You've Been Warned: Bankrate Says Saving Money Is Hardest If You Live In This State

The national cost of living has continuously gone up since 1980, according to the Consumer Price Index. That means it has generally taken more to save, regardless of which state you live in. According to a report released in April 2025 from Bankrate, however, there are some states in which it is easier to save than others. At the bottom of this list is Hawaii, which is a popular tourist destination but one of the states with the worst economy.

Bankrate outlined that states including Tennessee, Missouri, and Texas are some of the best states for saving, while Hawaii joined Connecticut and Vermont to form the three worst states for saving. The reason for the Aloha States' low ranking ultimately is due to two factors. Firstly, the state has seen a declining number of jobs available since 2021. Additionally, Hawaii has seen a rise in the cost of living on a scale far greater than the contingent 48 states. This means that for many Hawaiian residents, classic saving techniques like the 50/30/20 trick are unrealistic, much like they are for most Americans.

Hawaii's economy differs from many others states in the U.S., partly due to its dependence on tourism, with just over 17% of its gross domestic product coming the industry. This means many workers may have some job instability around changing seasons. Plus, salaries in Hawaii are generally lower than they are in the mainland for almost every industry, which makes it hard to keep up with the rising cost of living.

The cost of consumer goods in the island state has continuously risen, outpacing national trends. Particularly, the cost of food spiked between 2021 and 2022 and has continued to rise ever since. World Population Review now indicates that grocery prices in the state are 50% higher than those of the mainland. 

Along with food, housing is increasingly more expensive in the state, with a median housing sale price of roughly $725,000, according to Zillow. All of these factors create a difficult economy to save money in. While there are savvy ways to save, including converting an IRA to a Roth IRA, or leveraging a 401(K), the amount of money you need to make in order to save in Hawaii continues to grow.