Washington residents earned a fifth-place ranking among the states in a new Kiplinger’s Personal Finance list of the states’ financial literacy.
On the plus side, nine out of ten Washington residents reported they had a savings account, a money market account or a certificate of deposit, ranking the state second in that category nationally, said the magazine.
Evergreen State residents ranked third in the nation for putting money aside for a rainy day. When you’ve got so many days with precipitation, it just makes sense to have a “rainy day” account.
Washington residents also ranked high in financial knowledge. Some 64 percent of them knew that it was safer to own a mutual fund than a single company stock. That’s the highest score in the nation.
We scored only modest grades, however, on a question whether a shorter term mortgages reduce total mortgage interest costs. (They do.)
The most financially literate people in the country? Minnesotans. Residents of Colorado were second, followed by Utah and Idaho citizens.
The most illiterate financially? Mississippians. Residents of Arkansas, Louisiana, West Virginia and Kentucky also finished in the bottom five.