The following are the weighted characteristics used to tabulate WalletHub's financial stability ranking system. The five dimensional scores were summed to calculate a total score and create a ranking. Cities were also assigned ranks for each of the five dimensions.
Credit Standing – Total Points: 20
- Average Credit Score: Triple Weight (~7.50 Points)
- Foreclosure Rate: Full Weight (~2.50 Points)
- Median Credit Card Debt per Person: Full Weight (~2.50 Points)
- Credit Utilization: Full Weight (~2.50 Points)
- Percentage of Underbanked Households: Full Weight (~2.50 Points)
- Percentage of People Delinquent on their Debt : Full Weight (~2.50 Points)
Responsible Spending – Total Points: 20
- Mortgage Debt per Person as a Percentage of Median Earnings: Full Weight (~6.67 Points)
- Non-Mortgage Debt per Person as a Percentage of Median Earnings: Full Weight (~6.67 Points)
- Income Volatility: Full Weight (~6.67 Points)
Savings – Total Points: 20
- Percentage of Households Who Saved for Unexpected Expenses or Emergencies in Past 12 months: Full Weight (~4.00 Points)
- Percentage of Households Who Kept Their Savings in the Savings Account: Full Weight (~4.00 Points)
- Credit Cards Comparison: Full Weight (~4.00 Points)
Note: This metric measures the real intent of residents to compare credit cards. - Annual Consumer Savings Account Averages: Full Weight (~4.00 Points)
- Employer-Based Retirement Plan Access and Participation Rate: Full Weight (~4.00 Points)
Risk Exposure – Total Points: 20
- Percentage of Residents without Health Insurance: Triple Weight (~6.67 Points)
- Exposure to Automobile Liability (“Most and Least Risky States for Drivers’ Wallets Ranking”): Full Weight (~2.22 Points)
- Percentage of Homes Underwater (with negative equity): Full Weight (~2.22 Points)
- Unemployment Rate: Full Weight (~2.22 Points)
- Poverty Rate: Full Weight (~2.22 Points)
- Paid Family Leave: Full Weight (~2.22 Points)
- Job Security: Full Weight (~2.22 Points)
Note: (Number of Employees in 2015 - Number of Employees in 2014) / Number of Employees in 2014
Earning Power – Total Points: 20
- Median Annual Income (adjusted for cost of living): Triple Weight (7.50 Points)
- Income Growth: Full Weight (~2.50 Points)
- Underemployment: Full Weight (~2.50 Points)
- Women’s Earnings As A Percentage Of Men’s Earnings: Full Weight (~2.50 Points)
- Percentage of Residents Who Didn’t Graduate High School: Full Weight (~2.50 Points)
- “Job Seekers” Rank: Full Weight (~2.50 Points)
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