The exchange for the debt economy
Source: site
With the current state of the economy, the American dream can feel more like a nightmare. As of 2025, nearly one in four U.S. households is livingpaycheck to paycheck. With rising costs and lingering debt, 2026 is shaping up to be a year when smart money management matters more than ever. From rent and grocery prices to student loans and credit card debt, keeping track of every dollar is a challenge many Americans face daily.
Good money habits aren’t just about avoiding late fees: they can help maintain strong credit, reduce stress, and give people more control over their financial future. Yet, not all cities show the same level of financial discipline. In some places, residents have figured out how to make money work for them instead of the other way around.
Cities Leading the Way in Smart Money Habits
Finance company WalletHub crunched the numbers on more than 2,500 U.S. cities, scoring them on 10 key financial metrics, from median credit scores to debt-to-income ratios. Higher scores point to stronger money-management skills, and the map below shows which cities rose to the top.
Leading the pack is Cupertino, California, where residents keep credit card debt low—a 1.5% debt-to-income ratio—and make timely payments. With a median credit score of 778, Cupertino is solidly in the excellent range. Add low credit use and almost no delinquencies, and the city is basically showing off its money skills.
Californians seem to have money management down: Los Altos comes in second, boasting extremely low bankruptcy and delinquency rates. Residents maintain responsible borrowing habits, including a median credit card debt that’s just 2.3% of median income, and a high median credit score of 785. Even with relatively high mortgages, everyday financial habits remain disciplined and consistent.
Heading East, Lexington, Massachusetts, rounds out the top three. Residents carry modest car, student, and credit card debt, rarely miss payments, and maintain a median credit score of 783. Borrowing responsibly and paying on time is just part of daily life here.
The Metrics That Matter for Financial Health
So, how do you figure out which cities actually know how to handle money in 2026? Here’s a closer look at the top 10 cities and how they rank on key measures like credit scores and late payments:
Overall Rank
City
Percentile Rank
Median Credit Score
Avg. Number of Late Payments
1
Cupertino, CA
99
778
0.67
2
Los Altos, CA
99
785
0.38
3
Lexington, MA
99
783
0.68
4
Scarsdale, NY
99
775
1.04
5
Palo Alto, CA
99
773
0.66
6
Redmond, WA
99
770
0.92
7
Mountain View, CA
99
768
1.07
8
Sunnyvale, CA
99
765
1.23
9
Saratoga, CA
99
788
0.48
10
Foster City, CA
99
777
1.03
Looking at the rankings, a few patterns immediately stand out. Cities that score highest tend to do well across multiple measures, not just one or two. By examining debt levels and financial behavior, it becomes clear which places consistently keep residents’ finances under control and which habits make the biggest difference.
Debt factors look at how much residents owe on credit cards, mortgages, car loans, and student loans, plus how much of their available credit they actually use. Financial behavior includes median credit scores, average late payments, delinquency rates, recent bankruptcies, and foreclosure rates. Of these, median credit scores carry extra weight, showing overall financial health, while average late payments reveal whether residents consistently pay their bills on time.
“The most common mistake people make with money is assuming they’ll deal with it later,” Andrew Burnstine, Ph.D., an associate professor of business at Lynn University, told WalletHub. “Many people don’t actively manage their finances until problems arise, allowing everyday spending and debt to grow unchecked.” That’s exactly why these rankings matter: they highlight cities where residents don’t let small issues pile up, instead staying on top of debt, payments, and everyday financial decisions.
Upcoming Events
The exchange for the debt economy