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Which states struggle most with financial independence? – Deseret News
For many, it seems like America is becoming too expensive to live in.
Inflation plays a significant role in this context, reaching a 40-year high of 9.1% in the summer of 2022. It has since fallen: “In May, underlying inflation, which excludes volatile food and energy prices, rose 0.2% monthly and 3.4% compared to the previous year. Economists had projected an annual gain of 3.5%,” according to Forbes Advisor.
In 2022, a single parent with two children would need an average of $35.80 per hour to survive, an annual income of $74,400 that most American families were nowhere near earning.
Starting in the fourth quarter of 2023, the US Bureau of Labor Statistics reported the average salary in the US at $59,384. Mississippi has the lowest average ($48,048) and Massachusetts has the highest ($86,840). Utah’s average salary was $61,516.
Due to the high cost of living, study carried out by a digital personal finance company To reach found that very few Americans live free from financial burdens and only 1 in 10 believe they live with financial freedom.
“We’re seeing far fewer Americans aiming to become ‘rich,’ and many families simply trying to pay their bills on time. With all the economic pressures American families face, financial freedom is now more about making ends meet,” said Brad Stroh, co-founder and co-CEO of Achieve, according to the study. “Achieving financial stability is particularly challenging for consumers living with debt.”
Are certain states more financially free than others?
A new report from WalletHub found that when it comes to financial dependencies, some states struggle more than others to remain self-sufficient. “Residents demonstrate their independence in a variety of ways, from not relying on state or federal benefits to saving money for the future and not being addicted to gambling, alcohol or drugs,” analyst Cassandra Hoppe said in the study.
The five most independent states:
- Utah
- Colorado
- Florida
- Wisconsin
- Vermont
The five most dependent states:
- Louisiana
- Kentucky
- Mississippi
- Alaska
- West Virginia
The Beehive State took the crown for most independent living for a few reasons. Few Utahns receive government assistance. The study noted that Utah “has an extremely low percentage of people on public assistance income (1.6 percent) or who receive SNAP or food stamps (5.6 percent).”
According to Department of Workforce ServicesThe state’s unemployment rate was 2.9% last month, which is comparatively low next to other states like California (5.2%) or the national average of 4.0%.
“To top it off,” WalletHub added, “people in Utah are not very dependent on addictive substances. Utah has the lowest share of people who smoke or binge drink in the country.”