These states are the worst at budgeting, survey finds

WalletHub is out with a new report showing the states with the best and worst budgeters. 

The survey found that one in five people admit they are not completely honest with themselves while creating a budget, raising concerns about how effectively households are tracking and controlling their spending.

In an effort to highlight where Americans excel at managing money—and where challenges remain—WalletHub conducted an analysis of all 50 states. The study evaluated 12 key financial metrics, including average credit scores, debt-to-income ratios, and foreclosure rates, to provide a comprehensive picture of budgeting habits nationwide.

What they're saying:

"Not having a budget sets you up for financial failure," WalletHub Analyst Chip Lubo said in an online statement. "If you don’t carefully plan out and track how much of your income you can dedicate toward each of your expenses and other financial priorities each month, it’s easy for frivolous spending to get out of hand and prevent you from saving money, investing or even keeping up with your bills. Unfortunately, many people were never taught how to budget, so states should strongly consider requiring instruction on budgeting in schools."

States with the best budgeters

Dig deeper:

Hawaii
Hawaii ranks first for the best budgeters in the country. More than 64% of residents save money for emergencies, showing they’re not living paycheck to paycheck or spending all their extra cash. Hawaiians also handle credit cards well—only about 26% pay just the minimum each month. Paying more helps avoid interest and boosts credit scores.

RELATED: These are Americans' top financial regrets -- and what to do about them

Washington
Washington comes in second as residents have one of the lowest rates of late mortgage payments, meaning most people budget well enough to cover their bills. They also stay on top of credit card payments, with one of the lowest rates of seriously overdue debt.

Only about 16% of Washingtonians spend more than they earn, which helps keep delinquency low. Plus, they take on less student loan debt than most states. In fact, Washington has the lowest median student loan debt in the country, at about 27% of the state’s median income.

Massachusetts
Massachusetts ranks third with people carrying relatively little debt compared to what they earn. The state has the lowest median credit card debt (about 4% of median income) and lowest car loan debt (about 20% of median income). Their strong budgeting habits also show in their credit scores. Massachusetts has a median score of 742—the sixth highest in the U.S.—just a few points shy of "excellent."

Nearly 60% of residents put money aside for emergencies, ranking fourth in the nation for rainy-day savings.

How you can better budget

What you can do:

• Build an Emergency Fund – Try to save a little each month until you have 3–6 months’ worth of expenses set aside. Even small contributions add up.
• Prioritize Your Spending – Cover the most important bills first, then decide what extras you can afford. This way, you keep what matters most without piling up debt.
• Separate Your Spending – Use different accounts or cards for different needs. For example, one for daily expenses (paid off monthly) and another for paying down debt at lower interest.
• Pay Off Debt Smarter – Use the "avalanche" method: pay the minimum on all debts, then put extra money toward the one with the highest interest. Once that’s gone, move to the next.
• Balance Saving and Living – Always budget for essentials, but also set aside something for savings—and a little for enjoyment. A healthy budget supports both your future and your well-being.