Idaho Makes List Of ‘Money-Smart’ States

Idahoans have made another “best-of” list. This time, for how well we manage our money.

Kiplinger’s Magazine gives Idaho the #3 spot on its list of money-smart states.

“I have a spreadsheet with my expenses on there, and added expenses that do come up each month,” said Sam Ellsworth.

Ellsworth only gets paid once a month from tenants who live in his rental properties. In Idaho Falls on Tuesday, he showed our station how he makes it work.

“Sometimes bills don’t come out till halfway through the month and you just have to save,” said Ellsworth.

The once-a-month paycheck means musical money chairs for Ellsworth, but he’s still among nearly 1.6 million other Idahoans getting a pat on the back from the publication. Kiplinger’s said Idaho folks are more knowledgeable when it comes to personal finance terms and philosophies.

Idaho ranks third in the nation and is tied with Utah.

“You know what, we just appreciate what we have,” said University of Idaho associate professor Luke Erickson.

Erickson is a personal finance expert for the university.

At his office in Rexburg, Erickson said he isn’t surprised Idaho made the list.

Despite the honor, Erickson said he gets to see the ugly side of financial management. Too many folks, he said, will focus on cutting small luxuries like eating out, but still take out loans on big ticket items like cars.

“What I tell people first is, get the big pieces of the puzzle in place and make sure they fit, and then worry about the small stuff,” he said.

Getting the financial house in order, said Erickson, should begin with the car and the house. Expenses requiring upkeep will drain a bank account much faster than too many meals on the town, he said.

Erickson also said when it comes to saving, do it first.

“If you have a goal that you want to save up for, make sure that at the beginning of the month when you get paid that that money right of the top gets transferred to that account,” he said.

Erickson said personal financial success lies in three basic principles.

He said focusing on budgeting, staying out of debt, working to reduce debt and building credit will keep Idaho on the good side of Kiplinger’s list.

Mississippi was the magazine’s “money-dumbest” state. Minnesota took the top honor of “money-smartest.”