It comes as no surprise that living in Toronto is expensive.
But have you ever stopped to think about just how expensive it really is? Especially if you’re a millennial?
Last summer, we estimated the breakdown of the cost of living in Toronto. If you’re in your 30s living alone, we found that the cost of living is an average of $3,093.63 per month.
That means you would need to make a minimum annual salary of $47,500 before taxes in order to bring home a monthly income of $3093 after taxes, CPP, and EI.
And we weren’t far off from what the average cost will be for millennials this year.
According to a new report from LowestRates.ca, it’s going to cost a millennial (those aged 18 to 34) $2,740.48 a month to simply make ends meet in 2018.
To reach this amount, LowestRates.ca took into account what many consider the basics of a modern life: housing, phone and internet, transportation, groceries, entertainment, fitness, and insurance.
LowestRates.ca, which is an online tool that compares financial products and provides users with the best and most affordable rate, then compared the average prices of each basic necessity to reach it’s estimated monthly cost.
The report found that the average cost of living has risen significantly since 2017, even with the province’s efforts to make the city more affordable. The average cost of living increased nearly $400 a month since last year.
In order for a Toronto millennial to be able to make ends meet, they must make at least $39,000 before tax or $33,440 after tax.
Here’s the break down of what it’s going to cost a millennial to live in Toronto in 2018:
- Housing: $1,672.13
- Phone and Internet: $127.50
- Transportation: $176.25
- Groceries: $283.60
- Entertainment: $354
- Fitness: $75
- Insurance: $52
Grand Total – $2,740.48/month, or $32,885 annually
The scary thing is, this breakdown doesn’t even include the cost of clothing or personal products, tuition, or, perhaps the largest expense that most young people are dealing with: debt repayment.
Another thing to note, rent has already gone significantly over $1,600, with average now ranging around $2,000 for a one-bedroom, being the most expensive city for rent in Canada. So for millennials looking to live alone, that monthly average is certainly closer to $3,000 per month.
Looks like 2018 will certainly be tough for millennials.