What Savings Trends in Canada Mean for You

Contributing Authors: Randall Bartlett, Deputy Chief Economist  •  Sonny Scarfone, Principal Economist  •  LJ Valencia, Economist  •  Adam Pegler, Senior Financial and Tax Planning Advisor 

Across Canada, households are navigating a wide range of financial realities. In some provinces, families are managing to build up their savings, while in others, rising costs and debt are making it harder to get ahead. What is behind these differences? It turns out that where you live, how much you spend and how you manage your money all play a role.

Desjardins's latest economic report on household finances highlights that provinces like Quebec, Alberta and Saskatchewan are leading the country in household savings, each posting rates well above the national average. Alberta and Saskatchewan benefit from strong incomes and relatively affordable housing, which give households more room to save. Quebec’s success, however, stems from a different source—spending less. In contrast, Ontario and British Columbia, despite having higher average incomes, recorded much lower savings rates of just 1.7% and 0.6% in 2024 respectively.

How Household Spending Shapes the Economy

Household spending is more than a personal choice—it is a key driver of Canada’s economy, accounting for over half of the country’s GDP. When people feel financially secure, they tend to spend more on goods and services, which supports local businesses, creates jobs and fuels economic growth.

Spending trends reflect broader economic conditions. For instance, purchases of big-ticket items such as vehicles and appliances are notably above pre-pandemic levels. In periods of economic uncertainty, Canadians tend to adjust their purchasing behaviour, often reprioritizing higher-cost items. As inflation stabilizes, there is growing optimism that purchasing power will improve, supporting more balanced spending and saving habits and contributing to a more resilient economy.

Why Some Provinces Are Saving More

The reasons behind higher savings rates vary across the country. Alberta and Saskatchewan benefit from strong incomes and lower housing costs, giving households more flexibility to save. In Quebec, the story is different. Households there spend significantly less than the national average—about $15,000 less annually. Among middle-income earners, the gap is even wider, with Quebecers spending roughly $22,500 less than their Ontario counterparts.

Interestingly, Quebec households have demonstrated strong spending discipline, even with an average disposable income of just under $84,000 in 2024—which is below the national average. As such, Quebec’s savings rate remains among the highest in the country. This is partly due to demographics: the province’s population includes many people in their prime saving years—typically between the ages of 45 and 54—when savings tend to peak.

Debt, Affordability and Financial Flexibility

Household debt levels also influence the ability to save. In 2024, Ontario had the highest household debt in Canada, exceeding 200% of disposable income. British Columbia followed closely, with both provinces seeing increases in mortgage arrears and consumer insolvencies.

In contrast, Quebec and Alberta have maintained more stable debt profiles. Insolvency rates in Quebec remain well below pre-pandemic levels, and mortgage arrears have declined. These trends suggest that households in these provinces may have more financial flexibility, supported by a combination of affordability, spending restraint and demographic factors.

Why Household Savings Matter

Saving is the cornerstone of financial well-being, helping households manage unexpected expenses, navigate job changes and pursue long-term goals. At a broader level, strong household savings support economic stability by enabling families to maintain spending during uncertain times.

Proactive saving in particular provides both a financial cushion and the confidence to sustain steady spending during downturns. This helps reduce economic volatility and supports recovery by keeping demand more consistent.

When paired with financial systems that encourage responsible lending and investment, savings can further strengthen economic resilience. A solid savings foundation helps both households and the broader economy navigate challenging periods more effectively.

How You Can Build Financial Resilience

No matter where you live, there are steps you can take to strengthen your financial foundation. It starts with understanding your financial habits—track your income and fixed expenses like rent, utilities and subscriptions, then build a realistic budget for variable costs such as groceries, clothing and entertainment. Adding a small buffer to your budget and creating an emergency fund can help bring peace of mind and prepare you for the unexpected.

Being honest about your spending is key. Identifying what is essential versus non-essential can reveal opportunities to save. Setting clear, achievable savings goals—whether monthly, quarterly or annually—can help you stay on track and motivated.

No matter where you are in your financial journey, tools like the First Home Savings Account (FHSA)—which offers tax-deductible contributions and tax-free withdrawals for first-time homebuyers—can be a great place to start. Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs) provide tax advantages for both short- and long-term goals, while Exchange-Traded Funds (ETFs) offer low-cost, diversified investment options that can be held within these accounts. Using a TFSA as a savings vehicle for your emergency fund offers a tax-efficient way to set aside funds while maintaining easy access to your money. And for personalized support, a financial planner can help you make confident, informed decisions.

Your Finances, Your Future

Canada’s economic future is not just shaped by outside global factors, but also by the financial choices of its households. Whether you are living in a high-cost city or a more affordable region, building financial confidence through sound money management can make a meaningful difference—for you and for communities across Canada.

Empowering Canadians to manage their money wisely strengthens our communities. A financially resilient population contributes to a healthier, more robust economy. And that’s something worth investing in.