The economic struggles we’ve endured in recent years have placed considerable emphasis on both the importance of budgeting and the difficulties of doing so. In fact, a recent Wallethub survey found that 69% of Americans with a budget say rising costs are their biggest budgeting challenge.
In the interest of giving the most responsible consumers their just due while putting everyone else on notice, WalletHub searched for the best and worst budgeters in the United States. We did so by examining 12 key metrics, ranging from the average credit score to debt-to-income ratios to foreclosure rates.
Cassandra Happe, WalletHub Analyst
Main Findings
Cities with Best & Worst Budgeters
Overall Rank | City | Total Score | Spending & Debt Rank | Credit Rank | Savings Rank |
---|---|---|---|---|---|
1 | Seattle, WA | 81.14 | 1 | 3 | 13 |
2 | Honolulu, HI | 77.92 | 5 | 69 | 1 |
3 | Boston, MA | 76.60 | 6 | 16 | 9 |
4 | Fremont, CA | 75.73 | 3 | 18 | 37 |
5 | San Francisco, CA | 75.69 | 2 | 23 | 37 |
6 | Madison, WI | 73.47 | 8 | 4 | 56 |
7 | San Diego, CA | 73.27 | 14 | 41 | 3 |
8 | Vancouver, WA | 73.23 | 16 | 12 | 7 |
9 | Minneapolis, MN | 72.60 | 13 | 9 | 19 |
10 | Huntington Beach, CA | 72.59 | 7 | 20 | 47 |
11 | Irvine, CA | 72.11 | 10 | 20 | 47 |
12 | Nashua, NH | 71.40 | 15 | 15 | 24 |
13 | Pearl City, HI | 71.19 | 35 | 108 | 1 |
14 | Spokane, WA | 70.90 | 12 | 26 | 23 |
15 | South Burlington, VT | 70.85 | 33 | 1 | 29 |
16 | St. Paul, MN | 70.84 | 27 | 14 | 19 |
17 | Burlington, VT | 70.50 | 23 | 8 | 29 |
18 | Tacoma, WA | 70.14 | 26 | 46 | 13 |
19 | Portland, OR | 69.57 | 20 | 7 | 59 |
20 | Portland, ME | 69.55 | 17 | 5 | 73 |
21 | Denver, CO | 69.38 | 11 | 22 | 75 |
22 | Salt Lake City, UT | 69.29 | 24 | 6 | 60 |
23 | Manchester, NH | 69.18 | 28 | 28 | 24 |
24 | Worcester, MA | 69.01 | 29 | 49 | 21 |
25 | Juneau, AK | 68.96 | 9 | 40 | 126 |
26 | Oceanside, CA | 68.42 | 50 | 54 | 3 |
27 | Santa Rosa, CA | 68.35 | 22 | 41 | 31 |
28 | Boise, ID | 67.87 | 18 | 2 | 119 |
29 | Colorado Springs, CO | 67.75 | 31 | 29 | 27 |
30 | Fargo, ND | 67.68 | 19 | 39 | 72 |
31 | Santa Clarita, CA | 67.10 | 40 | 24 | 47 |
32 | Chula Vista, CA | 66.76 | 61 | 63 | 3 |
33 | Anaheim, CA | 66.71 | 32 | 61 | 47 |
34 | Sioux Falls, SD | 66.51 | 49 | 27 | 28 |
35 | Oakland, CA | 65.98 | 38 | 67 | 37 |
36 | Bismarck, ND | 65.96 | 25 | 32 | 102 |
37 | Columbia, MD | 65.95 | 21 | 59 | 82 |
38 | Warwick, RI | 65.64 | 36 | 13 | 86 |
39 | Washington, DC | 65.51 | 48 | 86 | 22 |
40 | Long Beach, CA | 65.02 | 41 | 79 | 47 |
41 | Aurora, CO | 64.94 | 42 | 34 | 75 |
42 | Sacramento, CA | 64.77 | 53 | 98 | 17 |
43 | Santa Ana, CA | 64.68 | 46 | 65 | 47 |
44 | San Jose, CA | 64.52 | 4 | 37 | 162 |
45 | Garden Grove, CA | 64.26 | 57 | 45 | 47 |
46 | Omaha, NE | 63.85 | 56 | 17 | 74 |
47 | Anchorage, AK | 63.79 | 30 | 56 | 126 |
48 | Milwaukee, WI | 63.75 | 84 | 48 | 12 |
49 | Glendale, CA | 63.64 | 69 | 36 | 47 |
50 | Providence, RI | 63.60 | 43 | 47 | 86 |
51 | Rapid City, SD | 63.53 | 37 | 38 | 131 |
52 | Rancho Cucamonga, CA | 63.48 | 51 | 57 | 66 |
53 | Los Angeles, CA | 63.42 | 55 | 71 | 47 |
54 | Modesto, CA | 63.36 | 45 | 103 | 31 |
55 | Austin, TX | 62.79 | 74 | 90 | 18 |
56 | Jersey City, NJ | 62.79 | 34 | 109 | 84 |
57 | New York, NY | 62.67 | 39 | 110 | 78 |
58 | Lincoln, NE | 61.95 | 52 | 11 | 137 |
59 | Oxnard, CA | 61.58 | 62 | 75 | 31 |
60 | Riverside, CA | 61.48 | 68 | 71 | 66 |
61 | Richmond, VA | 61.23 | 63 | 51 | 80 |
62 | Fresno, CA | 60.89 | 65 | 92 | 31 |
63 | Billings, MT | 60.72 | 44 | 52 | 132 |
64 | Bakersfield, CA | 60.69 | 64 | 104 | 31 |
65 | Wilmington, DE | 60.59 | 97 | 136 | 8 |
66 | Missoula, MT | 60.55 | 47 | 50 | 145 |
67 | Scottsdale, AZ | 60.32 | 54 | 70 | 111 |
68 | Des Moines, IA | 60.09 | 58 | 43 | 133 |
69 | Cedar Rapids, IA | 59.88 | 70 | 25 | 133 |
70 | West Valley City, UT | 59.57 | 113 | 31 | 60 |
71 | Ontario, CA | 59.43 | 81 | 88 | 66 |
72 | Virginia Beach, VA | 59.42 | 78 | 33 | 107 |
73 | Stockton, CA | 59.36 | 77 | 101 | 31 |
74 | Pittsburgh, PA | 59.33 | 79 | 78 | 77 |
75 | Fontana, CA | 59.22 | 87 | 81 | 66 |
76 | Yonkers, NY | 59.05 | 59 | 153 | 78 |
77 | Plano, TX | 58.96 | 99 | 90 | 40 |
78 | Chandler, AZ | 58.90 | 72 | 68 | 111 |
79 | St. Petersburg, FL | 58.76 | 106 | 134 | 15 |
80 | Salem, OR | 58.73 | 73 | 30 | 135 |
81 | Nampa, ID | 58.61 | 90 | 10 | 119 |
82 | Buffalo, NY | 58.28 | 66 | 164 | 57 |
83 | Gilbert, AZ | 58.25 | 80 | 55 | 111 |
84 | Overland Park, KS | 58.24 | 60 | 19 | 142 |
85 | New Haven, CT | 58.18 | 92 | 124 | 10 |
86 | Moreno Valley, CA | 58.05 | 95 | 97 | 66 |
87 | Chesapeake, VA | 57.68 | 94 | 35 | 107 |
88 | Reno, NV | 57.65 | 67 | 112 | 124 |
89 | Rochester, NY | 57.54 | 76 | 149 | 57 |
90 | Peoria, AZ | 56.32 | 96 | 73 | 111 |
91 | Chicago, IL | 56.05 | 91 | 83 | 121 |
92 | Irving, TX | 55.83 | 116 | 139 | 40 |
93 | Tampa, FL | 55.57 | 137 | 147 | 15 |
94 | Charlotte, NC | 55.56 | 98 | 94 | 106 |
95 | Wichita, KS | 55.31 | 71 | 87 | 147 |
96 | Casper, WY | 55.29 | 82 | 58 | 153 |
97 | Norfolk, VA | 55.28 | 109 | 60 | 107 |
98 | Cheyenne, WY | 55.25 | 86 | 53 | 153 |
99 | Mesa, AZ | 55.12 | 100 | 100 | 111 |
100 | Grand Rapids, MI | 55.02 | 83 | 82 | 145 |
101 | Dover, DE | 55.00 | 112 | 168 | 6 |
102 | Dallas, TX | 54.85 | 125 | 138 | 40 |
103 | Charleston, SC | 54.61 | 89 | 96 | 138 |
104 | St. Louis, MO | 54.56 | 103 | 76 | 125 |
105 | Henderson, NV | 54.41 | 108 | 105 | 103 |
106 | Port St. Lucie, FL | 54.24 | 101 | 125 | 98 |
107 | Aurora, IL | 54.15 | 115 | 62 | 121 |
108 | Pembroke Pines, FL | 54.12 | 143 | 102 | 62 |
109 | Durham, NC | 54.08 | 75 | 80 | 165 |
110 | Newport News, VA | 53.99 | 119 | 66 | 107 |
111 | Atlanta, GA | 53.92 | 110 | 133 | 88 |
112 | Kansas City, MO | 53.53 | 88 | 106 | 140 |
113 | Baltimore, MD | 53.50 | 120 | 127 | 82 |
114 | Tallahassee, FL | 53.35 | 104 | 129 | 98 |
115 | Bridgeport, CT | 53.35 | 134 | 126 | 10 |
116 | Tempe, AZ | 53.32 | 117 | 95 | 111 |
117 | San Bernardino, CA | 53.04 | 132 | 135 | 66 |
118 | Fort Lauderdale, FL | 53.02 | 140 | 129 | 62 |
119 | Raleigh, NC | 53.02 | 85 | 77 | 165 |
120 | Knoxville, TN | 52.92 | 128 | 64 | 123 |
121 | Tucson, AZ | 52.91 | 107 | 99 | 130 |
122 | Orlando, FL | 52.83 | 153 | 144 | 26 |
123 | Fort Worth, TX | 52.63 | 144 | 159 | 40 |
124 | Philadelphia, PA | 52.35 | 124 | 128 | 97 |
125 | Nashville, TN | 52.20 | 105 | 74 | 143 |
126 | Arlington, TX | 52.17 | 148 | 146 | 40 |
127 | Phoenix, AZ | 51.85 | 127 | 117 | 111 |
128 | Springfield, MO | 51.82 | 102 | 122 | 150 |
129 | Miami, FL | 51.38 | 149 | 144 | 62 |
130 | Glendale, AZ | 51.28 | 133 | 111 | 111 |
131 | Garland, TX | 51.18 | 158 | 142 | 40 |
132 | Columbus, OH | 51.15 | 147 | 84 | 95 |
133 | Lewiston, ME | 50.84 | 126 | 44 | 157 |
134 | Newark, NJ | 50.81 | 131 | 167 | 84 |
135 | Amarillo, TX | 50.59 | 122 | 163 | 89 |
136 | Cincinnati, OH | 50.54 | 136 | 84 | 128 |
137 | Fort Wayne, IN | 50.44 | 114 | 89 | 161 |
138 | Cape Coral, FL | 50.33 | 138 | 113 | 98 |
139 | Albuquerque, NM | 50.24 | 111 | 120 | 148 |
140 | Charleston, WV | 50.14 | 93 | 158 | 152 |
141 | Las Vegas, NV | 49.75 | 141 | 152 | 103 |
142 | Grand Prairie, TX | 49.66 | 164 | 160 | 40 |
143 | Hialeah, FL | 48.65 | 166 | 148 | 62 |
144 | San Antonio, TX | 48.29 | 160 | 157 | 81 |
145 | Lubbock, TX | 47.91 | 145 | 160 | 89 |
146 | Winston-Salem, NC | 47.42 | 118 | 137 | 165 |
147 | Houston, TX | 47.15 | 146 | 143 | 136 |
148 | Corpus Christi, TX | 46.89 | 150 | 166 | 89 |
149 | Jacksonville, FL | 46.57 | 156 | 150 | 98 |
150 | Chattanooga, TN | 46.47 | 123 | 93 | 179 |
151 | Lexington-Fayette, KY | 46.43 | 130 | 107 | 170 |
152 | Las Cruces, NM | 46.12 | 129 | 118 | 171 |
153 | Huntsville, AL | 46.07 | 121 | 156 | 173 |
154 | Greensboro, NC | 45.99 | 139 | 115 | 165 |
155 | Laredo, TX | 45.24 | 162 | 162 | 89 |
156 | Indianapolis, IN | 45.13 | 142 | 132 | 155 |
157 | North Las Vegas, NV | 44.72 | 174 | 155 | 103 |
158 | Louisville, KY | 44.00 | 172 | 123 | 129 |
159 | Brownsville, TX | 43.88 | 169 | 140 | 89 |
160 | Cleveland, OH | 43.81 | 179 | 121 | 95 |
161 | Little Rock, AR | 43.56 | 161 | 171 | 141 |
162 | Oklahoma City, OK | 42.73 | 151 | 165 | 160 |
163 | El Paso, TX | 42.29 | 177 | 140 | 89 |
164 | Columbus, GA | 42.23 | 159 | 169 | 157 |
165 | Akron, OH | 41.96 | 165 | 119 | 163 |
166 | Fayetteville, NC | 41.67 | 163 | 131 | 165 |
167 | Baton Rouge, LA | 41.54 | 157 | 179 | 151 |
168 | Birmingham, AL | 41.37 | 168 | 176 | 144 |
169 | Detroit, MI | 41.30 | 167 | 175 | 149 |
170 | Fort Smith, AR | 41.28 | 135 | 177 | 181 |
171 | New Orleans, LA | 40.87 | 155 | 178 | 156 |
172 | Columbia, SC | 40.85 | 175 | 151 | 138 |
173 | Toledo, OH | 40.53 | 171 | 114 | 163 |
174 | Huntington, WV | 40.14 | 154 | 154 | 172 |
175 | Tulsa, OK | 39.20 | 152 | 170 | 178 |
176 | Augusta, GA | 38.32 | 176 | 173 | 157 |
177 | Memphis, TN | 37.02 | 173 | 116 | 176 |
178 | Shreveport, LA | 35.49 | 170 | 180 | 177 |
179 | Mobile, AL | 34.33 | 180 | 174 | 173 |
180 | Montgomery, AL | 32.16 | 181 | 172 | 173 |
181 | Gulfport, MS | 30.41 | 178 | 181 | 182 |
182 | Jackson, MS | 26.63 | 182 | 182 | 180 |
Note: With the exception of “Total Score,” the columns in the table above depict the relative rank of each city, where a rank of 1 represents the best conditions for that category.
- Highest
- 1. South Burlington, VT
- 2. Overland Park, KS
- 3. Fremont, CA
- T-4. Irvine, CA
- T-4. Huntington Beach, CA
- Lowest
- 178. Gulfport, MS
- 179. Newark, NJ
- 180. Jackson, MS
- 181. San Bernardino, CA
- 182. Detroit, MI
- Lowest
- 1. Fremont, CA
- 2. San Francisco, CA
- 3. Seattle, WA
- 4. San Jose, CA
- 5. Washington, DC
- Highest
- 178. Las Cruces, NM
- 179. El Paso, TX
- 180. Miami, FL
- 181. Brownsville, TX
- 182. Hialeah, FL
- Lowest
- 1. Billings, MT
- 2. Madison, WI
- 3. Wichita, KS
- 4. Portland, ME
- 5. Nashville, TN
- Highest
- 170. Cleveland, OH
- 171. Wilmington, DE
- 172. North Las Vegas, NV
- 173. Bridgeport, CT
- 174. Columbia, SC
- Lowest
- 1. Burlington, VT
- 2. Portland, ME
- 3. Madison, WI
- 4. South Burlington, VT
- 5. Boston, MA
- Highest
- 178. Newark, NJ
- 179. Grand Prairie, TX
- 180. El Paso, TX
- 181. Fayetteville, NC
- 182. San Bernardino, CA
In-Depth Look at the Cities With the Best Budgeters
Seattle, WA
Seattle is the city with the best budgeters in the U.S., with residents having some of the lowest debt-to-income ratios in the U.S. for credit card debt, student loan debt and car loan debt. The average credit card debt is around 9% of the average median yearly income in Seattle, while the average student loan debt is 51% and the average car loan debt is 24%.
Seattle residents also have one of the lowest credit utilization ratios in the country, with residents using 34.1% of their available credit, on average. This is very close to 30%, which is the maximum that we recommend using. For context, though, no city in this study had a utilization ratio below 32%, and some had as high as nearly 60%.
Another way people in Seattle show their ability to stick to a budget is the fact that they have one of the lowest mortgage delinquency rates in the country.
Honolulu, HI
Honolulu has the second-best budgeters in the country, in large part because typical non-housing expenses in the city only make up close to 31% of the median income, while housing expenses make up another 1.5%. These are the lowest ratios in the country, which means that residents are keeping their expenses reasonable and are able to put more money toward saving and investing.
Honolulu also has the lowest share of residents who pay only the minimum on their credit card each month, at 25.6%, which means that most people are paying more than they’re required to. This helps reduce or eliminate interest on credit card balances and proves that people generally are not spending beyond their means.
Boston, MA
Boston has the country’s third-best budgeters. The budgeting prowess of Bostonians is demonstrated by the fact that the city has the second-lowest personal bankruptcy rate in the country, which means residents are able to keep their debts from getting out of control.
In addition, Boston has a relatively high share of residents who have emergency or rainy-day funds, at nearly 60%. This gives residents something to fall back on if they are forced to go over-budget one month.
To top things off, Bostonians have one of the lowest average credit utilization ratios in the country, at 33.8%, which shows responsibility and indicates that residents aren’t desperate to borrow money.
5 Tips for Better Budgeting
- Create an Emergency Fund – Set aside a bit every month with the ultimate goal of having at least three to six months’ worth of expenses in reserve in case of an extended income disruption. Even if your budget doesn’t leave a ton of room for this, try to put at least a little bit of money aside each pay period.
- Rank Your Expenses – Budgeting doesn’t require you to give up all of your hobbies or creature comforts. It simply means prioritizing the most important expenses over less essential ones. By ranking your expenses in order of importance, you’ll be able to keep what you value most and avoid all the headaches that come with unnecessary debt.
- Use the Island Approach – Separate your debt from your everyday expenses. The Island Approach is a strategy that involves isolating different types of transactions to different credit cards for the best possible combination of terms. For instance, you might consider using a rewards card for daily expenses (which you’d pay off in full every month) and a 0% balance transfer card to lower the cost of existing debt.
- Use the “Avalanche” Method for Debt Payoff – In constructing your budget, make sure to account for monthly debt payments. When distributing those payments, you should pay the minimum on everything but the balance with the highest interest rate, to which you should allocate the rest of your monthly allotment until that balance is gone. Repeat that process with the balance that has the second highest interest rate until you’re completely debt-free. This will ultimately save you the most money on interest and get you out of debt in the quickest time possible.
- Don’t Neglect Any Part of Your Budget – When making a budget, bills and other essential expenses should naturally come first. In addition, it’s important to try to put at least a small amount of money toward saving and/or investing each month, so that you can build your wealth and live more comfortably in the future. At the same time, you shouldn't go to the extreme and save everything while spending nothing on yourself outside of the essentials, as that won’t be good for your mental health.
Ask the Experts
Being a good budgeter isn’t just about staying out of debt. The best budgeters make the most of what they have by adhering to a well-crafted spending plan that accounts for the unexpected. To expand the discussion, we’ve asked a panel of experts to share their wisdom and insight on the subject. Click on the experts’ profiles to read their bios and responses to the following key questions:
- What tips do you have for consumers looking to make a budget and stick to it?
- What is the biggest obstacle for consumers trying to stay on budget?
- What tips do you have for consumers to get out of debt and stay debt free?
- How should parents teach children about the importance of budgeting?
Ask the Experts
Methodology
In order to determine the cities with the best and worst budgeters, WalletHub compared 182 U.S. cities — including the 150 most populated U.S. cities, plus at least two of the most populated cities in each state — across three key dimensions: 1) Spending and Debt, 2) Credit and 3) Savings.
We evaluated those categories using 12 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the best budgeting skills.
Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample. Our sample considers only the city proper in each case and excludes cities in the surrounding metro area.
Spending & Debt – Total Points: 50
- Total Non-Mortgage Debt as a Percentage of Median Income: Full Weight (~9.09 Points)
- Bankruptcy Rate: Half Weight (~4.55 Points)
- Foreclosure Rate: Full Weight (~9.09 Points)
- Housing Expenses as a Percentage of Median Home Price: Half Weight (~4.55 Points)
- Total Non-Housing Expenses Relative to Average Income: Half Weight (~4.55 Points)
- Credit Utilization (%): Full Weight (~9.09 Points)
- Percentage of the Population Spending More Than They Make: Half Weight (~4.55 Points)
- Percentage of the Population Paying Only the Minimum on Their Credit Cards: Half Weight (~4.55 Points)
Credit – Total Points: 25
- Average Credit Score: Full Weight (~16.67 Points)
- Delinquency Rate (Mortgages, Auto Loans, Student Loans and Credit Cards): Half Weight (~8.33 Points)
Savings – Total Points: 25
- Rainy Day Funds: Half Weight (~12.50 Points)
- Percentage of Unbanked Households: Half Weight (~12.50 Points)
Sources: Data used to create this ranking were collected as of March 20, 2024 from the U.S. Census Bureau, Administrative Office of the U.S. Courts, Council for Community and Economic Research, ATTOM, a property data provider, U.S. Bureau of Economic Analysis, Federal Reserve Bank of New York, FINRA Investor Education Foundation, Federal Deposit Insurance Corporation and WalletHub research.
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