Millions of Americans don't have bank accounts. Here's where they live.

Photo Illustration by Stacker // Shutterstock Most financial experts agree that the best time to start using a credit card is 18, as long as one is equipped with the financial education to tackle the responsibility of taking on debt. The sooner someone can begin building a history with banks, the better. In a country where taking part in the banking system is a necessary tool for economic opportunity, about 1 in 25 Americans still don’t participate. Who are they, and why don’t they manage their finances with banks? These adults who don’t use traditional credit cards, savings, or debit accounts are known as the “unbanked.” Spokeo analyzed data from the Federal Deposit Insurance Corporation to illustrate where in the U.S. the most unbanked Americans live. About 4.2% of Americans were considered unbanked in 2023, according to survey data the FDIC released in November. Not using banking services can be expensive and time-consuming. Researchers at the Federal Reserve have referred to being unbanked as “financial exclusion.” Access to banking services can provide the resources to turn ideas into businesses. Banks offer accounts for storing wages and building financial security through savings. They also lend money to entrepreneurs, which creates jobs and benefits communities. Living without access to the services banks provide means consumers are left to deal with more predatory financial institutions, including payday lenders, check cashing, and title loan companies, where consumers pay much higher interest rates than they would if they used banks. Single mothers are more likely to be unbanked than single fathers, but single men without families are more likely to be unbanked than single women without families. There is also a geographic difference in unbanked rates, with people living outside of dense metropolitan areas less likely to use banking services, though that gap has narrowed in the past several years. Since the 1980s, the share of unbanked individuals in the U.S. has declined. Most recently, it’s fallen from 5.4% in 2019 to 4.2% in 2023–a sign that Americans continue to recognize the banking system’s value. Still, in an era where nearly anyone can trade stocks in seconds on their cell phone, millions of Americans are still missing out on the value of participating in the banking system. Education level, race and ethnicity, and income are the biggest factors determining whether a person is more likely to use banking services. Differences in unbanked rates between Black or Hispanic households and white households exist at every income level, according to the FDIC. A disadvantage inextricably linked to race