A new Statistics Canada study says Canadian households spent an average of $66,860 in 2005, up 5.1 per cent from the year before. The study says strong energy prices are to blame for the increase, but some of the other ways that Canadians are spending money may be a bit surprising.
For example, 80 per cent of households reported having a DVD player in 2005. Statscan says that since DVD players were first reported by 20 per cent of households in 2001, they have become the most rapidly adopted new device since television was introduced in the 1950s.
Although house prices have been booming in Canada during the last five years, average spending on shelter increased by just three per cent, to $12,610 in 2005. This was mostly because of a five per cent increase in the cost of energy. Spending on natural gas was up eight per cent to $630, and electricity costs rose three per cent to $1,100. There was also a six per cent increase in property taxes, which rose to an average of $1,530.
Households with mortgages spent an average of $19,320 on shelter, and the average mortgage payment was $10,730. Those without mortgages spent $8,420, which was 12 per cent of their total household expenses. Renters spent an average of $8,720 on shelter, or 22 per cent of their total expenditures.
Not surprisingly, the lower the income of the household, the more of its budget is spent on shelter. The study divided all households into five categories based on income. The lowest income group averaged 1.3 people per household, and spent 29.9 per cent of their budgets on shelter. The highest income group, averaging 3.4 members per household, spent only 15 per cent of their budgets on shelter. For the two highest income groups, more money was spent on personal taxes than any other category, while for the three lowest income groups, shelter took up the largest share of the budget.
The lowest income group spent almost 51 per cent of their budget on food, clothing and shelter, while the highest income group spent about 27 per cent of their budgets on food, clothing and shelter. The other major spending category was transportation, which accounted for 12.2 per cent of the lower income group's budget and 12.8 of the highest income group's budget.
Some other interest items from the Statistics Canada study:
- A record 28 per cent of households bought new computer hardware in 2005. More than seven out of 10 households reported owning a computer. Spending on Internet access was up by 15 per cent, to an average of $240. The proportion of households reporting high-speed access grew to 50 per cent. Only 14 per cent of households had dial-up access.
- Spending on digital cameras, which rose by 60 per cent in 2004, was up another seven per cent in 2005.
- Cell phone and other wireless services showed an increase of 21 per cent from 2004. Spending for conventional landline telephone service dropped three per cent. About four in 10 Canadian households had one cell phone in 2005, while 19 per cent had two cell phones and seven per cent had three or more.
- Satellite television receivers were being used by 23 per cent of households. About 65 per cent subscribed to cable television, down from 66 per cent in 2004 and 68 per cent in 2001. Canadian households spent an average of $106 going out to movies in 2005, and $280 on games of chance.
- Canadians spent an average of $620 on tobacco products in 2005, down 10 per cent from 2004 and 24 per cent less than what was reported in 1992. Homeowners spend more money on tobacco and alcohol than renters.
- Homeowners spent an average of $2,330 on furniture and equipment in 2005, compared to $1,000 spent by renters.
- The biggest spenders are in the Northwest Territories, who spent $89,730 per household. The Northwest Territories also spent the most for shelter, at $17,690 per household.
- Ontario, Alberta and British Columbia also spent more than the national average.
- Albertans spent the most on live performing arts, at an average of $119 per household. B.C. residents spent the most on live sporting events.
- Urban households spent an average of $13,000 on shelter, compared to $9,660 for rural households.
