There’s no magic formula for being financially savvy, but there’s 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.
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.
1. You Seek Out the Highest APYs and Best Interest Rates
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. 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. Savings accounts with the highest interest rates will grow your money faster.
GOBankingRates consistently researches to find the best 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
Read Next: How Much Should the Average Middle-Class Baby Boomer Have in Savings?
For You: 6 Safe Accounts Proven To Grow Your Money Up To 13x Faster
2. You Take the Time To Plan and Budget
Making a financial plan and establishing a monthly budget might be the two most important actions of financially savvy people. You should consider 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.
3. You Seek Financial Advice From the Right People
Nobody is born financially savvy, and nobody who becomes good with money 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.
It’s important to consult with professional financial advisors who can recommend investment strategies, savings plans and debt management to help you reach your goals. This can include helping you navigate everything from opening the right retirement accounts to paying off high-interest credit card balances faster.
4. You Steer Clear of Unnecessary Debt
One thing financially savvy people have in common is that they don’t bury themselves under a mountain of debt they can’t afford to pay off. The road to financial ruin often begins with maxing out your credit cards to buy stuff you otherwise couldn’t afford.
This leads to a vicious cycle of paying only the minimum on your debt each month to free up extra cash for essential bills, which racks up additional interest and makes it even harder to climb out of debt.
5. You Find Other Income Streams
Making responsible money moves isn’t only about spending and budgeting wisely; it also means figuring out how to earn extra cash beyond the paycheck from your primary job. This can come in many different forms, such as side gigs or passive income streams.
However, one of the most popular ways to build wealth is to simply put a percentage of your income into investments such as stocks, bonds, mutual funds and real estate.
6. You Don’t Waste Money on Impulse Buys or Luxuries
Impulse purchases can make a bigger dent in your monthly budget than you may realize. Financially savvy people don’t have the poor spending habits of an impulse shopper. Not maxing out your credit card and sticking to your goals puts you a financial foot ahead of many consumers.
Here are a few ways to avoid impulse buying and stay savvy with your cash flow:
- Don’t lean into retail therapy and the love of shopping.
- Deal-seeking is great, but don’t mistake the crave of the save for actually saving money.
- Know that you’re not missing out if you don’t buy an item that you don’t need.
- Stockpiling items is one step away from hoarding. Only buy things for which you’ve budgeted.
- Don’t overestimate how much you will use a product you purchase.
Final Take To GO
Making better money moves throughout your financial journey isn’t something that just happens. It’s often the result of hard work, a thirst for knowledge and dedication to making wise decisions. Employ some of these tips today to become that much more financially savvy.
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: 6 Key Signs You’re Making Better Money Moves Than the Average American
