How do people get themselves in a money mess? Clearly there is no one answer, but spending and living beyond ones means are high on the list. And that’s true regardless of what ones means may be.
Regardless of income, managing money is an essential skill, a skill that is lacking in too many people.
Money management is a life skill that unfortunately isn’t taught as often as it should be. It’s a skill that everyone should want to learn too, as it can bring about flawless credit and freedom from debt. But a survey of consumer financial literacy reflects a growing need for financial instruction in U.S. households.
Only 55% of adults, for instance, give their knowledge of personal finance high marks, and just two in five maintain a budget and keep an eye on their spending. Good money management skills are more important now than ever during the COVID-19 pandemic, as many Americans are dealing with unemployment, lower wages or costly medical bills.
It’s clear that some Americans are better than others at handling their finances. In order to determine where they live, WalletHub compared more than 2,500 cities based on 10 key indicators of money management. Our data set ranges from the average credit score to average number of late payments to mortgage debt-to-income ratio.