As an advisor, your money management skills are more than likely up to snuff. But how does the average American’s management abilities measure up?
In a new analysis, WalletHub ranks 2,570 U.S. cities by their residents’ money management skills. The ranking is based on eight metrics, including credit score, credit card debt-to-income ratio, mortgage debt-to-income ratio, car loan debt-to-income ratio, student loan debt-to-income ratio, average number of late payments, average percentage of credit used and foreclosure rate. Each city then receives an overall score using the weighted average across all metrics.
While the best cities on this list are perhaps indicative that their residents are doing just fine financially, the worst cities could present an opportunity for advisors; these are the places where residents need financial advice the most, one could argue. Many of the worst cities on this list are located in Pennsylvania and Michigan. You could say these represent the untapped corners of the wealth management industry.
Here are the 10 best and worst cities at money management that came out of WalletHub’s analysis.