The 10 States Where People Save the Least

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10. Texas
> Pct. with savings account: 62.8%
> Pct. with no bank account: 12.8% (2nd highest)
> Median household income: $49,392 (25th highest)
> Average credit score: 637 (10th lowest)

Compared to most of the nation, Texans tend to save much less. Just 62.8% of households in the state have a savings account, the 10th lowest percentage among all states. In fact, 12.8% of Texas households lacked any bank account at all, more than any state except for Mississippi. And among those consumers who did have bank accounts, many had poor credit. In the third quarter of 2012, more than 65% of borrowers were considered by TransUnion to have subprime credit. In order to improve financial education in Texas, the state will begin teaching financial literacy to elementary school students in 2014.

Also Read: The 10 States with the Cheapest Gas

9. Alabama
> Pct. with savings account: 62.6%
> Pct. with no bank account: 10.2% (10th highest)
> Median household income: $41,415 (5th lowest)
> Average credit score: 625 (tied for 3rd lowest)

For many households in Alabama, finding the resources necessary to save money and maintain financial stability has been difficult. In 2011, the state had one of the nation’s lowest median household incomes, at just $41,415, as well as one of its highest poverty rates, at 19.0%. Additionally, residents were less likely than Americans elsewhere to hold a college degree or a high school diploma. As of 2011, just 82.7% of residents 25 and older had a high school diploma, and just 22.3% of such residents had a college degree, versus 85.9% and 28.5%, respectively, for the United States overall. In recent years many residents have been unable to pay their bills, and in 2011 Alabama had one of the nation’s highest bankruptcy rates at 6.2 cases per 1,000 people.

8. Georgia
> Pct. with savings account: 60.9%
> Pct. with no bank account: 11.5% (tied for 5th highest)
> Median household income: $46,007 (18th lowest)
> Average credit score: 643 (20th lowest)

During the recession, the values of many Georgians’ homes plummeted. Through the second quarter of 2012, home values had declined by nearly 33% over five years, the fifth highest drop in the U.S. during that time. The effects of the housing market crash left many residents without sound financial stability. As of 2010, 29.3% of households did not have the minimum assets that would allow them to live at the poverty rate for three months if they lost their regular income, among the worst percentages in the nation. Many residents also continue to suffer from damaged credit. As of the third quarter of 2012, Georgia was one of five states where more than 5% of consumers were more than 90 days past due on a debt payment.

7. Oklahoma
> Pct. with savings account: 60.0%
> Pct. with no bank account: 10.9% (tied for 8th highest)
> Median household income: $43,225 (10th lowest)
> Average credit score: 633 (8th lowest)

While unemployment soared across the U.S., Oklahoma’s unemployment rate remained comparatively low. In December 2012, the state’s unemployment rate of 5.1% was the seventh lowest among all 50 states. But despite avoiding the worst of the Great Recession, many of the state’s households had no savings and the credit records of consumers in Oklahoma remained unhealthy. As of the third quarter of 2012, the state had one of the highest proportions of consumers with subprime credit.

6. Tennessee
> Pct. with savings account: 59.3%
> Pct. with no bank account: 10.9% (tied for 8th highest)
> Median household income: $41,693 (6th lowest)
> Average credit score: 636 (9th lowest)

In 2011, Tennessee had one of the nation’s highest bankruptcy rates, at 7.2 filings per 1,000 residents. Even households that were not bankrupt frequently struggled. The median household income in the state was nearly $9,000 lower than the national median in 2011. However, Tennessee did perform well in certain measures of financial responsibility. As of 2010, just 23% of households did not have the minimum assets that would allow them to live at the poverty level for three months if they lost their regular income, well below the 26% nationally. Although borrowers in Tennessee were no more likely to be more than 90 days past due on their debt than residents of the nation as a whole as of January 2013, the average credit score from TransUnion within the state was among the lowest in the nation.