JACKSON, Miss. (WJTV) – Financial literacy is becoming more crucial, yet many in Mississippi still lack essential money management skills. A WalletHub survey reveals that Mississippians are the 7th least financially literate in the United States. With the nation’s lowest median household income and high living costs, residents find themselves with minimal disposable income, leading to risky financial behaviors.
Mississippi ranks poorly in several key areas: it has the second-lowest rate of residents with emergency savings and the lowest rate of sustainable spending habits. Additionally, the state has the highest percentage of unbanked households and the second-highest rate of borrowing from non-bank lenders. A WalletHub analysis also found that Jacksonians struggle significantly with money management, ranking the worst among all capital cities and the second worst among midsize cities.
Financial Challenges in Mississippi’s Cities
In cities like Ridgeland and Canton, residents face even more significant financial challenges than those in Jackson. While these cities boast higher median credit scores, they also see higher levels of credit card, mortgage, and student loan debt relative to income. Canton, in particular, has the highest student loan debt relative to income in the entire country.
Factors Affecting Financial Literacy Rankings
WalletHub assessed financial literacy using various factors:
Financial Planning & Habits (25 points):
- Median credit score
- Adults spending more than they earn
- Adults with rainy-day funds
- Adults saving for children’s education
- Confidence in long-term financial goals
- Households with a budget
- Unbanked households
- Adults borrowing from non-bank lenders
- Adults paying only minimum on credit cards
- Adults comparing credit cards before applying
Financial Knowledge & Education (25 points):
- High-school financial literacy grade
- Public high-school graduation rate
- Students required to take a personal finance course
- Adults attending financial education classes or counseling
- Adults using online financial services
- Adults with at least a bachelor’s degree
WalletHub’s ‘WalletLiteracy Test’ Score (50 points): WalletHub gathered 42,405 responses nationwide for its financial literacy test, with Mississippi ranking 18th in overall score.
The Future of Financial Literacy in Mississippi
Changes at the state level may improve Mississippi’s financial literacy over time. According to the Mississippi Department of Education, since 2022, every high school student must take and pass a College and Career Readiness course, which includes financial literacy instruction. This initiative aims to provide future generations with the financial knowledge and skills necessary for effective economic management.