A recent survey conducted by the FINRA Foundation indicates that financial literacy among U.S. consumers is highly varied depending on demographic group and geographic area of residence.
Certain states, including New York, New Jersey and New Hampshire, were found to house the most financially literate consumers in the country, according to a recent press release. Kentucky and Montana were found to be the least financially literate states, with their residents performing worse in measures of fiscal responsibility and knowledge than consumers in other states. Perhaps unsurprisingly, young people were found to be less financially capable than older individuals, and were found to be more likely to engage in borrowing outside of banks or other established credit institutions.
According to the release, the findings of the survey indicate a pressing need for American consumers to educate themselves to better manage their financial situations. Unwise financial decisions made out of a misunderstanding about how credit works can damage a consumer’s credit history, and a bad credit history can adversely impact a consumer’s future financial constraints.