With more than 4 in 5 Americans saying that budgeting better is one of their top priorities for 2026, the personal-finance company WalletHub has released its updated report on the Counties With the Best and Worst Budgeters, along with expert insights, to show where residents display strong financial habits and where improvement is needed.
To create the ranking, WalletHub analyzed more than 2,800 counties across 11 key metrics, including the percentage of households without a bank account, credit card delinquency rate, and the share of households with zero net worth.
| Counties With the Best Budgeters | Counties With the Worst Budgeters |
| 1. Los Alamos, NM | 2821. Randolph, GA |
| 2. Clear Creek, CO | 2822. Tallahatchie, MS |
| 3. Gilpin, CO | 2823. Wilcox, AL |
| 4. Morgan, UT | 2824. East Carroll, LA |
| 5. Falls Church, VA | 2825. Humphreys, MS |
| 6. Pitkin, CO | 2826. Tunica, MS |
| 7. Jefferson, MT | 2827. Franklin, VA |
| 8. Stillwater, MT | 2828. Perry, AL |
| 9. Custer, SD | 2829. Emporia, VA |
| 10. Washington, MN | 2830. Quitman, MS |
To view the full report and your county’s rank, please visit:
https://wallethub.com/edu/
“Although inflation has continued easing from its earlier peaks over the past few years, price growth has remained moderate in recent months, and many Americans are still struggling financially. As a result, it’s extremely important to have good budgeting skills in order to make sure all your essential expenses get paid while still leaving room for saving, debt payoff, and at least a few ‘wants’ to maintain your mental health.”
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“Los Alamos County in New Mexico has the country’s best budgeters. Only 6% of households in the county don’t have enough liquid assets to survive at the poverty level for at least three months without any new income. This demonstrates that people are including emergency fund contributions in their budgets, which is extremely important. In addition, people in Los Alamos County leave an adequate amount of money in their budget for paying back debts. This is clear because the county has the lowest share of people with student loan debt in default and the 25th lowest credit card delinquency rate.”
- Chip Lupo, WalletHub Analyst
Expert Commentary
What effective budgeting tips can you give to consumers who want to meet their financial goals?
“Two simple habits make a big difference. First, pay yourself first each paycheck by putting money into a retirement account and building an emergency fund. Ideally, people should contribute regularly to a tax-advantaged account like a Roth IRA and aim to accumulate six to nine months of expenses in a liquid savings account. Second, live within your means. This may mean driving an older car, renting a smaller place, or skipping expensive vacations early on. Those things often become possible later if people build good financial habits first. It’s also wise to avoid gambling or chasing quick returns from stock tips or crypto. Far more people lose money than get rich with these things.”
Chris Douglas – Professor, The University of Michigan-Flint
“Meeting financial goals starts with the 50-30-20 rule: half of your income goes to needs, 30 percent to wants, and 20 percent to savings. According to 2026 consumer spending reports, households using automated savings tools are 40% more likely to hit their annual targets than those who save manually. By automating your savings on payday, you remove the temptation to spend money that should be building your future wealth and security. Tracking every dollar through a zero-based budget ensures that your money works for you rather than disappearing into mindless consumption that offers no long-term value. Automating your savings and following a zero-based budget are the most effective ways to reach your long-term financial targets.”
Andrew Burnstine, Ph.D – Associate Professor, Lynn University
What are some of the worst budgeting mistakes and how can we avoid them?
“The biggest budgeting mistake is spending more than you earn each month, especially by carrying credit card balances. Credit cards can make overspending easy, but the interest charges will quickly turn a small balance into a much larger one. Another common mistake occurs when buying a car. Many buyers negotiate over the monthly payment instead of the purchase price. Dealers can make a payment look affordable by stretching out the loan term while charging a higher interest rate, which can significantly increase the total cost of the vehicle. It is a good idea to have your financing already in place prior to arriving at the dealership to look at vehicles so negotiation can be limited to the purchase price.”
Chris Douglas – Professor, The University of Michigan-Flint
“The most damaging budgeting mistake is failing to account for irregular expenses, such as annual car registrations or holiday gifts, which often lead to high-interest credit card debt. Facts from WalletHub 2026 indicate that the average American is just one $400 emergency away from a financial crisis, leaving them vulnerable to a single medical bill or car repair. Another common error is lifestyle creep, where spending increases at the same rate as a salary raise, effectively preventing real wealth accumulation over a career. Avoiding these traps requires a dedicated buffer for unexpected costs and a commitment to living below your means even as your income grows through the years. Maintaining a robust emergency fund and avoiding lifestyle creep are essential for protecting your financial stability against unexpected life events.”
Andrew Burnstine, Ph.D – Associate Professor, Lynn University
What are some key steps to reduce or better manage debt?
“The first step is to stop adding new debt. That may require temporarily cutting spending or adjusting your budget. Second, consider consolidating debt into a lower-interest loan if possible. Even reducing the interest rate by a few percentage points can save a significant amount over time. Finally, create a clear repayment plan and stick to it. Consistency matters more than speed when paying down debt.”
Chris Douglas – Professor, The University of Michigan-Flint
“Managing debt effectively requires a strategic choice between the snowball method, which targets small balances for quick wins, and the avalanche method, which saves money by paying off high-interest rates first. Facts from WalletHub's 2026 data show that total United States credit card debt has surpassed $1.3 trillion, making interest payments a massive drain on the middle class. Contacting creditors to negotiate lower rates or consolidating high-interest loans into a single lower payment can save a household thousands of dollars over the life of the debt. Prioritizing extra payments toward your most expensive debt while avoiding new charges is the fastest path to total financial independence. Choosing a strategic repayment method and negotiating lower interest rates will drastically accelerate your journey to becoming debt-free.”
Andrew Burnstine, Ph.D – Associate Professor, Lynn University
5 Tips for Better Budgeting
- Plan things out: If you take the time to draw up a detailed plan, your odds of sticking to it will increase. Before you start, be sure to familiarize yourself with the basic process of making a budget, including gathering information about your finances, setting long-term goals, ordering your expenses by priority and assigning them an appropriate amount of your income. The better you understand the importance of budgeting, the more you’ll be able to improve your credit score, avoid overspending, and prepare yourself for the future.
- Leverage free budgeting tools: There are some great free budgeting tools online that can help you build your perfect budget using a variety of templates. Sometimes, these tools can even sync with your accounts to automatically track your spending and make it much easier to see your progress.
- Try different budgeting strategies: Different budgeting methods work best for different people. For example, you might want a budget that focuses on making sure every dollar is assigned to something specific (zero-based budgeting), one that sets specific percentages for needs, wants and savings (such as the 50/30/20 budget rule), or one that sets strict limits on individual spending categories (envelope method). You may need to try out a few types before deciding what works best for you.
- Prioritize the right things: Your first priority should be making payments on your debts. Next, you should focus on paying your essential monthly expenses and saving money for the future. Once you’ve put money toward all of those things, you can set some aside for “wants.”
- Stick to your budget: The best way to track your progress is to sync your bank accounts and credit cards to a budgeting app so you can easily see changes day by day. It’s also good to remind yourself of your long-term budgeting goals often by having them written down in a prominent place. You can ask a friend or family member to help keep you accountable, too!
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