Canadian Income Classes

Monday, May 05, 2008 | 0 comments »

Wondering what StatCan income class you are. These are the definitions and figures.

There are two categories used to measure personal wealth. The first is net worth, and the second is net income.

Net worth is the amount of money that you have acquired. It is the sum of all of your assets minus the sum of all of your debts. If an individual has $20,000 in a bank account, a car worth $10,000, a home mortgage of $400,000 of which $10,000 is paid, his net worth is $40,000. He might owe $390,000 on his home but assuming that he can sell his home for $400,000, he has $10,000 in equity invested in his house.

Net income is the amount of money an individual earns after deductions such as CPP, EI, and income tax. Your yearly take home pay.

Money Sense magazine using Stats Canada census information has calculated the income levels of Canadians for 2007.


Net Income Levels

The median Canadian family had a total income of $62,600 in 2006. The median individual living alone has an income of $27,500.

Poor - Lowest Paid 20% of Canadians
Individual Income less than $10,700
Family less than $36,600

Lower Middle Class - Lower 20% of Canadians
Individual Income $10,700-$20,300
Family $36,600-$58,600

Middle Class - Median 20% of Canadians
Individual Income $20,300-$33,100
Family $58,600-$82,200

Upper Middle Class - Higher 20% of Canadians
Individual Income $33,100-$53,400
Family $82,200-$115,600

Rich - Highest 20% of Canadians
Individual Income more than $53,400
Family more than $115,600


Net Worth Levels

Median Canadian families had a net worth over $92,000 but less than $244,300 in 2006. The richest Canadian families had a net worth over $656,700.

Poor - Lowest Paid 20% of Canadians
Household worth less than $14,200

Lower Middle Class - Lower 20% of Canadians
Household worth $14,200-$92,400

Middle Class - Median 20% of Canadians
Household worth $92,400-$244,300

Upper Middle Class - Higher 20% of Canadians
Household worth $244,300-$656,700

Rich - Highest 20% of Canadians
Household worth more than $656,700


Earnings and Savings

Since the last census in 1990, household incomes taking inflation into account have not changed. However spending and borrowing to spend have increased. This has allowed many poor and lower middle class households to afford the same assets as their richer Canadian counterparts.

These Canadians do not own their assets. The banks do. As long as they can make the monthly payments, with interest, they get to keep their car and home.



Source: People Patterns Consulting based on Statistics Canada

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