Saving money is the foundation of pretty much all financial advice. Fruitful savings can help consumers avoid debt, earn passive income and work toward financial goals like buying a house, not to mention having emergency funds available.
But most Americans, for various reasons, don’t have much saved — and the COVID-19 pandemic has certainly made this situation worse for some. In October 2020, 42% of consumers had less than $5,000 in emergency savings. Some of those reasons for low or nonexistent savings may include high housing costs or low and stagnant wages — both factors that may change for an individual if they moved to another state.
MagnifyMoney researchers examined U.S. Census Bureau and U.S. Bureau of Labor Statistics (BLS) data to create a scoring system to rank the best states for saving money based on seven metrics:
- Down payment-to-income ratios
- Housing costs as a percentage of income
- Homeownership rates among adults younger than 45
- Month-over-month job growth
- Year-over-year job growth
- Wage growth
- State unemployment rates
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Methodology
MagnifyMoney researchers analyzed data on seven metrics to find the best states to save money.
- Down payment-to-income ratio. This is 20% of the median home value (the typical amount needed for a down payment) divided by median annual earnings. This shows the number of years of income needed for a down payment. Data comes from the U.S. Census Bureau’s 2019 1-year American Community Survey.
- Housing costs as a percentage of income. This is median housing costs divided by median earnings. Data comes from the U.S. Census Bureau’s 2019 1-year American Community Survey.
- Homeownership rate for residents younger than 45. This measures the percentage of people younger than 45 who own their homes. Data comes from the U.S. Census Bureau’s 1-year 2019 American Community Survey.
- Month-over-month job growth. This shows recent job growth, covering one month from April 2021 to May 2021. Data comes from the U.S. Bureau of Labor Statistics.
- Year-over-year job growth. This shows job growth after the coronavirus pandemic began, covering one year from May 2020 to May 2021. Data comes from the U.S. Bureau of Labor Statistics.
- One-year wage growth. Data comes from the U.S. Census Bureau’s 2018 and 2019 1-year American Community Surveys.
- Unemployment rate. This covers May 2021. Data comes from the U.S. Bureau of Labor Statistics.
Analysts then ranked each state in each metric and found each state’s average ranking. Using this average ranking, researchers gave each state a final score. The state with the best average ranking received a 100, while the state with the worst average ranking received a 0.
Image Credit: DepositPhotos.com.
Factors that Influence Your Savings
The proliferation of remote work may be inspiring many folks to move to a cheaper or generally more desirable location, but MagnifyMoney senior director of content Ismat Mangla encourages those people to weigh all the factors.
“Will your company adjust your salary according to where you live?” Mangla asks. “If you have to leave this job, will there be other opportunities for you in your new area? Just make sure you’re going into a decision like that with a clear head and that you consider all the scenarios.”
Consumers struggling to save and unable to move to a more affordable area will need to be merciless about their budgets, Mangla says. She suggests a few steps you can take to build your savings:
- Minimize unnecessary spending. Take a look at your monthly spending and look for recurring expenses you might be able to downgrade. Things like ATM fees seem small here and there, but they could add up in savings if you switch to a bank with fewer fees.
- Make use of extra space. If your rent or mortgage payment is making it difficult to save, consider getting some help by renting out a room or finding a roommate. Sharing a bathroom might sound less than ideal, but it could be worth it if it helps you save for a bigger space.
- Seek professional advice. Staying on top of your budget and finding the best financial moves for your goals isn’t easy on your own, especially if you’re not a professional yourself. Consider hiring a financial advisor to help with those important financial decisions.
No matter your situation, make sure your savings are always growing by making regular deposits in a high-yield savings account. Even a few dollars a week can grow with interest, helping you build a financial safety net and work toward your goals.
Here are the states ranked from best to worst savers.
Image Credit: Deposit Photos.
51. Vermont
- Index score: 100
- Down payment-to-income ratio: 28
- Housing costs as a % of income: 36
- Homeownership rate (younger than 45): 12
- Job growth (April 2021 to May 2021): 4
- Job growth (May 2020 to May 2021): 12
- Wage growth: 3
- Unemployment rate: 2
Image Credit: DenisTangneyJr.
50. Minnesota
- Index score: 92.02
- Down payment-to-income ratio: 27
- Housing costs as a % of income: 25
- Homeownership rate (younger than 45): 1
- Job growth (April 2021 to May 2021): 9
- Job growth (May 2020 to May 2021): 16
- Wage growth: 20
- Unemployment rate: 12
Image Credit: JoeChristensen.
49. Kentucky
- Index score: 88.96
- Down payment-to-income ratio: 9
- Housing costs as a % of income: 5
- Homeownership rate (younger than 45): 20
- Job growth (April 2021 to May 2021): 14
- Job growth (May 2020 to May 2021): 11
- Wage growth: 37
- Unemployment rate: 19
Image Credit: Thomas Kelley.
48. Missouri
- Index score: 88.96
- Down payment-to-income ratio: 12
- Housing costs as a % of income: 9
- Homeownership rate (younger than 45): 18
- Job growth (April 2021 to May 2021): 20
- Job growth (May 2020 to May 2021): 32
- Wage growth: 7
- Unemployment rate: 17
Image Credit: eyecrave.
47. Iowa
- Index score: 86.5
- Down payment-to-income ratio: 4
- Housing costs as a % of income: 6
- Homeownership rate (younger than 45): 5
- Job growth (April 2021 to May 2021): 26
- Job growth (May 2020 to May 2021): 38
- Wage growth: 30
- Unemployment rate: 10
Image Credit: JoeChristensen.
46. Indiana
- Index score: 82.82
- Down payment-to-income ratio: 7
- Housing costs as a % of income: 12
- Homeownership rate (younger than 45): 10
- Job growth (April 2021 to May 2021): 26
- Job growth (May 2020 to May 2021): 18
- Wage growth: 40
- Unemployment rate: 12
Image Credit: f11photo.
45. Wisconsin
- Index score: 80.98
- Down payment-to-income ratio: 15
- Housing costs as a % of income: 15
- Homeownership rate (younger than 45): 15
- Job growth (April 2021 to May 2021): 26
- Job growth (May 2020 to May 2021): 20
- Wage growth: 27
- Unemployment rate: 10
Image Credit: FierceAbin.
44. Maine
- Index score: 79.75
- Down payment-to-income ratio: 22
- Housing costs as a % of income: 20
- Homeownership rate (younger than 45): 4
- Job growth (April 2021 to May 2021): 37
- Job growth (May 2020 to May 2021): 15
- Wage growth: 10
- Unemployment rate: 22
Image Credit: DepositPhotos.com.
43. Nebraska
- Index score: 76.69
- Down payment-to-income ratio: 10
- Housing costs as a % of income: 16
- Homeownership rate (younger than 45): 13
- Job growth (April 2021 to May 2021): 37
- Job growth (May 2020 to May 2021): 42
- Wage growth: 15
- Unemployment rate: 2
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42. New Hampshire
- Index score: 74.85
- Down payment-to-income ratio: 31
- Housing costs as a % of income: 40
- Homeownership rate (younger than 45): 9
- Job growth (April 2021 to May 2021): 34
- Job growth (May 2020 to May 2021): 5
- Wage growth: 18
- Unemployment rate: 1
Image Credit: DenisTangneyJr.
41. Michigan
- Index score: 74.23
- Down payment-to-income ratio: 13
- Housing costs as a % of income: 22
- Homeownership rate (younger than 45): 6
- Job growth (April 2021 to May 2021): 37
- Job growth (May 2020 to May 2021): 2
- Wage growth: 34
- Unemployment rate: 25
Image Credit: haveseen.
40. Kansas
- Index score: 73.62
- Down payment-to-income ratio: 8
- Housing costs as a % of income: 14
- Homeownership rate (younger than 45): 24
- Job growth (April 2021 to May 2021): 37
- Job growth (May 2020 to May 2021): 48
- Wage growth: 1
- Unemployment rate: 8
Image Credit: Michael Pham.
39. South Carolina
- Index score: 73.62
- Down payment-to-income ratio: 19
- Housing costs as a % of income: 23
- Homeownership rate (younger than 45): 14
- Job growth (April 2021 to May 2021): 20
- Job growth (May 2020 to May 2021): 24
- Wage growth: 19
- Unemployment rate: 21
Image Credit: SeanPavonePhoto.
38. Pennsylvania
- Index score: 71.78
- Down payment-to-income ratio: 14
- Housing costs as a % of income: 19
- Homeownership rate (younger than 45): 16
- Job growth (April 2021 to May 2021): 14
- Job growth (May 2020 to May 2021): 10
- Wage growth: 29
- Unemployment rate: 41
Image Credit: AppalachianViews.
37. West Virginia
- Index score: 69.33
- Down payment-to-income ratio: 1
- Housing costs as a % of income: 1
- Homeownership rate (younger than 45): 8
- Job growth (April 2021 to May 2021): 48
- Job growth (May 2020 to May 2021): 21
- Wage growth: 38
- Unemployment rate: 30
Image Credit: DepositPhotos.com.
36. Oklahoma
- Index score: 64.42
- Down payment-to-income ratio: 6
- Housing costs as a % of income: 8
- Homeownership rate (younger than 45): 31
- Job growth (April 2021 to May 2021): 26
- Job growth (May 2020 to May 2021): 49
- Wage growth: 23
- Unemployment rate: 12
Image Credit: DepositPhotos.com.
35. Alabama
- Index score: 62.58
- Down payment-to-income ratio: 11
- Housing costs as a % of income: 7
- Homeownership rate (younger than 45): 22
- Job growth (April 2021 to May 2021): 26
- Job growth (May 2020 to May 2021): 41
- Wage growth: 44
- Unemployment rate: 7
Image Credit: James Deitsch.
34. Maryland
- Index score: 61.35
- Down payment-to-income ratio: 36
- Housing costs as a % of income: 39
- Homeownership rate (younger than 45): 17
- Job growth (April 2021 to May 2021): 9
- Job growth (May 2020 to May 2021): 14
- Wage growth: 11
- Unemployment rate: 34
Image Credit: James_Lane.
33. Arkansas
- Index score: 58.28
- Down payment-to-income ratio: 3
- Housing costs as a % of income: 3
- Homeownership rate (younger than 45): 34
- Job growth (April 2021 to May 2021): 14
- Job growth (May 2020 to May 2021): 44
- Wage growth: 49
- Unemployment rate: 18
Image Credit: Rdlamkin.
32. South Dakota
- Index score: 56.44
- Down payment-to-income ratio: 20
- Housing costs as a % of income: 13
- Homeownership rate (younger than 45): 11
- Job growth (April 2021 to May 2021): 48
- Job growth (May 2020 to May 2021): 32
- Wage growth: 39
- Unemployment rate: 5
Image Credit: RiverNorthPhotography.
31. Ohio
- Index score: 55.83
- Down payment-to-income ratio: 5
- Housing costs as a % of income: 10
- Homeownership rate (younger than 45): 28
- Job growth (April 2021 to May 2021): 45
- Job growth (May 2020 to May 2021): 24
- Wage growth: 32
- Unemployment rate: 25
Image Credit: dypics.
30. Mississippi
- Index score: 53.99
- Down payment-to-income ratio: 2
- Housing costs as a % of income: 4
- Homeownership rate (younger than 45): 26
- Job growth (April 2021 to May 2021): 26
- Job growth (May 2020 to May 2021): 29
- Wage growth: 51
- Unemployment rate: 34
Image Credit: SeanPavonePhoto/istockphoto.
29. Georgia
- Index score: 51.53
- Down payment-to-income ratio: 23
- Housing costs as a % of income: 30
- Homeownership rate (younger than 45): 40
- Job growth (April 2021 to May 2021): 20
- Job growth (May 2020 to May 2021): 35
- Wage growth: 12
- Unemployment rate: 16
Image Credit: SeanPavonePhoto.
28. Delaware
- Index score: 49.69
- Down payment-to-income ratio: 33
- Housing costs as a % of income: 31
- Homeownership rate (younger than 45): 19
- Job growth (April 2021 to May 2021): 45
- Job growth (May 2020 to May 2021): 13
- Wage growth: 6
- Unemployment rate: 32
Image Credit: mdgmorris.
27. Tennessee
- Index score: 49.69
- Down payment-to-income ratio: 25
- Housing costs as a % of income: 21
- Homeownership rate (younger than 45): 32
- Job growth (April 2021 to May 2021): 20
- Job growth (May 2020 to May 2021): 21
- Wage growth: 35
- Unemployment rate: 25
Image Credit: Swarmcatcher.
26. Massachusetts
- Index score: 44.17
- Down payment-to-income ratio: 44
- Housing costs as a % of income: 44
- Homeownership rate (younger than 45): 44
- Job growth (April 2021 to May 2021): 14
- Job growth (May 2020 to May 2021): 4
- Wage growth: 4
- Unemployment rate: 34
Image Credit: Rolf_52.
25. Wyoming
- Index score: 44.17
- Down payment-to-income ratio: 30
- Housing costs as a % of income: 17
- Homeownership rate (younger than 45): 2
- Job growth (April 2021 to May 2021): 51
- Job growth (May 2020 to May 2021): 50
- Wage growth: 9
- Unemployment rate: 29
Image Credit: AnujSahaiPhotography.
24. Idaho
- Index score: 43.56
- Down payment-to-income ratio: 42
- Housing costs as a % of income: 29
- Homeownership rate (younger than 45): 7
- Job growth (April 2021 to May 2021): 44
- Job growth (May 2020 to May 2021): 16
- Wage growth: 45
- Unemployment rate: 6
Image Credit: knowlesgallery.
23. North Carolina
- Index score: 42.94
- Down payment-to-income ratio: 24
- Housing costs as a % of income: 27
- Homeownership rate (younger than 45): 36
- Job growth (April 2021 to May 2021): 34
- Job growth (May 2020 to May 2021): 21
- Wage growth: 25
- Unemployment rate: 23
Image Credit: DepositPhotos.com.
22. Utah
- Index score: 42.94
- Down payment-to-income ratio: 47
- Housing costs as a % of income: 49
- Homeownership rate (younger than 45): 3
- Job growth (April 2021 to May 2021): 26
- Job growth (May 2020 to May 2021): 28
- Wage growth: 33
- Unemployment rate: 4
Image Credit: ” 4kodiak”.
21. New Mexico
- Index score: 41.1
- Down payment-to-income ratio: 26
- Housing costs as a % of income: 18
- Homeownership rate (younger than 45): 30
- Job growth (April 2021 to May 2021): 1
- Job growth (May 2020 to May 2021): 47
- Wage growth: 21
- Unemployment rate: 50
Image Credit: Davel5957.
20. Illinois
- Index score: 39.26
- Down payment-to-income ratio: 16
- Housing costs as a % of income: 28
- Homeownership rate (younger than 45): 23
- Job growth (April 2021 to May 2021): 37
- Job growth (May 2020 to May 2021): 34
- Wage growth: 16
- Unemployment rate: 42
Image Credit: ibsky.
19. North Dakota
- Index score: 38.04
- Down payment-to-income ratio: 18
- Housing costs as a % of income: 2
- Homeownership rate (younger than 45): 37
- Job growth (April 2021 to May 2021): 34
- Job growth (May 2020 to May 2021): 45
- Wage growth: 50
- Unemployment rate: 12
Image Credit: sequential5.
18. Montana
- Index score: 37.42
- Down payment-to-income ratio: 40
- Housing costs as a % of income: 24
- Homeownership rate (younger than 45): 25
- Job growth (April 2021 to May 2021): 37
- Job growth (May 2020 to May 2021): 38
- Wage growth: 26
- Unemployment rate: 9
Image Credit: YinYang.
17. Colorado
- Index score: 34.97
- Down payment-to-income ratio: 46
- Housing costs as a % of income: 45
- Homeownership rate (younger than 45): 29
- Job growth (April 2021 to May 2021): 4
- Job growth (May 2020 to May 2021): 29
- Wage growth: 13
- Unemployment rate: 37
Image Credit: Jacob Boomsma / istockphoto.
16. Texas
- Index score: 34.97
- Down payment-to-income ratio: 21
- Housing costs as a % of income: 32
- Homeownership rate (younger than 45): 43
- Job growth (April 2021 to May 2021): 14
- Job growth (May 2020 to May 2021): 38
- Wage growth: 17
- Unemployment rate: 38
Image Credit: DenisTangneyJr.
15. Nevada
- Index score: 33.74
- Down payment-to-income ratio: 43
- Housing costs as a % of income: 41
- Homeownership rate (younger than 45): 47
- Job growth (April 2021 to May 2021): 2
- Job growth (May 2020 to May 2021): 1
- Wage growth: 24
- Unemployment rate: 47
Image Credit: AlizadaStudios.
14. New Jersey
- Index score: 30.67
- Down payment-to-income ratio: 38
- Housing costs as a % of income: 48
- Homeownership rate (younger than 45): 38
- Job growth (April 2021 to May 2021): 14
- Job growth (May 2020 to May 2021): 6
- Wage growth: 22
- Unemployment rate: 44
Image Credit: aimintang.
13. Rhode Island
- Index score: 30.06
- Down payment-to-income ratio: 35
- Housing costs as a % of income: 35
- Homeownership rate (younger than 45): 39
- Job growth (April 2021 to May 2021): 26
- Job growth (May 2020 to May 2021): 3
- Wage growth: 42
- Unemployment rate: 31
Image Credit: danlogan.
12. Hawaii
- Index score: 28.83
- Down payment-to-income ratio: 51
- Housing costs as a % of income: 50
- Homeownership rate (younger than 45): 48
- Job growth (April 2021 to May 2021): 3
- Job growth (May 2020 to May 2021): 8
- Wage growth: 2
- Unemployment rate: 51
Image Credit: Art Wager.
11. Connecticut
- Index score: 27.61
- Down payment-to-income ratio: 29
- Housing costs as a % of income: 42
- Homeownership rate (younger than 45): 35
- Job growth (April 2021 to May 2021): 7
- Job growth (May 2020 to May 2021): 9
- Wage growth: 47
- Unemployment rate: 46
Image Credit: traveler1116.
10. Arizona
- Index score: 26.99
- Down payment-to-income ratio: 37
- Housing costs as a % of income: 33
- Homeownership rate (younger than 45): 41
- Job growth (April 2021 to May 2021): 9
- Job growth (May 2020 to May 2021): 43
- Wage growth: 14
- Unemployment rate: 39
Image Credit: wanderluster.
9. Louisiana
- Index score: 21.47
- Down payment-to-income ratio: 17
- Housing costs as a % of income: 11
- Homeownership rate (younger than 45): 21
- Job growth (April 2021 to May 2021): 45
- Job growth (May 2020 to May 2021): 46
- Wage growth: 43
- Unemployment rate: 42
Image Credit: DenisTangneyJr.
8. Oregon
- Index score: 20.25
- Down payment-to-income ratio: 48
- Housing costs as a % of income: 46
- Homeownership rate (younger than 45): 45
- Job growth (April 2021 to May 2021): 9
- Job growth (May 2020 to May 2021): 19
- Wage growth: 28
- Unemployment rate: 32
Image Credit: HaizhanZheng.
7. California
- Index score: 16.56
- Down payment-to-income ratio: 50
- Housing costs as a % of income: 51
- Homeownership rate (younger than 45): 50
- Job growth (April 2021 to May 2021): 4
- Job growth (May 2020 to May 2021): 24
- Wage growth: 5
- Unemployment rate: 49
Image Credit: mlauffen.
6. Washington
- Index score: 16.56
- Down payment-to-income ratio: 45
- Housing costs as a % of income: 43
- Homeownership rate (younger than 45): 42
- Job growth (April 2021 to May 2021): 20
- Job growth (May 2020 to May 2021): 24
- Wage growth: 31
- Unemployment rate: 28
Image Credit: 4nadia.
5. Virginia
- Index score: 15.95
- Down payment-to-income ratio: 34
- Housing costs as a % of income: 34
- Homeownership rate (younger than 45): 33
- Job growth (April 2021 to May 2021): 37
- Job growth (May 2020 to May 2021): 36
- Wage growth: 41
- Unemployment rate: 19
Image Credit: DenisTangneyJr.
4. Washington, D.C.
- Index score: 13.5
- Down payment-to-income ratio: 49
- Housing costs as a % of income: 26
- Homeownership rate (younger than 45): 51
- Job growth (April 2021 to May 2021): 9
- Job growth (May 2020 to May 2021): 51
- Wage growth: 8
- Unemployment rate: 44
Image Credit: dkfielding.
3. New York
- Index score: 13.5
- Down payment-to-income ratio: 41
- Housing costs as a % of income: 38
- Homeownership rate (younger than 45): 49
- Job growth (April 2021 to May 2021): 20
- Job growth (May 2020 to May 2021): 7
- Wage growth: 36
- Unemployment rate: 47
Image Credit: Eloi_Omella.
2. Florida
- Index score: 9.2
- Down payment-to-income ratio: 39
- Housing costs as a % of income: 47
- Homeownership rate (younger than 45): 46
- Job growth (April 2021 to May 2021): 7
- Job growth (May 2020 to May 2021): 36
- Wage growth: 46
- Unemployment rate: 24
Image Credit: Elisa.rolle.
1. Alaska
- Index score: 0
- Down payment-to-income ratio: 32
- Housing costs as a % of income: 37
- Homeownership rate (younger than 45): 27
- Job growth (April 2021 to May 2021): 48
- Job growth (May 2020 to May 2021): 29
- Wage growth: 48
- Unemployment rate: 39
This article originally appeared on MagnifyMoney.com and was syndicated by MediaFeed.org.
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