In the first quarter of 2026, the average Canadian household’s net worth topped a million dollars at $1.08 million, according to Statistics Canada.
Before your monocle pops into your martini glass, it’s important to know most of us are not millionaires. Wealth distribution in this country is heavily skewed to the top 20 per cent of households, averaging about $3.5 million.
More accurately, median net worth - the exact middle value - is almost half that at $520,000.
Take that as you will, but it is also important to know wealth distribution is heavily skewed toward older Canadians who have been saving and investing longer, and are near or in retirement.
Fortunately, we live in a country that values social mobility and there are pathways to reach net worth benchmarks at various stages in life by saving and investing wisely. This is where younger Canadians have the advantage of time.
How to calculate your household net worth
Simply put, net worth is measured by subtracting the dollar value of everything we own (assets) from the dollar value of everything we owe (liabilities).
Assets include financial assets such as the current value of registered retirement savings plans (RRSPs), tax free savings accounts (TFSAs), other investments in registered and non-registered accounts, workplace pensions and cash.
Assets can also be non-financial such as your principal residence, vacation homes and any other real estate. The current value of vehicles and business equity are also considered non-financial assets.
Liabilities are defined as total outstanding financial claims or debts, such as mortgages, consumer credit, loans, and credit card balances.
There are two ways to increase your net worth over time: grow those assets and lower your liabilities.
Growing your assets
There are also two basic ways of growing your assets: saving and investing. Savings can be enhanced though tax-efficient investment vehicles such as RRSPs and TFSAs.
You can invest in just about anything including stocks, bonds, mutual funds or exchange traded funds (ETFs). A portfolio of diverse asset classes, sectors and geographic regions tends to maximize growth opportunities over time while minimizing risk.
You can invest on your own or through a qualified advisor but be sure to ask about all fees to determine weather they will be a drag on growth.
Reducing liabilities
On average, Canadian households owe between $1.74 and $1.78 for every dollar of disposable income they bring in. Roughly 75 per cent is mortgage debt and the rest includes lines of credit and credit card balances.
Homeowners with mortgages can reduce their liabilities by paying down the principal faster and seeking a lower interest rate.
Some 5-year fixed rates are below four per cent right now, so it’s probably better to pay down higher interest debt such as consumer lines of credit, student loans or balances on credit cards, which can exceed 26 per cent.
Paying down higher-rate debt first will have a greater impact in preventing your liabilities from compounding at a faster pace.
Homeowners can consolidate high-interest debt into one low-interest loan through a secured home equity line of credit (HELOC), which is currently about 5 per cent.
