According to the study, 3.6% of workers in the Grand Rapids metro area have jobs that typically pay six figures or more. Courtesy Experience Grand Rapids
A new study finds Grand Rapids residents could use a little help with personal finance.
Wallethub published a ranking last week of 2020’s “Best & Worst Cities at Money Management,” and Grand Rapids ranks No. 67 out of 244 midsize cities in the U.S. and No. 979 overall.
To determine the cities best at handling their finances, WalletHub compared 2,572 municipalities across two key metrics — debt level and financial behavior — using data from TransUnion and Renwood RealtyTrac.
Each metric included five factors.
The debt level metric included average percent of credit used, along with credit card, mortgage, car loan and student loan debt-to-income ratios.
The financial behavior metric included median credit score, average number of late payments, share of delinquent debtors, share of adults with a recent bankruptcy and foreclosure rate.
Each metric was graded on a 100-point scale with a score of 100 representing the best money-management skills.
Weighted averages were given across all metrics to calculate each city’s overall score — with credit scores weighted double — and the resulting scores were used to rank-order the sample.
Cities were sorted into population categories: small cities (fewer than 100,000 people), midsize (100,000 to 300,000 people) and large (more than 300,000 people).
Grand Rapids had a median credit score of 685, credit card debt-to-income ratio of 5.12%, mortgage debt-to-income ratio of 279.42%, car loan debt-to-income ratio of 29.73%, student loan debt-to-income ratio of 53.57% and 3.6 as the average number of late payments, for an overall weighted score of 67.55.
Top 10 midsize cities for money management
1. Sunnyvale, California
2. Bellevue, Washington
3. Cambridge, Massachusetts
4. Santa Clara, California
5. Fremont, California
6. San Mateo, California
7. Arlington, Virginia
8. Berkeley, California
9. The Woodlands, Texas
10. Cary, North Carolina
Bottom 10 midsize cities for money management
235. Birmingham, Alabama
236. Lehigh Acres, Florida
237. Savannah, Georgia
238. Clarksville, Tennessee
239. North Charleston, South Carolina
240. Fayetteville, North Carolina
241. Montgomery, Alabama
242. Miami Gardens, Florida
243. Killeen, Texas
244. Jackson, Mississippi