Study: S.C. One of Most Financially Illiterate States

Observer Reports

According to a new study by by WallHub, South Carolina residents are among the most financially illiterate in the nation, ranking 43.

The study found the state ranked:

  • 31st – WalletHub’s ‘WalletLiteracy Survey’ Score

  • 34th – percentage of Adults Aged 18+ Who Spend More than They Earn

  • 28th – percentage of Adults Aged 18+ with Rainy-Day Funds

  • 41st – percentage of Unbanked Households

  • 39th – percentage of Adults Aged 18+ Who Compare Credit Cards Before Applying

  • 39th – High-School Financial Literacy Grade

After the Great Recession, it became clear that more people needed to learn financial literacy. The housing-market collapse and following financial crisis reminded Americans of our obsession with debt and the dangers of quick access to finances for under-informed consumers. The importance for people to be smart about their finances became even more pronounced during the COVID-19 pandemic, and remains crucial in the present during this period of high inflation.

But how much have we learned from past mistakes, and what are we doing to help future generations avoid repeating them?

Not enough, it would seem. We ended 2022 with over $1 trillion in total credit-card debt. 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. The problems aren’t as pronounced in every state, though. Some states are more responsible than others.

In order to find the states with the best financial literacy, WalletHub analyzed financial-education programs and consumer habits — combined with the results of WalletHub’s proprietary WalletLiteracy Survey — in each of the 50 states and the District of Columbia. Our data set of 17 key metrics ranges from high-school financial literacy grade to share of adults with rainy-day funds.

Greg Wilson