According to the most recent census, the population of Canada was 36,991,981 – which makes up 0.5% of the global population.
And yet for such a small percentage – we’re actually the most educated nation in the world, with more than half of Canadians holding college degrees. We also have the longest coastline in the world, more lakes than the rest of the globe combined and we’re frequently ranked as one of the top 5 countries in the world for, amongst other things, our quality of life and our sense of social purpose.
All that to say, we have a lot going for us as a nation, but what does life look like for the average Canadian?
Income and outgoings
The most recent data from Statistics Canada showed that the median after-tax income of Canadian families and unattached individuals was $70,500 in 2022.
According to a survey of household spending in 2023, Canadian households were spending $76,750 on goods and services per year.
These figures are likely to have fluctuated in the last two years, but we can still see a clear gap in the amount we’re earning and the amount we’re spending.
Debt
A 2024 report from Trans Union showed that borrowing levels in Canada were increasing in line with an ongoing decrease in interest rates and inflation.
They also noted that the majority of the borrowing increase was down to Millennials and Gen Z, which is probably unsurprising, as younger adults continue to struggle with their finances more than their older counterparts.
The report showed that the average credit card balance in Canada is $4,562, the average auto loan was just under $30,000 and the average mortgage is around $370,000.
It’s worth knowing that mortgages constitute most of the debt for the average household in Canada.
Money worries
With all of this information, it’s clear to see why many Canadians today feel as though they’re earning more, but somehow saving less. In fact, just last year, nearly half of all Canadians reported that rising prices were seriously impacting their ability to meet their day-to-day expenses.
So if money worries have been on your mind, you should know that you’re not alone. And while it’s important to stay on top of your finances and credit commitments, it’s just as important to keep in mind that sometimes, some things are out of your control – and there’s no point in beating yourself up.
So, what’s next?
If you’re one of the many Canadians struggling with their finances, you could try:
Making a budget – this may seem like tired advice, but less than half of all Canadians stick to a budget. So if this is you, go ahead and give it a try – it’s popular advice for a reason.
Get some support – if you feel that your borrowing has gotten out of your control, then seek out some help. The government site has a helpful article on finding a debt counselling service.
We’re firm believers that forewarned is forearmed – so information is key. Protect yourself by getting familiar with your credit report – make sure all the information it holds is correct and up-to-date.
You should also be aware of the terms and interest rates of any credit products you’re considering applying for. Do your research and compare offers from different lenders to make sure you’re getting the best deal for your situation.
Finally, it’s never a bad idea to make sure you understand broader financial trends. The Bank of Canada has some great resources to help get you started. You may think that you don’t really need to know all this – and maybe you’re right! But we know that there’s a connection between financial literacy and better financial outcomes, so we think it’s a good idea for everyone to expand their learning.
After all, we’re the most educated nation in the world; if anyone can do this, we can!