HONOLULU (KHON2) — Here in Hawaiʻi, we tend to be the best at many things; and this new designation is no different.
Hawaiʻi has earned the top spot as the best state for budgeting, according to a new 2025 report.
The analysis looked at all 50 states across 12 key financial measures that included credit scores, debt-to-income ratios and foreclosure rates.
With a total score of 77.94, Hawaiʻi ranked first in spending and debt management, ninth in credit and second in savings.
Here’s what we found in the report.
Strong savings habits
More than 64% of residents in Hawaiʻi put money aside for emergencies or rainy days. That is the highest rate in the nation. This shows a significant share of families are prepared for unexpected costs rather than using every dollar of income as it comes in.
Another marker of financial discipline in Hawaiʻi is how people handle credit cards. Just under 26% of residents pay only the minimum balance. That is the lowest percentage in the country.
By paying more than the minimum, residents reduce interest costs and strengthen their credit profiles over time.
Housing costs managed wisely
Hawaiʻi is known for high housing prices, but the study found residents budget for these expenses more carefully than anywhere else. Average housing expenses make up only about 1.4% of the median home price, the lowest share in the United States.
That means Hawaiʻi residents are keeping housing costs in balance with their income and financial goals. But this report did not examine how many jobs one needs in order to achieve this.
National perspective
Washington and Massachusetts followed Hawaiʻi in the rankings. Washington placed second overall, with strengths in low delinquency rates on mortgages and credit cards.
Massachusetts came in third, with residents carrying the lowest credit card and car loan debt compared with income.
“Not having a budget sets you up for financial failure. 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,” explained Chip Lupo, an analyst for the study. “Unfortunately, many people were never taught how to budget, so states should strongly consider requiring instruction on budgeting in schools.”
You can click here to read the full report.
Hawaiʻi’s first-place ranking reflects a culture of disciplined financial planning. From setting aside savings to managing credit and housing costs, residents demonstrate a steady approach to money that other states can look to as an example.