Calculating Annual Cost and Spending Habits in Canada
Most of us are fond of making small purchases for items that we don’t even need much. Unconsciously, these small purchases can add up to our expenses. Through calculating your annual spending helps you realized how these small purchases can impact your budget and ability to save. When you’re wise enough to prioritize your expenses, you can free-up certain funds that you can save. By doing so, you can use this money to pay off your debts and its interest.
In This Guide...
Household Spending Trends
The annual average of household expenses in Canada amounts to $62,183; these expenses include goods and services from an array of clothing up to communications. This trend was evident in the year 2016, up to 2.8% yearly average from 2015
The spike was triggered by the increasing average of annual spending by the household of Ontario and Quebec. Ontario household spending reach up to $66,220 (+5.6%), while Quebec households garner approximately $52,447 (+4.5%).
Moreover, households in Canada have an average of $18,032 in terms of shelter and a $16,293 average when it comes to their principal residence. Also, other accommodations such as secondarily owned residences and hotel garner about $1,739 and $11,909 average when it comes to transportation.
Furthermore, there is also a large part of the expenses that are triggered by private transportation costing to $10,660. When it comes to food bought in stores and restaurants, Canadian household yields an average of $8,784 as a whole.
Income and household consumption
If you have a higher income, there is a big probability of spending higher. In Canada, 20% of the households that have the lowest incomes spent $30,985 average on goods and services while those that are above 20% are at $105,288 for the year 2016. In terms of shelter expenses, those in the lowest income spent $10,876 while $28,796 with the highest.
Although both groups spent equally in their total consumption on food, the expenses in transportation vary. Regularly, households with the lowest income garner a $4,204 on transportation, those with the highest income spent $20,962.
Consumption patterns vary according to household composition
Consumption trends differ when it comes to household composition. Census revealed that one-person households shifted the most prevalent type of household debt in Canada for the first time in 2016, exceeding several households with dependents.
Households across Canada spend their money differently
As per provinces, Alberta households are ($74,044) proclaimed as the costliest average for goods and services. In contrast, New Brunswick ($50,175) spent the least. Besides, the largest share of expenditure used on the shelter was recognized in Ontario households (30.9%) and British Columbia (30.0%).
On the other hand, Newfoundland and Labrador households consumed the least percentage on shelter (23.7%). Moreover, Alberta households ($15,318) and Saskatchewan ($14,522) consumed the largest on transport amidst all the provinces, while Quebec households ($9,652) spent the least.
Steady increase in the cell phone and home Internet usage of Canadian households
Landline telephones were replaced by cellular telephones being the common type of telephone in most Canadian households. Also, the method that the households utilized to connect to the Internet varied by province. Overall, there is a constant spike in cell phones and home internet usage in Canadian households and provinces.
