literacy benefits not only individuals but society as a whole – it can help reduce poverty, lower financial stress that contributes to family instability, and promote overall economic stability. For this reason, policymakers should make financial literacy a priority in their agenda. There are several practical steps policymakers can take. First, they can integrate financial literacy into the K–12 curriculum so that students build essential money management skills early in life. Second, they can support community-based education by offering free workshops or seminars at local libraries and community centers. Third, expanding access to free or low-cost financial counseling services can help individuals make better decisions about budgeting, debt, and long-term planning. By combining early education with accessible resources for adults, policymakers can create a more financially informed and resilient population.”
Guan Jun Wang, Ph.D. – Professor, Union University
“Policymakers must move financial education from an optional elective to a mandatory graduation requirement to ensure economic equity… Beyond mandates, governments should provide dedicated funding for specialized teacher training so that these lessons are substantive rather than just a box-checking exercise. By treating financial literacy as a core public asset, policymakers can help the next generation avoid high-interest debt traps and start building generational wealth much earlier in life.”
Andrew Burnstine, Ph.D. – Associate Professor, Lynn University
What are some important tips for managing personal finances in the current economic environment?
“Start with a budget. Understanding where your money is going is the first step toward making better financial decisions. It is also wise to build an emergency fund with several months of living expenses, particularly if you are concerned about job instability or economic uncertainty. Finally, remember that financial markets have historically recovered over time. If you are able to continue investing during downturns, especially through consistent contributions to retirement accounts, those investments may benefit from long-term market growth.”
Christian P. Neuman – Assistant Professor, Georgia Southern University
“Managing money in 2026 requires a proactive strategy to combat the lingering effects of inflation while protecting your long-term savings. Your priority should be building an emergency fund that covers at least six months of expenses to serve as a primary defense against unexpected economic shifts. It is also vital to audit your recurring digital subscriptions and high-interest debt, as small monthly leaks can significantly derail a savings plan over time. You should also consider diversifying your investments into assets that traditionally hold their value during periods of rising prices. By keeping a close eye on your credit utilization and staying disciplined with a flexible budget, you can maintain your financial health regardless of the broader economic climate.”
Andrew Burnstine, Ph.D. – Associate Professor, Lynn University
To what degree should financial literacy be part of the K–12 curriculum? What are the most effective ways to teach financial concepts in schools?
“Financial literacy should be addressed in high school at the latest. The basics of planning for a financial future, including budgeting, credit scores, retirement savings, and the benefits and risks associated with credit cards, are essential life skills. Few other topics we learn in school have such direct consequences for everyday life. Many adults cannot remember the last time they used cursive or needed to recall that the powerhouse of the cell is the mitochondria, yet nearly everyone must make financial decisions every week. The most effective way to teach these concepts is through practical application. Students should work through realistic scenarios such as building a monthly budget, comparing student loan repayment plans, or calculating how interest compounds over time. These lessons are also a good opportunity to introduce basic behavioral finance concepts, such as how present bias or overconfidence can lead people to make short-term decisions that harm their long-term financial health. Modern financial literacy should also include digital financial risks. Students increasingly encounter buy-now-pay-later services, online investing platforms, cryptocurrency, and sophisticated financial scams. Helping students understand these tools and risks can prevent costly mistakes early in adulthood.”
Christian P. Neuman – Assistant Professor, Georgia Southern University
“Financial literacy should play a meaningful role in the K–12 curriculum, at least as an elective or integrated component within existing courses. Ideally, it should be introduced early and reinforced over time so students can gradually build practical money management skills. A key concept to teach students is that most financial decisions are made under constraints – especially budget constraints. Helping students understand trade-offs, opportunity costs, and the limits of available resources prepares them to make more responsible spending and saving decisions. In terms of teaching methods, financial literacy is most effective when it is engaging and applied. Using real-life scenarios, case studies, simulations, and even movies can make abstract concepts more relatable. For example, students can analyze everyday situations – such as choosing between spending and saving, or using credit versus cash – to see the consequences of different decisions. Interactive and practical approaches like these help students retain knowledge and apply it in real life.”
Guan Jun Wang, Ph.D. – Professor, Union University
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