Quote:
Originally Posted by Weitz
What things though? Average family income in Calgary is roughly (most recent I could find is 2016) $140,XXX. Median (in 2018) was $102,XXX. That seems more than enough to buy average things?
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Very quick math here.
$120,000 salary = $7700/month after tax
Average 3 bedroom detached home = $512,000 = $2200/month
Property taxes = $250/month
Average new vehicle = $40,000 = $600 lease
Child care for 2 children = $2400
Bills including TV, internet, phone, heat, water, sewage, etc. = $700
Grand total of $6150, leaving the family with just over $1500 per month for groceries, gas, savings, gym memberships, RRSPs, RESPs, paying off student loans and other debt.
That's about $350 per adult, per 2 week pay period for "discretionary" spending.
Sure.... it's doable. But it doesn't leave much room for daily coffee and avocado toast.
What ends up happening in a situation like this is things get cut out. Maybe the kids stay with their grandparents instead of daycare. Or maybe the family keeps driving their 15 year old beater. Or maybe they just say "fk it, we'll just keep accumulating debt, because what's the point?"
And this is in Calgary, where things are relatively cheap. Imagine living in Toronto or Vancouver, where average incomes are about 80% of what they are here and housing and child care are twice as expensive. No matter how many new TVs and vacations you tell yourself you won't purchase, it's not going to make any difference whatsoever.