Vance Cariaga

Fri, May 23, 2025, 10:01 AM5 min read

There’s no magic formula for being financially savvy, but there certainly an art to being good with money. It’s mostly a mix of planning, common sense, your credit score, commitment and a little cost-of-living calculus. People who actively build a financial blueprint they can follow — budget included — are prepared for the future and manage their money in a way that builds wealth.

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So how do you stack up? Are you savvier than the average American? Here’s a look at several signs you’re on the right path.

It doesn’t take much effort to find the banks that offer the best interest rates — a simple internet search will deliver all the info you need to better reach your long-term goals. Even so, a lot of U.S. consumers settle for rates as low as 0.01% APY when they can score rates at or above 4.5% APY.

GOBankingRates consistently researches to find the best high-yield savings accounts available and here are the best high-yield savings accounts for 2025:

• EverBank Performance Savings Account

• Bask Bank Interest Savings Account

• Jenius Bank High-Yield Savings Account

• Bread Financial High-Yield Savings Account

• Western Alliance Bank High-Yield Savings Premier

• Acorns Emergency Fund

• Wealthfront Cash Account

• Betterment High-Yield Cash Account

• GO2bank High-Yield Savings Account

• Salem Five Direct eOne Savings Account

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Making a financial plan and establishing a monthly budget might be the two most important traits of financially savvy people. Your financial plan should encompass both long- and short-term goals and include everything from leisure activities and investment goals to major purchases such as a house or car.

In contrast, your budget should focus on current living expenses and day-to-day spending. Here are six steps you can take to make sure you set a realistic budget and stick to it:

• Step 1: List all your living expenses.

• Step 2: List flexible and recurring expenses and loan payments.

• Step 3: Add up your after-tax income.

• Step 4: Set financial goals.

• Step 5: Record and track your spending.

• Step 6: Adjust and review your budget to account for growth.

Nobody is born financially savvy, and nobody who becomes financially savvy ever has it all figured out. You need to keep aiming for ways to learn more — and that means seeking advice from people with expertise you might lack.