Spinus psaltria, commonly known as the Lesser Goldfinch, is native to the Americas, specifically ranging from the southwestern United States through Central America to northern South America. Its geographical distribution includes countries such as the United States (particularly in the western and southern regions, including California, Texas, and Arizona), Mexico, Guatemala, Belize, Honduras, Nicaragua, Costa Rica, Panama, and parts of northern Venezuela and Colombia.

The Lesser Goldfinch typically inhabits open and semi-open areas, including scrublands, woodlands, suburbs, and gardens. It favors environments that provide ample sunlight and a mixture of trees, shrubs, and open ground. The species is well adapted to dry and arid climates but can also be found at a range of elevations, from sea level up to mountainous regions.

Spinus psaltria primarily feeds on seeds, showcasing a particular preference for those of sunflowers, asters, and other composite plants. Its diet and foraging behavior play a significant role in shaping its habitat choice. The Lesser Goldfinch is an important seed disperser due to its foraging on a variety of wild plant seeds. Its ecological niche encompasses bird communities in which it frequently interacts with other seed-eating species, adding to the dynamic balance of its ecosystem.