25 Cities Where Residents Are Notoriously Bad Budgeters, and It’s Hurting Their Wallets
With costs seemingly going up everywhere one turns, it can be hard for some Americans to keep a balanced budget. Whether it’s increased mortgage interest rates or how a normal trip to the grocery store costs more than it used to, budgeting is arguably more important than ever.
A WalletHub study shows that Americans in some cities are better at balancing their budgets than others. Of course, plenty of good budgeters live in cities where bad budgeters reside, but the data is revealing nonetheless.
Hang tight, for we’re about to reveal the 25 cities with the most notoriously bad budgeters. Are you living in one of the cities that made the list?
Where Bad Budgeters Live
To determine their bad budgeter ranking, WalletHub compared 182 U.S. cities against various metrics, including bankruptcy rates and average credit scores. They also factored in how much money residents have in savings. That said, they excluded statistics from smaller cities in the surrounding metro areas of each individual city.
It’s worth noting that cities where a higher-than-average rate of bad budgeters live don’t always coincide with expensive living. For example, when it comes to overall affordability, South Bend, Indiana, Brownsville, Texas, and Evansville, Indiana all rank first in the U.S.
The following cities have the highest rates of bad budgeters. We’ve ordered this list based on WalletHub’s “total score” ranking, where lower numbers equate to high concentrations of residents struggling with budgeting. For context, we’ve also included data on the three primary ranking factors WalletHub considered, with the numbers corresponding to the overall city ranking (1 is the best and 182 is the worst).
Trouble in the Making
In terms of the worst budgeters in the U.S., residents in Jackson, Mississippi, come in first, according to WalletHub. This may be due to many issues the city has dealt with recently. It’s been reported that 23% of Jackson residents fall below the poverty line. Not helping things is the city’s troubles recently with natural disasters and a water crisis amid a declining infrastructure.
Jackson’s historic Farish Street District, which was once a thriving center for businesses like clubs, theaters, and restaurants, went through economic turbulence over several decades. But starting in 2023, thanks to community efforts, this historic part of Jackson is being revitalized. The hope is it’ll bring in money to local businesses.
Southern States Rank Low
Cities in Mississippi, Alabama, and Louisiana all hold the top five spots on WalletHub’s worst budgeters ranking. Alabama, in particular, is ranked near the bottom of a few state-focused lists, including for quality of life, available workforce, and business friendliness.
Along similar lines, Louisiana has the unfortunate distinction of being ranked at the very bottom of U.S. News’ “best states” list. The data takes into account the quality of each state’s health care, education, and public safety. Utah, on the other hand, ranked first on the same list.
Cities With the Best Budgeters
On the opposite end of things, Seattle came in first place in WalletHub’s budgeter study. It’s a good thing many Seattleites are good budgeters, given that housing expenses in Seattle are 111% higher than the national average. Meanwhile, the price of utilities is 6% above the national average.
Honolulu and Boston round out the top three cities where Americans are the best at budgeting. Honolulu also holds the distinction of being the happiest city in the U.S.
25 Cheapest Places To Live in America
Are you in the market for a home but are tired of high housing prices where you’re looking? If your job allows you to be location-independent, these are the most economical places to live in the US that just might be worth moving to.
25 Cheapest Places to Live in America
How Much Money It Takes To Be in the Top 10%
Whether you dream of being in the top 10% or think you might already be there, one thing is certain: The income a household makes to be in the top 10% club varies by state. Here’s how much you need to make to have a higher income than 90% of Americans.
