Did a little fact finding recently. First I found a list of US states and how they rank for bankruptcy filings as of 12/31/2009. I’ll use the top 10 for this discussion. (source: American Bankruptcy Institute)
Then I found a list of how many US states have a lottery (Wikipedia). Then I found a list of the 25 most dangerous US cities (crime).
Of the top 10 bankruptcy filing states in The USA, all but two have a lottery. Of the top 10 bankruptcy filing states in The USA, 7 are listed in the 25 most dangerous cities in America.
Anyone who is smart enough can prove just about anything with statistics if they know how to argue like a sharp witted lawyer. And I think these simple statistics reveal a bit about the connection between financial literacy, risk taking, and crime.
Don’t get your panties in a wad and think I’m jumping to conclusions here. The state I live in, Tennessee, is ranked #2 in bankruptcy filings and has Memphis listed as the 13th most dangerous city in America. So I’m not pointing fingers here by any stretch of the imagination. This stuff is happening in my own back yard, and them some.
I want you to understand how important it is to become financially literate. The more ignorant you are about money matters, the more likely you are to handle your finances poorly. People who handle their finances poorly can certainly be at risk of bankruptcy. Maybe gambling (risk taking) would be more appealing. And maybe crime would be more appealing, who knows?.
There are, of course, exceptions to every rule. But the point is, I want you to think about how everything in your life is strongly connected to the way you think about money, behave with money, and act with money.
Get financially literate and experience financial freedom. The more you know the less likely you are to be taken advantage of by someone who knows more. With all that’s available for free on the internet, there’s no excuse to stay uneducated about your money matters. Get smarter, get wiser, get wealthier.
To Your Financial Freedom,
Greg Whitaker
© Greg Whitaker, 2011. All Rights Reserved
