Texas Is Among the Worst States for Saving Money In The U.S.
Texas was just listed as one of the hardest states to actually save money, especially after a pandemic of biblical times has turned the economy and workforce on its ear. The COVID-19 pandemic has created deep financial hardships for hundreds of thousand Texas families, many of which have not recovered from the last recession. With Texas record job losses, reduced hours, and wage cuts, the large share of Texans who were already living paycheck to paycheck are now struggling even more to cover basic expenses. A staggering 37 percent of Texans reported that they would be unable to cover a $400 emergency expense without assistance.
Midland is actually one small city in Texas that is quite opposite of other similarly sized cities as it ranks number one for the ability to save money.
To find the best states for saving money, researchers at Self Financial analyzed the latest data from the U.S. Census Bureau, the Bureau of Economic Analysis, Zillow, and the Department of Housing and Urban Development. The researchers ranked states according to a composite score based on the following factors: real per capita personal income, median housing costs as a percentage of median household income, and the historical unemployment rate. For additional context, researchers also calculated the median home price.
Composite scores ranged from 59.35 to 98.20. With a score of 69.90, Texas is among the worst states for saving money in the U.S. Here is a summary of the data for Texas:
Composite score: 69.90
Real per capita personal income: $48,320
Median housing costs as a percentage of household income: 21.0%
Historical unemployment rate: About average
Median home price: $207,208