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When young people complain they never learned in school how to balance a checking account, handle debt, invest in the stock market and maintain a savings account, many of us roll our eyes. But they might be on to something, as a new report by Smartest Dollar indicates the states in our region are among the least financially savvy in the country.
In fact, West Virginia ranks 37th, Pennsylvania stands 39th and Ohio is 45th.
Knowledge and training are everywhere, but it seems the more information is available, the less people know.
"According to data collected by the FINRA Foundation, the number of U.S. adults who possess basic financial knowledge has been steadily declining, despite increased access to financial information online," Smartest Dollar reports.
"In 2009, 79 percent of U.S. adults had basic interest rate knowledge, while 12 years later in 2021, that percentage had declined to slightly above 70 percent."
In Ohio, the share of adults with high financial literacy is 40.5 percent; the share of adults with basic interest rate knowledge is 67.8 percent; the share of adults with basic inflation knowledge is 49 percent; and share of adults with basic investment risk knowledge is 41.7 percent.
West Virginia's numbers show a high financial literacy rate of 43.9 percent; the share of adults with basic interest rate knowledge of 69.7 percent; the share of adults with basic inflation knowledge of 53.8 percent; and a share of adults with basic investment risk knowledge of 33.8 percent.
And, in Pennsylvania, the share of adults with high financial literacy is 43.2 percent; the share of adults with basic interest rate knowledge is 68.5 percent; the share of adults with basic inflation knowledge is 47.9 percent; and share of adults with basic investment risk knowledge is 37.1 percent.
Wyoming tops the list, while Louisiana is at the bottom.
Financial literacy does increase with age and education level. How many of us wish we'd had that knowledge when we were younger, and perhaps even still working through our education?
The report shows across the country approximately 70 percent of adults say they never received any formal financial education.
Maybe Ohio is on the right track: A law that took effect last year should make a difference, as all students must now earn one-half credit of financial literacy as a graduation requirement. Given the hope Ohioans have for an expanded and diversified economy in our near future, it is even more important to prepare young people with a solid foundation in financial literacy.
It is a shame that our region has so much room for improvement, but surely lawmakers and educators understand the work will be worth every penny.