Wealth Building in Canada

Wealth Building in Canada is still the primary method of accumulating wealth in Canada, accounting for nearly half of all household wealth accumulation over the past three decades. However, it’s becoming increasingly difficult for Canadians to afford to enter the housing market, particularly for renters, who devote a much greater percentage of their take-home income to household costs and have a more limited scope for saving for a down payment.

Smart Wealth Building Tactics in Canada

Fortunately, the path to financial success doesn’t require homeownership—and there are many ways Canadians can build wealth and achieve their long-term financial goals. Start by setting specific, measurable, achievable, relevant and time-bound financial goals for the short term (e.g., paying off debt or building an emergency fund). Then, commit to consistent savings and investing through tax-advantaged accounts like the RRSP and TFSA.

Another approach to building wealth is community-rooted financing, which can help sever local reliance on external funding and ensure that wealth-generating assets—including land, affordable housing, and green infrastructure—are built locally and distributed more evenly. This approach can also help align Canada’s environmental ambitions with the need for inclusive economic development by promoting equitable and resilient local economies that are both environmentally sound and socially just. Lastly, families can also build generational wealth by using structures such as family trusts to hold investment securities and pass on their share of a company’s earnings to future generations without triggering capital gains taxes.