"Average Household" Is Fine-but Where Am I?"
It's all well and good to talk about the average Canadian household, but the nitty-gritty of personal finances depends on actual household income and circumstances. For people living in Vancouver or Toronto, for example, housing will be a bigger expense than for someone living in a smaller community.
Similarly, for low income households, the cost of shelter, food and other essentials is disproportionately high: food and shelter account for a full one half of spending by Canada's lowest income households.
- Annual expenditure of the fifth of Canadian households with the lowest income averaged $18,090 (compared with $113,030 for the fifth of households with the highest incomes).
- Sheltercost this lowest-income group of households 31% of their expenditures.
- Food cost them 18% of their expenditures.
- Transportation cost them 12% of their expenditures.
| Lowest quintile* | Second quintile* | Third quintile* | Fourth quintile* | Highest quintile* | |
|---|---|---|---|---|---|
| Food | 18% | 15% | 13% | 11% | 9% |
| Shelter | 31% | 24% | 20% | 18% | 15% |
| Transportation | 12% | 14% | 15% | 14% | 13% |
| Personal taxes | 3% | 11% | 16% | 21% | 30% |
* Each of the four values that divide the items of a frequency distribution into five equal classes.
Location Matters
Where you live also affects your expenditures.
- In 2000, Ontario and Alberta households had the highest average expenditures of all provinces.(Figures)
- Newfoundland had the lowest average, $43, 320.
| Year | 1999 | 2000 |
|---|---|---|
| Ontario(1) | $58,780 | $62,740 |
| Alberta(1) | $59,210 | $62,090 |
| British Columbia | $54,970 | $55,670 |
| Manitoba | $49,410 | $50,360 |
| Nova Scotia(1) | $45,850 | $48,620 |
| Québec | $46,870 | $48,320 |
| New Brunswick(1) | $44,730 | $47,090 |
| Saskatchewan | $46,900 | $46,970 |
| Prince Edward Island | $45,400 | $45,080 |
| Newfoundland | $42,510 | $43,240 |
1 Statistically significant change between 1999 and 2000.
See also "Average household expenditures, by selected metropolitan areas"
| Average expenditure 1998 | Share of budget 1998 | Average expenditure 1999 | Share of budget 1999 | Average expenditure 2000 | Share of budget 2000 | |
|---|---|---|---|---|---|---|
| Total expenditure | 51,170 | 53,450 | 55,830 | |||
| Personal taxes | 10,820 | 21 | 11,560 | 22 | 12,010 | 22 |
| Shelter | 10,070 | 20 | 10,240 | 19 | 10,500 | 19 |
| Transportation | 6,400 | 12 | 6,880 | 13 | 7,580 | 14 |
| Food | 5,900 | 12 | 6,100 | 11 | 6,220 | 11 |
| Recreation | 2,920 | 6 | 2,960 | 6 | 3,170 | 6 |
| Personal insurance payments and pension contributions | 2,760 | 5 | 2,840 | 5 | 3,130 | 6 |
| Household operation | 2,350 | 5 | 2,410 | 5 | 2,520 | 5 |
| Clothing | 2,200 | 4 | 2,320 | 4 | 2,350 | 4 |
| Household furnishings and equipment | 1,480 | 3 | 1,480 | 3 | 1,560 | 3 |
| Gifts of money and contributions | 1,150 | 2 | 1,360 | 3 | 1,300 | 2 |
| Health care | 1,190 | 2 | 1,260 | 2 | 1,360 | 2 |
| Tobacco products and alcoholic beverages | 1,210 | 2 | 1,180 | 2 | 1,220 | 2 |
| Miscellaneous expenditures | 810 | 2 | 860 | 2 | 830 | 1 |
| Education | 710 | 1 | 760 | 1 | 830 | 1 |
| Personal care | 690 | 1 | 710 | 1 | 740 | 1 |
| Reading materials and other printed matter | 280 | 1 | 270 | 1 | 280 | 0.5 |
| Games of chance expense (net) | 250 | 0.5 | 270 | 0.5 | 260 | 0.5 |
Households spent an average of $55,830 in 2000 on everything from shelter to travel, allocating more to vehicle purchases and energy costs than in previous years. On average, households spent about 4% more in 2000, a year of strong economic growth. The increase in household spending marginally exceeded the Consumer Price Index (CPI) inflation rate of 3% in 2000.
Personal taxes accounted for an estimated 22% of the household budget, shelter costs claimed about 19%, and food, 11%. These proportions were virtually unchanged from 1999. Transportation took up 14% of the household budget, continuing the slight increase seen in 1999.
