Mississippi Dead Last in Financial SecurityBy Paul Boger | Published 17 Jun 2014 08:30am |
Mississippi ranks dead last in the nation when it comes to financial safety. That's according to a report filed by Wallet-hub dot com -- an online financial watch-dog community. But there are ways Mississippians can make their finances more secure.
More than 15 percent of Mississippi households have no bank account of any kind. That's nearly double the national average. Odysseas Papadimitriou is with Wallet-hub dot com. He says it's one of the traits that makes Mississippi the least financially secure state in the country.
"We looked at the percentage of people who spent more than they make, and Mississippi ranks number 49 in that regard." says Papadimitriou. "We looked at the percentage of people with a rainy day fund, and Mississippi ranks 49 on that as well. When we looked at the percentage of people only paying the minimum on their credit card; it ranked number 48 in the country. Those were some of the matrix we looked at and you can see that Mississippi ranked in the bottom five."
Papadamitriou believes it's possible to reverse Mississippi's financial trends. He says basic financial education can go a long way to help people better understand financial obligations.
"I think a lot of these habits start at an early age." Papadimitriou says. "These things are much more effective to be taught at an early age. There was a survey that showed that parents were more comfortable talking to their kids about sex then they are talking to them about money. I think that needs to change."
Sherry Rainey with Clear-Point Credit Counseling however, says simply living within your means can help keep you strong financially.
"That is the golden rule to budgeting." says Rainey. "It's something that we can't stress enough. Really just make wiser spending decisions. Making sure you determine your needs as opposed to your wants, and then of course saving money that you ordinarily would have spent on discretionary items that are not of such importance."
This is not the first time the financial security of Mississippians has been called into question. A 2012 report by Yale University found the state to be the most economically insecure.
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