The Canadian economy has seen extreme volatility over the years which has affected the saving culture of Canadians. With more people taking on debt, it also puts their future retirement in question.
The current pandemic is adding to the debt figures and with higher debt comes higher interest rates payments which impact the saving rate of consumers negatively.
Many Canadians were not prepared for what was to come during the pandemic and most did not the amount of savings to cover them for this type of financial emergency.
You might be asking yourself, what do Canadians spend their money on the most?
Besides spending on essential services such as rent, utilities, transportation and food, they also spend on the following items and services.
10. Recreation services
Recreation is an important part of Canadian life as it keeps stress level in check after long days of hard work.
Average household expense: $2,132
Total expenditure: 2.5%
9. Gifts of money, support payments and charitable contributions
Canadians are one of the most charitable people in the world according to The Globe and Mail.
Average household expense: $1,929
Total expenditure: 2.7%
8.Second homes and other accommodation
While some might be able to afford a cottage by the lake others will still need an occasional gate away.
Average household expense: $1,739
Total expenditure: 2%
7.Education
Post-secondary education is one of the biggest and most investments Canadians make throughout their lives.
Average household expense: $1,688
Total expenditure: 2%
6.Tobacco and alcohol
Many Canadians turn to Tobacco and alcohol to cope with the everyday life-related stress.
Average household expense: $1,406
Total expenditure: 1.7%
5. Personal care
Whether its cosmetics for women or grooming kits for men, a little “me time” is considered a necessity.
Average household expense: $1,311
Total expenditure: 1.5%
4.Public transportation
As parking spots are getting more expensive in big cities, most Canadians have found that using public transportation and other transportation methods like uber are much cheaper.
Average household expense: $1,249
Total expenditure: 1.5%
3.Household equipment
Canadians spend a lot of money on household equipment such as washer & drier, fridge and other basic household items.
Average household expense: $1,218
Total expenditure:1.1%
2.Household furnishings
Buying new furniture and home decor is a fun yet expensive part of the Canadian lifestyle when moving into your new home or renting your own place.
Average household expense: $935
Total expenditure: 1.1%
1.Recreation
Many Canadians grow up playing sports and they spend a lot of money on sports equipment such as hockey, soccer, rugby and much more.
Average household expense: $914
Total expenditure: 1%
Source: Slice.ca
