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How Much Does The Average Canadian Have Saved?

Saving money is a crucial aspect of achieving financial security and stability. It allows individuals to prepare for emergencies, pursue their goals, and enjoy a comfortable retirement.

However, understanding the financial health and savings habits of the average Canadian is essential for gaining insights into the overall economic well-being of the country.

In this blog, we will explore the question, “How much does the average Canadian have saved?” By examining statistics, identifying challenges, and providing tips for improvement, we aim to shed light on the state of savings in Canada and empower individuals to make informed financial decisions.

How Much Does The Average Canadian Have Saved?

Saving money is an important aspect of personal finance and plays a crucial role in building financial security and achieving long-term goals. Understanding how much the average Canadian has saved provides valuable insights into the overall savings habits and financial health of the population. In this article, we will explore the statistics and factors surrounding the average savings of Canadians.

  1. Statistics on Average Savings: The average amount of savings varies among Canadians based on several factors, including income levels, age groups, and economic conditions. According to recent data, the average Canadian household had a total savings rate of around 2.7% in 2020. However, it’s important to note that this rate can fluctuate significantly from year to year and may have been influenced by the COVID-19 pandemic and its impact on the economy.

Furthermore, studies have shown that a significant number of Canadians do not have enough savings to cover unexpected expenses or emergencies. A survey conducted by the Canadian Payroll Association in 2020 revealed that 36% of Canadians would struggle to meet their financial obligations if their paychecks were delayed by even a single week.

  1. Factors Influencing Savings Habits: Several factors influence the savings habits of Canadians. One major factor is income level. Higher-income individuals tend to have more disposable income, making it easier to save a larger portion of their earnings. On the other hand, lower-income individuals may struggle to meet their daily expenses, leaving little room for savings.

Employment stability is another important factor. Canadians with stable and secure employment are more likely to have consistent income streams and the ability to save regularly. Conversely, those with irregular or part-time employment may find it challenging to save consistently.

  1. Regional Differences in Savings: Savings habits can also vary significantly across different regions of Canada. Metropolitan areas with higher costs of living, such as Vancouver and Toronto, may present greater challenges for individuals to save due to higher housing costs, transportation expenses, and overall higher living expenses. In contrast, individuals in smaller towns or rural areas may have lower living costs, making it relatively easier to save a larger portion of their income.
  2. Impact of Debt Levels on Savings: Debt levels play a significant role in the savings habits of Canadians. High levels of consumer debt, such as credit card debt, student loans, and mortgages, can limit individuals’ ability to save. Debt repayments consume a significant portion of monthly income, leaving less money available for saving and investment purposes.
  3. Lack of Financial Literacy: Lack of financial literacy is another factor that can impact the savings habits of Canadians. Without a solid understanding of personal finance, individuals may struggle to manage their money effectively, make informed financial decisions, and prioritize saving. Financial education and awareness programs can play a vital role in empowering individuals to develop better saving habits and make sound financial choices.

While the average savings of Canadians may vary depending on various factors, it is important to emphasize the importance of saving for financial security and achieving long-term goals. By understanding the factors that influence savings habits and taking proactive steps to improve financial literacy, manage debt, and prioritize saving, Canadians can work towards building a stronger financial foundation and securing a brighter future.

Understanding The Average Canadian’s Savings

Statistics On Average Savings In Canada

Understanding the average savings of Canadians provides valuable insights into the financial landscape of the country. While individual saving habits can vary widely, here are some key statistics that shed light on the average savings in Canada:

  1. Average Personal Savings Rate: As of the latest available data, the personal savings rate in Canada hovers around 3-4% of disposable income. This indicates that, on average, Canadians save a relatively small portion of their earnings.
  2. Household Debt-to-Income Ratio: According to Statistics Canada, the debt-to-income ratio for Canadian households reached a record high of 176.9% in 2020. This suggests that, on average, Canadians have more debt than their annual disposable income.
  3. Retirement Savings: The average Canadian has a modest amount saved for retirement. A study by the Canadian Payroll Association in 2020 revealed that 36% of Canadians felt they were not saving enough for retirement, and only 27% believed they were on track.
  4. Emergency Savings: Many Canadians also struggle with building emergency savings. A survey conducted by the Financial Planning Standards Council in 2020 found that 42% of Canadians had less than $10,000 in emergency savings, while 24% had no emergency savings at all.

These statistics highlight the need for Canadians to prioritize saving and address the challenges they face in building a solid financial foundation. By understanding the average savings in Canada, individuals can assess their own savings habits and take proactive steps to improve their financial well-being.

Factors That Influence Saving Habits

Saving habits can vary significantly among individuals, and several factors contribute to the way people approach saving money. Here are some key factors that influence saving habits:

  1. Income Level: The level of income plays a crucial role in determining saving habits. Individuals with higher incomes generally have more disposable income available for saving, whereas those with lower incomes may find it more challenging to save a significant portion of their earnings.
  2. Cost of Living: The cost of living in a particular region or city can heavily impact saving habits. Areas with higher costs of housing, transportation, and everyday expenses can make it more challenging to save, as a larger portion of income goes towards meeting basic needs.
  3. Financial Knowledge and Education: Financial literacy and education play a significant role in shaping saving habits. Individuals who possess a solid understanding of personal finance concepts, budgeting, and investing are more likely to adopt effective saving strategies and make informed financial decisions.
  4. Life Stage and Responsibilities: Life stage and responsibilities, such as starting a family, buying a home, or paying for education, can influence saving habits. Different life stages come with varying financial priorities and obligations, which can impact the amount individuals can save.
  5. Attitudes and Values: Personal attitudes and values towards money and saving also influence saving habits. Some individuals prioritize immediate consumption and instant gratification, while others place greater importance on long-term financial security and delayed gratification.
  6. Economic Environment: The overall economic environment, including factors like interest rates, inflation, and job security, can impact saving habits. During periods of economic uncertainty, individuals may be more inclined to save as a precautionary measure.

Understanding these factors can help individuals assess their own saving habits and identify areas for improvement. By recognizing the influences on saving habits, individuals can make conscious choices to prioritize saving and develop effective strategies to achieve their financial goals.

Regional Differences In Savings

Savings habits can vary significantly across different regions within a country. In the case of Canada, regional differences can impact the average savings of its residents. Here are some key regional differences in savings observed in Canada:

  1. Urban vs. Rural Areas: Urban areas tend to have higher living costs, including housing, transportation, and daily expenses. As a result, individuals living in urban centers may find it more challenging to save a significant portion of their income compared to those residing in rural areas, where the cost of living is generally lower.
  2. Provinces and Territories: There are notable variations in savings rates among different provinces and territories in Canada. Factors such as employment opportunities, income levels, and economic conditions can influence saving habits. For example, provinces with strong resource-based economies, like Alberta, may have higher average savings due to higher incomes and job opportunities in industries like oil and gas.
  3. Cultural and Social Influences: Cultural and social factors can also contribute to regional differences in savings habits. Some regions may have a cultural emphasis on saving for future generations or a history of frugality, which can influence saving behaviors. Additionally, social norms around spending and saving can vary, impacting individual and community savings rates.
  4. Housing Market Variations: Regional disparities in the housing market can affect savings. Areas with high housing costs, such as Vancouver or Toronto, may require a larger portion of income to be allocated towards housing expenses, leaving less disposable income available for saving. In contrast, regions with more affordable housing options may allow residents to allocate a larger portion of their income towards savings.

It’s important to note that regional differences in savings are influenced by a combination of factors, and individual circumstances can vary widely within each region. Understanding these regional differences can help individuals contextualize their own savings habits and make adjustments accordingly. Regardless of the region, adopting smart saving strategies and managing personal finances effectively are crucial for long-term financial well-being.

Challenges To Saving In Canada

High Cost Of Living

The cost of living refers to the amount of money needed to sustain a certain standard of living in a specific location. In many regions, including some areas of Canada, the cost of living can be significantly higher compared to other parts of the country. Here are some key points regarding the high cost of living:

  1. Housing Expenses: One of the primary contributors to the high cost of living is housing expenses. In major cities like Vancouver and Toronto, housing prices have surged in recent years, making it challenging for individuals and families to afford suitable accommodation. High rent or mortgage payments can consume a substantial portion of one’s income, leaving less available for savings or other expenses.
  2. Transportation Costs: Another significant factor contributing to the high cost of living is transportation. In urban centers, commuting costs, parking fees, and public transportation expenses can quickly add up. Additionally, the cost of owning and maintaining a vehicle, including fuel, insurance, and repairs, can be considerable.
  3. Basic Necessities: The prices of basic necessities, such as groceries, utilities, and healthcare, can vary across regions. Higher costs for these essential items directly impact the cost of living. In areas with a higher cost of living, individuals may need to allocate a larger portion of their income to cover these everyday expenses, leaving less room for saving.
  4. Lifestyle and Entertainment: High-cost regions often come with increased expenses for entertainment, dining out, and recreational activities. This can make it more challenging for individuals to save, as discretionary spending on non-essential items may be limited due to the higher costs associated with the local lifestyle.
  5. Impact on Savings: The high cost of living can directly impact an individual’s ability to save. When a significant portion of income goes towards essential expenses, there may be limited funds available for saving or investing. This can make it more challenging for individuals to build a substantial emergency fund, save for retirement, or achieve other financial goals.

Navigating the high cost of living requires careful budgeting, prioritization of expenses, and potentially exploring ways to increase income or reduce costs. It is essential for individuals to evaluate their spending habits, seek out cost-saving strategies, and consider long-term financial planning to mitigate the impact of the high cost of living on their savings and overall financial well-being.

Debt Levels And Impact On Savings

Debt levels can significantly impact an individual’s ability to save and accumulate wealth. Here are some key points regarding debt levels and their impact on savings:

  1. High Debt Payments: When individuals have high levels of debt, a significant portion of their income may go towards making debt payments. Whether it’s credit card debt, student loans, car loans, or mortgages, the monthly debt obligations can leave limited funds available for saving. This can hinder one’s ability to build an emergency fund, contribute to retirement accounts, or save for other financial goals.
  2. Interest Payments: Debt comes with interest charges, which further reduce the amount of money available for saving. The more debt an individual carries, the higher the interest payments they must make. These interest charges can add up over time and eat into potential savings.
  3. Opportunity Cost: The money used to pay off debts could have otherwise been invested or saved for future use. Debt payments not only limit immediate savings but also prevent individuals from taking advantage of compounding interest and potential investment returns. This opportunity cost can hinder long-term wealth accumulation.
  4. Financial Stress and Uncertainty: High debt levels can cause financial stress and uncertainty, which can further impact one’s ability to save. Individuals burdened by debt may have to prioritize immediate financial obligations, leaving little room for long-term savings. Financial stress can also lead to a cycle of borrowing to meet daily expenses, exacerbating the debt burden and hindering savings even further.
  5. Limited Access to Credit: Excessive debt and poor credit history can limit an individual’s ability to access credit or obtain favorable terms for future loans. This can make it challenging to borrow money for emergencies or investments, further emphasizing the importance of having adequate savings.

To mitigate the impact of debt on savings, it is crucial to develop a debt repayment strategy, prioritize high-interest debts, and budget effectively to free up funds for saving. Seeking financial advice, exploring debt consolidation options, and considering debt reduction strategies can also help individuals regain control of their finances and improve their savings potential. By reducing debt and managing it effectively, individuals can free up financial resources to build a solid savings foundation and work towards their long-term financial goals.

Lack Of Financial Literacy

Financial literacy refers to the knowledge and understanding of personal finance concepts and skills necessary to make informed financial decisions. Unfortunately, a lack of financial literacy is a significant challenge that can impact an individual’s ability to save effectively. Here are some key points regarding the lack of financial literacy:

  1. Limited Understanding of Financial Concepts: Many individuals lack a basic understanding of fundamental financial concepts such as budgeting, saving, investing, and debt management. Without this knowledge, individuals may struggle to make informed decisions about how to allocate their income towards savings or identify appropriate investment opportunities.
  2. Poor Money Management Skills: Financial literacy includes essential money management skills such as budgeting, tracking expenses, and setting financial goals. Without these skills, individuals may find it difficult to prioritize savings or manage their finances effectively, leading to inadequate savings and potentially falling into debt.
  3. Lack of Awareness of Available Resources: Financial literacy involves being aware of the resources and tools available to manage personal finances. This includes understanding how to access and utilize banking services, retirement savings plans, tax-advantaged accounts, and other financial instruments. Without this knowledge, individuals may miss out on opportunities to optimize their savings or fail to take advantage of programs that could benefit their financial well-being.
  4. Vulnerability to Financial Scams: Lack of financial literacy can leave individuals vulnerable to financial scams and predatory practices. Without the ability to identify red flags and make informed decisions, individuals may fall victim to fraudulent schemes or make poor financial choices that deplete their savings.
  5. Intergenerational Impact: Financial literacy is often passed down through generations. If individuals are not exposed to financial education or lack positive role models who prioritize savings and financial responsibility, the cycle of limited financial literacy can continue, impacting future generations’ ability to save effectively.

To address the lack of financial literacy, individuals can take proactive steps to improve their understanding of personal finance. This may include seeking out educational resources, attending financial literacy workshops, or working with financial advisors who can provide guidance. Additionally, governments, educational institutions, and community organizations can play a crucial role in promoting financial education and providing accessible resources to improve financial literacy at a broader level. By enhancing financial literacy, individuals can gain the knowledge and skills needed to make informed financial decisions, including effective saving strategies.

Tips For Improving Savings

Setting Financial Goals

Setting financial goals is an essential step towards achieving long-term financial stability and building a solid savings foundation. Here are some key points regarding setting financial goals:

  1. Identify Priorities: Begin by identifying your financial priorities and what you want to achieve. This could include short-term goals such as building an emergency fund or saving for a vacation, as well as long-term goals like purchasing a home, funding education, or planning for retirement. Clearly defining your priorities will help you establish specific goals to work towards.
  2. Make Goals SMART: When setting financial goals, it’s beneficial to follow the SMART framework – Specific, Measurable, Achievable, Relevant, and Time-bound. Ensure that your goals are clear and well-defined, quantifiable so that you can track your progress, realistic given your current financial situation, relevant to your overall financial objectives, and set with a specific timeframe for completion.
  3. Break Down Goals: Break down larger financial goals into smaller, manageable milestones. This allows you to track your progress and stay motivated along the way. For example, if your goal is to save $10,000 for a down payment on a home in two years, break it down into monthly or quarterly savings targets.
  4. Track and Adjust: Regularly track your progress towards your financial goals. This can be done through budgeting, tracking expenses, and monitoring your savings growth. Review your goals periodically and make adjustments if necessary. Life circumstances and financial situations can change, so it’s important to reassess and modify your goals accordingly.
  5. Stay Motivated: Maintaining motivation is crucial when working towards financial goals. Find ways to stay motivated, such as visualizing the end result, celebrating milestones achieved, or seeking support from friends or family. Regularly remind yourself of the benefits and rewards that achieving your financial goals will bring.
  6. Seek Professional Advice: If needed, consider seeking guidance from a financial advisor. They can provide valuable insights, help you develop a personalized financial plan, and offer strategies to achieve your goals more effectively.

By setting clear and realistic financial goals, individuals can focus their efforts, develop saving habits, and make conscious financial decisions that align with their objectives. Having well-defined goals provides a sense of purpose, motivation, and direction in managing personal finances, ultimately leading to greater financial security and success.

Creating A Budget And Tracking Expenses

Creating a budget and tracking expenses are fundamental steps towards managing personal finances effectively and achieving financial goals. Here are some key points regarding creating a budget and tracking expenses:

  1. Assess Income and Expenses: Start by evaluating your income sources and understanding your fixed and variable expenses. Fixed expenses include recurring payments such as rent or mortgage, utilities, and loan repayments, while variable expenses encompass discretionary spending like entertainment, dining out, and shopping. Gathering this information will provide a clear picture of your financial situation.
  2. Set Spending Categories and Limits: Categorize your expenses into different categories, such as housing, transportation, groceries, entertainment, and savings. Allocate a realistic spending limit for each category based on your income and financial goals. Ensure that your expenses do not exceed your income to maintain a balanced budget.
  3. Track Every Expense: Track your expenses diligently by recording every transaction, whether it’s cash, debit card, or credit card purchases. Use a notebook, a spreadsheet, or a budgeting app to track your spending. Regularly review your spending patterns to identify areas where you can cut back and redirect funds towards savings.
  4. Identify Needs vs. Wants: Distinguish between essential needs and discretionary wants. Prioritize your needs while being mindful of your wants. This will help you make informed decisions when allocating your funds and ensure that your essential expenses are covered before indulging in non-essential purchases.
  5. Review and Adjust: Regularly review your budget and expenses to see if you are staying on track. Assess if any adjustments need to be made based on changes in income, expenses, or financial goals. Be flexible and willing to make necessary changes to ensure that your budget remains realistic and effective.
  6. Find Budgeting Tools: Utilize various budgeting tools and apps available that can simplify the process of creating a budget and tracking expenses. These tools often provide visualizations, spending trends, and reminders to help you stay accountable and manage your finances more efficiently.
  7. Establish an Emergency Fund: As you track your expenses and create a budget, prioritize building an emergency fund. Set aside a portion of your income each month to create a financial safety net that can cover unexpected expenses or financial setbacks without derailing your budget or savings goals.

Creating a budget and tracking expenses is an ongoing process that requires discipline and regular monitoring. By gaining a clear understanding of your income and expenses, you can make informed decisions, identify areas for improvement, and work towards your financial goals effectively.

Utilizing Tax-Advantaged Savings Accounts

Tax-advantaged savings accounts are financial tools that offer individuals various tax benefits when saving for specific purposes. Here are some key points regarding the utilization of tax-advantaged savings accounts:

  1. Registered Retirement Savings Plan (RRSP): An RRSP is a tax-advantaged savings account available to Canadian residents to save for retirement. Contributions made to an RRSP are tax-deductible, meaning they can be deducted from taxable income, reducing the overall tax liability. Additionally, any investment income or capital gains earned within the RRSP are tax-sheltered until withdrawals are made during retirement when individuals may be in a lower tax bracket.
  2. Tax-Free Savings Account (TFSA): A TFSA is a flexible savings account that allows individuals to contribute funds on an after-tax basis. While contributions are not tax-deductible, any investment growth, dividends, or capital gains earned within a TFSA are tax-free. Withdrawals from a TFSA are also tax-free, providing individuals with the opportunity to save and invest without incurring tax liabilities.
  3. Registered Education Savings Plan (RESP): An RESP is a tax-advantaged savings account designed to save for a child’s post-secondary education. Contributions made to an RESP are not tax-deductible, but the investment income earned within the account grows on a tax-deferred basis. When the beneficiary of the RESP enrolls in a qualifying educational program, the accumulated income and grants can be withdrawn and taxed in the hands of the student, typically at a lower tax rate.
  4. Health Savings Accounts (HSA): Although Health Savings Accounts are not specific to Canada, they are worth mentioning as they are common in other countries such as the United States. HSAs allow individuals with high-deductible health insurance plans to save for medical expenses on a tax-advantaged basis. Contributions made to an HSA are tax-deductible, and withdrawals used for qualified medical expenses are tax-free.

By utilizing tax-advantaged savings accounts, individuals can optimize their savings by minimizing their tax burdens. These accounts provide opportunities to grow wealth while taking advantage of the tax benefits offered by the government. However, it is essential to understand the specific rules, contribution limits, and eligibility criteria associated with each type of account to maximize their benefits effectively. Consulting with a financial advisor can provide personalized guidance on how to leverage these tax-advantaged savings accounts based on individual circumstances and financial goals.

Seeking Professional Financial Advice

Seeking professional financial advice is a valuable step in managing personal finances and making informed decisions about saving, investing, and achieving financial goals. Here are some key points regarding seeking professional financial advice:

  1. Expertise and Knowledge: Financial advisors possess expertise and knowledge in various aspects of personal finance, including budgeting, investing, retirement planning, tax strategies, and more. They stay up-to-date with the latest market trends, regulations, and financial products, allowing them to provide informed guidance tailored to individual circumstances.
  2. Personalized Financial Plan: A financial advisor can help create a personalized financial plan based on your unique goals, risk tolerance, and time horizon. They can assess your current financial situation, evaluate your savings and investment strategies, and provide recommendations on how to optimize your financial resources to achieve your objectives.
  3. Objective Perspective: Financial advisors offer an objective perspective on your financial situation. They can help you identify blind spots, uncover potential risks, and highlight opportunities you may not have considered. Their unbiased advice can help you make well-informed decisions that align with your goals, rather than being swayed by emotions or short-term market fluctuations.
  4. Investment Guidance: Investing can be complex, and a financial advisor can provide guidance on building an investment portfolio that suits your risk profile and goals. They can help diversify your investments, manage risk, and provide ongoing monitoring and adjustments as needed. Their expertise can help you navigate through the complexities of investment options and optimize your returns.
  5. Financial Education: Working with a financial advisor can provide you with a valuable education in personal finance. They can explain complex financial concepts, help you understand the implications of various strategies, and empower you to make more informed financial decisions. Over time, this knowledge can enable you to manage your finances more independently and confidently.
  6. Long-Term Planning: Financial advisors can assist in long-term financial planning, including retirement planning, estate planning, and tax planning. They can help you establish realistic goals, develop strategies to achieve them, and adapt your plan as your circumstances change over time. Their holistic approach ensures that all aspects of your financial well-being are considered.

When seeking professional financial advice, it’s essential to choose a reputable advisor who is qualified and licensed. Look for certifications such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) and consider their experience, reputation, and fees. Remember that financial advisors work for you, so it’s important to ask questions, clearly communicate your goals, and ensure that the advice provided aligns with your best interests.

While professional financial advice comes with a cost, the potential benefits, peace of mind, and potential for improved financial outcomes often outweigh the associated fees. A financial advisor can provide personalized guidance, support, and expertise to help you make the most of your financial resources and work towards a secure and prosperous future.


In conclusion, understanding the average savings of Canadians provides valuable insights into the financial landscape and individual financial well-being. While the data indicates that many Canadians struggle to save adequately, it is important to remember that savings habits can vary widely based on various factors.

Factors such as income levels, employment stability, regional differences, debt levels, and financial literacy all contribute to the average savings of Canadians. High living costs, especially in metropolitan areas, can pose challenges to saving, while debt levels can hinder individuals’ ability to accumulate wealth. Lack of financial literacy can also impede effective saving strategies, making it crucial for individuals to seek education and guidance to improve their financial knowledge and habits.

However, it is essential not to lose sight of the opportunities and strategies available for individuals to improve their savings habits and financial outlook. Setting financial goals, creating a budget, tracking expenses, and utilizing tax-advantaged savings accounts are key steps that can empower individuals to save more effectively and work towards their financial objectives. Seeking professional financial advice can provide personalized guidance, ensuring that individuals receive expert recommendations tailored to their unique circumstances.

It is also important to emphasize the significance of cultivating a savings mindset and making savings a priority. By adopting disciplined saving habits and making intentional choices about spending and saving, individuals can build a solid financial foundation, create an emergency fund, and work towards long-term goals such as homeownership, retirement, or education.

While the average savings of Canadians may reflect challenges faced by individuals, it is crucial to remember that these statistics are not fixed and can be improved through individual action and systemic support. Improving financial literacy through education, providing accessible resources and tools, and fostering a culture of saving are essential steps towards empowering Canadians to save more effectively and achieve greater financial security.

Ultimately, everyone’s financial journey is unique, and it is important to focus on personal progress and growth. By taking control of their finances, individuals can overcome challenges, build resilience, and work towards a future where saving becomes a natural and rewarding part of their financial lives. With determination, education, and proactive steps towards financial well-being, Canadians can make significant strides in improving their savings and securing a brighter financial future.