STATEN ISLAND, N.Y. — Saving money is often at the top of most people’s New Year’s resolutions, but that may be more difficult to achieve depending on where you live.
Last month, online financial advisory site Moneywise released a new study ranking the easiest and hardest states to save money, as the economy rebounds from the coronavirus (COVID-19) pandemic and residents look to get back on sound financial ground.
“The U.S. economy is rebounding at a faster pace than initially anticipated, and inflation is also on the decline. This data provides a fascinating insight into the states that are most favorably positioned to capitalize on this turnaround,” said Kris Bruynson, vice president of marketing and product at Moneywise. “It considers the economic conditions within each state, their proficiency in financial management, and their interest in savings and investments to identify the states where people are likely to find it easiest to save money.”
The study analyzed seven key factors that impact a resident’s ability to save money across all 50 states to develop a comprehensive ranking of existing money-saving conditions.
Key indicators included average consumption as a percentage of personal income, household debt to income ratio, rate of homeownership, unemployment rates, personal bankruptcy rates, unbanked rates and average monthly Google searches for terms related to savings and investments.
In what may come as a surprise to many residents, New York ranked as the fifth-easiest state to save.
“A possible surprise is New York, one of the nation’s most expensive states, which ranks fifth with a score of 66.53 out of 100. Notably, the Empire State shares the lowest debt-to-income ratio of 0.40 with North Dakota and Kansas, a positive indicator of financial health,” wrote Chris Clark of Moneywise.
“In terms of financial awareness and interest, the state ranks high, recording the second-highest number of searches related to savings and investments, with an average of 1,603 searches per 100,000 residents,” Clark added.
The Northeast dominated the rankings of easiest states to save, with Vermont ranking first, followed by Maine, Delaware and Massachusetts, in that order.
On the other end of the spectrum, Mississippi ranked as the hardest state to save money, followed by Nevada, Tennessee, Louisiana and Idaho.
Financial experts from Moneywise offered tips on how residents can save more money in the coming year, including switching to a high-yield savings account, creating and sticking to a budget, cutting unnecessary expenses, setting savings goals, investing wisely and reducing energy costs.
“As the economic landscape shifts with cooling inflation, adapting your financial strategy is key. By re-evaluating your budget, focusing on high-interest debts, investing in personal growth, exploring better savings options, and planning for the future, you can maximize your savings and set yourself up for financial success,” Clark wrote.
