These 10 Cities Have the Most Financially Stressed People — But Location Isn’t the Only Factor Causing Money Woes
Written by
Vance Cariaga
Edited by
Nicholas Morine
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Financial stress is an equal opportunity headache that doesn’t discriminate with regard to age, ethnicity, income or location. A 45-year-old millionaire in Boston might be just as susceptible to financial stress as a retired farmer in Arkansas, or a Gen Z schoolteacher in Oregon. Even so, some places tend to have higher rates of stress than others, though for reasons that go beyond just location.
About half of American adults often experience feelings of “hopelessness and despair” due to financial difficulties, according to a recent survey from Raisin, a savings marketplace formerly known as SaveBetter. But the degree of financial stress can vary widely depending on where you live.
In its July survey of 4,000 adults in 21 American cities, Raisin found that San Francisco reported the lowest level of financial worry, with only 28% of respondents there saying they “often worry” about their finances. That compares to roughly two-thirds (67%) of people living in Phoenix. Residents of Columbus, Ohio, are the most likely to experience headaches and other physical symptoms, at 56% of respondents.
Phoenix and Columbus also rank high for the percentages of adults who anticipate cutting costs over the next year, at 63% and 56% respectively. Other cities high on that list include Memphis, Tennessee (62%) and Indianapolis, Indiana (60%).
All Americans Seem To Be Struggling With Finances
No matter the region, a “significant number” of people across the country are struggling to make the right financial decisions, according to Raisin CEO Cetin Duransoy.
“This is evident across different age groups and income levels, from those who find it challenging to set aside money for emergencies to retirees who struggle to make their retirement savings work,” Duransoy stated in a news release. “No matter what your personal circumstances may be, understanding how to make informed financial decisions is crucial.”
Here are some other highlights from the survey:
- Half of respondents say they plan to cut costs to improve their financial situation.
- Nearly two-thirds (65%) of women say they often worry about finances, compared with 57% of men.
- San Diego reported the highest number of people who plan to invest in stocks and funds (30%), followed by New York City (29%) and Los Angeles (28%).
- Denver has the highest number of people who report having “low or no financial knowledge” (39%).
- Austin, Texas and New York City report having the highest financial literacy, with 76% of respondents in those cities saying they have a moderate or high level of financial knowledge.
- Respondents in San Francisco are most likely to save for retirement (27%).
So which cities stress the most about money? Here are the top 10 in terms of the percentage or residents who say they often worry about their financial situation:
- Phoenix, Arizona: 67%
- Memphis, Tennessee: 65%
- Philadelphia, Pennsylvania: 65%
- Washington, D.C.: 64%
- Chicago, Illinois: 64%
- Indianapolis, Indiana: 64%
- Columbus, Ohio: 62%
- Los Angeles, California: 62%
- Boston, Massachusetts: 62%
- Charlotte, North Carolina: 62%
Location isn’t the only reason these cities rank high. Other factors such as age and gender also play a part. People who are 35- to 44-years-old tend to stress the most about money, so cities with high percentages of this age group will rank high in financial stress. Also, because women tend to stress over money more than men, cities with proportionally higher female populations are likely to rank higher in financial stress.
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