Is CO the Smartest State With Finances?

Finances are something you can never know too much about. Understanding stocks, debt, and how to balance your bank accounts is vital for making sure you can afford your home, your vehicle, vacations, and avoid overdrawing your accounts and ending up broke. Being financially literate is something everyone should work on, but sadly, many people don't understand how finances work. Far too many people are in debt, have no savings account, and don't plan for the future. When it comes to understanding finances, how financially literate is Colorado compared to other states, and how do you learn more about finances in the Centennial State? 

The Best and Worst States at Understanding Finances

Learning finances can be tough for some, and an education in finances goes a long way. WalletHub recently released a list ranking the best and worst states at understanding finances and ranked them using categories such as wallet literacy, financial planning and habits, and financial knowledge and education. Using these criteria, it was determined that Minnesota is the state that understands finances the best, with Colorado coming in second, and Wisconsin being third. The worst state at understanding finances is Arkansas, with South Dakota being the second worst, and Oklahoma rounding out the bottom three. Sadly, Colorado is not in the top spot, but what makes the Centennial State so good at understanding finances? 

Understanding Finances in Colorado

Colorado is one of the best states at being financially literate, and ranks ninth in wallet literacy, first in financial planning and habits, and tenth in financial knowledge and education. One thing that Colorado has going for it is that the majority of residents have a bank account, with only 1.1 percent of people not having one, compared to other states that range from 2 percent to 10 percent. Another thing that is in Colorado's favor is that the state has the third-highest rate of adults 25 and older who have at least a bachelor's degree, at 46 percent of the population having one. Colorado also requires that there be education on personal finances in school to help residents prepare for their future. 

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To see the full study, make sure to click the link in the second paragraph above. If you are someone who is seeing your credit card debt rise and don't know how to get out of it, or have little to no savings, you may want to enroll in a financial class or talk to an expert. You can never know too much about finances, and living in Colorado gives you an advantage that no other state has.