A recent study conducted by WalletHub sheds light on the financial challenges facing residents of Savannah, Georgia.
According to the findings, Savannah ranks within the top 5% of cities characterized by subpar money management skills. WalletHub’s analysis revealed that the average credit score in Savannah stands at 677, slightly above the threshold for fair credit. However, concerning is the student-loan debt-to-income ratio, which sits at 56.76%, significantly higher than the recommended threshold of 10%.
Further scrutiny of the data unveils concerning figures, such as the mortgage debt-to-income ratio of 413.61%, well beyond the advised threshold of 35%, and a car-loan debt-to-income ratio of 56.76%, exceeding the recommended limit of 40%.
The study also highlights a pattern of delayed payments, with Savannah residents averaging 4.03 late payments, indicating difficulties in meeting financial obligations.
Rosabeth Kanter, a professor at Harvard Business School, identifies a common pitfall: the failure to adhere to budgetary plans. “The most common mistake is making a budget and then not following through with it,” she notes. Kanter underscores the challenge lies not in creating a budget but in exercising the necessary discipline to adhere to it.
Beyond the confines of Savannah, Americans nationwide grapple with financial insecurity, exacerbated by factors like inflation. A staggering 35% of the population acknowledges inflation as a significant setback, while 44% express a lack of confidence in covering emergency expenses. Alarmingly, 2 in 5 Americans would struggle to access $5,000 to save a loved one’s life.
In light of these challenges, there is growing advocacy for integrating financial literacy education into school curricula. Sharon Lassar, Ph.D., a professor and director of the School of Accountancy at the University of Denver, emphasizes the importance of equipping students with financial skills. “While I believe schools should tailor their curriculum to meet community needs,” she states, “providing financial literacy education would benefit both students and their families, fostering informed financial decision-making.”
