Canadian Dreaming

The average price of a Canadian home is now $330,000 and that is almost incomprehensible to me, especially when the average Canadian makes $40,000 before taxes.

Historically we used to buy homes that were 3 times our gross income. Not anymore. Instead we have a relatively new phenomenon…household income.

The days of the stay at home mother are impossible for the vast majority so you now have 2 full-time workers that manage to push the average household income to $70,000 in our gingerbread house economy.

Let’s play the game shall we? It’s called an Average Canadian Household Budget.

Gross income: $70,000 Average Family (2 adults and 2 kids)

Taxes: ($10,000) - Healthcare isn’t free anywhere. Neither are Schools,Cops, Firemen, paved roads, garbage collection. ..

Car: ($9000) –Insurance, repairs and gas (as long as you don’t commute) included but you only get 1 Honda for the both of you.

Food: ($11000) -That is $7.50 per head per day! Steak is like a UFO on this plan…only specious claims of seeing one have been made.

Clothes: ($2500) – No power suits or catwalks here. Actually not even a Sears catalogue “look-away” pose.

Vacation : ($2500) – Come on…you have to give us at least 1 week away at a crummy all inclusive. Our weather sucks. Kids stay behind L

Savings: ($5000) – You are never going to be able to afford anything without savings. Also retirement needs to factor in and don't forget a rainy day back up fund (1 in 13 Unemployed Canadians know this). 40 years ago we used to save 10% but now 7% would be a John Lennon anthem.

Xmas/Birthdays: ($1000) –Peoples is your jeweler and you might go once every 5 years.

Entertainment: ($5000) - A dinner and a movie the odd time with a glass of wine and some wings and beer for the game. Aren’t we at the very least adults?!

Hair Salons and Tanning: ($1000) -It’s SuperCuts and pasty for us!

Electronics: ($1000) – This is a desktop every 5 years with the odd iPod and 32” TV. Not blazing a tech trail with this kind of money.

Gym Membership ($0) –Sit ups and push ups are more in our price range.

Cell Phone: ($1000) –You’ll each need one and no LD calls or Cadillac plans. Oh and never one for the kids….hollering will suffice.

Cable/Internet: ($1200) – Your life is basic cable.

Make Up, Sports Equipment, Concerts, Golfing, Weekend Trips, Shoes (this is for you ladies), Bedding, Small Appliances (irons, toasters, hair dryers, etc.), luggage, car wash, car seats, and the list goes on and on and on : ($2500) – I’m almost ashamed to put this number so low. A lot of hand-me-downs on this budget as name brands are for the rich.

Pets: ($1000) –Let us hope there are no serious Vet bills or else Rover won’t make it.

2 Children: ($3000) –This is a tough number to nail down admittedly and can swing violently up if you want them to go to University. Oh and forget daycare. Grandma better live close by and be available 50 hours a week.

Whew!

Ok now how much do we have left for a little thing called Shelter?

$525.00 per month.

You also have to still pay for heat, hydro, repairs, maintenance, lawn mowers, furniture, appliances, insurance, etc. etc. etc.

The average property tax for a home in Barrie is now $300 per month alone!

The conclusion?

The average Canadian can’t even subsist. Instead they have $0 savings (Imagine that John Lennon) and use that money to merely approach the lifestyle I envision the average family to have.

Next time someone tells you families nowadays have it too good…smack them.

Next time a politician tells you a tax increase is “no big deal” because it only works out to $1.50 per day (“ the price of a cup of coffee” one famously said) try and wake them up. Christ! In this scenario it’s 20% of what we are spending to feed a person!

If the average household somehow managed to cut expenses drastically enough to own a home and not go in debt that would be miraculous. If they could further cut expenses to realize the herculean task of actual savings (say 3%) then your “coffee” tax erases a third of that effort! I guess "Live like shit and work till you die" is the motto you are assigning the masses.

Here is another number. The average Canadian Male in 1968 (taking in taxation and inflation) made DOUBLE what the average Canadian Male makes today!

The average Canadian today is not greedy. Not careless. Not lazy. They are overworked and underpaid with no light at the end of the tunnel.

I need a drink! Oh and we need some real leaders because this shit…is not going to fix itself.