The state you live in can influence how well you’re able to save money. A bankrate.com study analyzed economic conditions, interest rates for certificates of deposit (CDs) and high-yield savings accounts, and taxes to rate the places easiest to save.

The ten states that were most favorable to savers were Tennessee, Missouri, Texas, Oklahoma, Florida, Kentucky, South Dakota, Louisiana, Indiana, and Michigan.  Many of these states have areas with a low cost of living. Some don’t have state income taxes, these include Florida, Tennessee, South Dakota, and Texas.

In contrast, the ten states that were least favorable for savers were Hawaii, Connecticut, Vermont, California, New Jersey, Delaware, Maryland, Massachusetts, Washington, New York, and Oregon. These states tend to have a higher cost of living; many of them have higher taxes.

No matter where you live, you can increase your savings by:

• using a budgeting app to maintain a complete record of your finances. By tracking your spending, you can target an amount each month for saving.
• automating your monthly saving with online transfers to a separate account. 
• researching online banks to take advantage of higher savings rates for CDs, money-market accounts, and high-yield savings accounts in other geographic locations. 

For additional information on the best saving states, go to:

Link #1

Link #2

Teaching Suggestions

• Have students obtain suggestions from others on how to increase their savings.
• Have students search online for websites and AI prompts that would help them increase their savings.

Discussion Questions 

1. Other than the interest rate, what features of a savings account might be considered when deciding where to save?
2. Describe actions a person might take to obtain a higher return on their savings.