New Jersey Residents Have More Rainy Day Funds

The foundation last year revealed results of its U.S. Financial Capability Study (see Poll Finds Few Retirement Planners), but has now released a state-by-state analysis.  New Jersey came out on top for the number of individuals who reported they spend less than their household income (48.7%) and have rainy day funds (47.8%).  

The state also had the fewest number of individuals reporting using non-bank borrowing methods (13.8%), which the foundation noted often results in higher interest rates and often attracts individuals with poor credit histories.  Non-bank borrowing methods include taking out an auto title loan or a payday loan, getting an advance on a tax refund, or using a pawn shop or rent-to-own store.  

However, when measuring financial literacy, New Hampshire scored best with a mean number of 3.3 correct answers out of five to a financial knowledge and decisionmaking quiz. Rhode Island had the highest number of individuals that comparison shop for credit cards (41.3%).  

A listing of states ranked most and least likely to engage in the five key measures of financial capability is here.  

In addition, a new Web site, http://www.usfinancialcapability.org, features a clickable map of the United States and allows the public, policymakers and researchers to delve compare the financial capabilities of Americans in every state and across geographic regions.