Iowa’s citizens might outperform those in other states when it comes to financial literacy, but a majority still live paycheck to paycheck, don’t comparison shop for credit cards, and lack savings for emergencies.
A study conducted last year by the FINRA Investor Education Foundation shows that in Iowa:
* 53% live paycheck to paycheck, compared to 55% nationally,
* 61% do not have a rainy day fund, compared to 60% nationally,
* 25% have sought high-cost, non-bank borrowing (payday loan, advance on tax refund), compared to 24% nationally,
64% did not comparison shop for credit cards, compared to 62 % nationally.
“This study highlights how important improving financial education is for Americans, especially during times of financial insecurity,” said FINRA Foundation Chairman Richard Ketchum. “While the current economic conditions can exacerbate the consequences of poor financial decisions, some states are still well ahead of others.”
To see findings from other states, check here