WASHINGTON — The FINRA Investor Education Foundation (FINRA Foundation) today launched a dynamic interactive Web resource to display the results of America's first State-by-State Financial Capability Survey, which was also released today. The new website, www.usfinancialcapability.org, displays a clickable map of the United States and allows the public, policymakers and researchers to delve into and compare the financial capabilities of Americans in every state and across geographic regions. The State-by-State Financial Capability Survey, which surveyed more than 28,000 respondents, was developed in consultation with the U.S. Department of the Treasury and the President's Advisory Council on Financial Literacy.
The state-by-state survey found a significant disparity in financial capability across state lines and demographic groups:
"This study highlights how important improving financial education is for Americans, especially during times of financial insecurity," said FINRA Foundation Chairman Rick Ketchum. "While the current economic conditions can exacerbate the consequences of poor financial decisions, some states are still well ahead of others."
The state-by-state survey echoed several of the findings of a smaller-scale national survey released in 2009, finding:
Findings released today, along with findings from a survey of military members that was released in October 2010, complement data from the National Financial Capability Study, which was released in late 2009. The new data will help guide FINRA Foundation financial education initiatives across the country by giving insight into the regional, age and gender variations in how Americans save, borrow and plan for their future. The findings will be especially useful in informing FINRA Foundation-funded community-based organizations about the financial education needs of different demographics in their communities.
"The extensive and multi-dimensional information allows policymakers and researchers to look at individual financial behavior from various angles, and the state-specific data can be used to tailor new programs and policies to promote greater financial capability," Ketchum said.
The findings emphasize the need for Americans to take greater charge of their financial well-being by forecasting future financial needs, navigating increasingly complex financial markets and managing risk. The state-by-state results highlight how many Americans are disadvantaged by their lack of financial capability, and break down financial decisions and literacy by gender, age bracket and region.
The study was developed in consultation with the U.S. Department of the Treasury and the President's Advisory Council on Financial Literacy, and represents an unprecedented collection of data on financial behaviors across all 50 states.
The data were collected through an online survey of 28,146 respondents (approximately 500 per state, plus D.C.), over a five-month period, June – October 2009. Within each state, data were weighted to match 2008 American Community Survey (ACS) distributions on age category by gender, ethnicity and education. Additional information on the ACS is available at www.census.gov/acs. All data in the surveys are self-reported by the respondents themselves.
The FINRA Investor Education Foundation supports innovative research and educational projects that give underserved Americans the knowledge, skills and tools necessary for financial success throughout life. For details about grant programs and other FINRA Foundation initiatives, visit www.finrafoundation.org.