With the holiday season fast approaching, understanding the spending habits of consumers is essential for businesses to tailor their offerings effectively. Toronto’s diverse population exhibits distinct spending patterns across various age groups. This analysis explores the financial behaviours of five key demographics— ages 15-24, 25-39, 40-49, 50-64, and 65+—providing valuable insights for businesses aiming to understand consumer trends.
15-24 Age Group
This age group is transitioning from dependence to financial independence, with total spending second highest among all age groups, reflecting a student or early-career status with many expenses. They spend moderately on essentials ($64,101), with significant amounts on food, dining out ($1,908) and online deliveries ($1,943), indicating a socially active lifestyle. Controllable spending, which includes child care, personal care, furnishing and equipment, telecom, education and recreation, is slightly above average at $20,000, with education being the highest spending category—double the Canadian average. Discretionary spending, such as tobacco, and alcohol, is also above average, with $56 on tobacco products such as e-cigarettes and a household average of $1,496 for alcoholic beverages. This group invests heavily in electronics, particularly smartphones and gaming devices. Charitable contributions are notably high for their income level at $691, alongside $1,200 spent on entertainment.
25-39 Age Group
This group typically represents young professionals and early family builders. Their total spending increases significantly, driven by higher income levels and life events like starting families and purchasing homes. Essentials spending averages $58,050, close to the Canadian benchmark, with $31,050 allocated to shelter and $9,805 to mortgage payments. Controllable spending focuses less on education compared to the 15-24 age group, but significantly more on child care. Transportation spending is slightly below average, with the highest expenditure on car insurance and gasoline. Discretionary spending is moderate, with $3,464 allocated to clothing. Charitable contributions are lower at $160, likely due to a focus on savings.
40-49 Age Group
The 40-49 age group, representing peak earning years and family life, mirrors the spending patterns of the 25-39 age group, with $61,609 spent on essentials and $16,514 on controllables. They allocate $32,787 to shelter, with significant expenditures on mortgage payments ($11,529) and property taxes ($1,967). Transportation spending totals $13,297, including $3,027 for automobile purchases and $2,294 for public transportation. Discretionary spending is slightly above average, with $3,474 allocated to clothing. Investments in home improvements and electronics reflect their established lifestyles. Charitable contributions are lower at $323, possibly due to prioritizing financial stability over donations.
50-64 Age Group
This group has the highest spending across most categories, reflecting peak financial stability. As this group is slightly older, they are likely earning significantly more than younger groups. Essential spending reaches $78,590, with substantial allocations to shelter ($40,480) and insurance. Controllable spending is the highest among all age groups at $22,632, driven by investments in comfort and leisure, including transportation ($17,927). Discretionary spending is also significant at $7,077, focusing on quality clothing, electronics and home-related expenses. Charitable contributions are the highest at $1,105, reflecting their capacity to give back. They also spend considerably on education for their children and healthcare, highlighting their commitment to family and increased health needs.
65 and Above Age Group
The 65 and above age group reflects a shift toward a more conservative spending approach post-retirement. Their total spending decreases, with essentials spending at $59,606, including $29,060 for shelter, property taxes ($5,060) and home maintenance ($3,060). Controllable spending is lower at $15,746, primarily focused on basic needs. Transportation costs total $12,706, including automobile purchases and public transportation. Discretionary spending is moderate at $6,102, with practical clothing purchases. Charitable contributions remain significant at $671, showing strong social responsibility. Healthcare costs rise, aligning with their increased healthcare needs, and food and beverage spending declines due to lifestyle changes.

Business Insights
Understanding the spending habits of different age groups provides valuable insights for businesses. Here are some targeted strategies:
15-24 Age Group:
- Marketing Focus: Emphasize trendy fashion and the latest electronics. Use social media and influencer partnerships to appeal to their lifestyle.
- Product Development: Develop affordable tech gadgets and subscription-based services for music, video streaming, and gaming.
- Promotions: Offer student discounts and bundle deals on electronics and fashion items to attract budget-conscious consumers.
25-39 Age Group:
- Marketing Focus: Highlight products that cater to both personal and family needs. Use targeted online ads and social media platforms frequented by young professionals.
- Product Development: Invest in quality home improvement products and family-oriented services. Offer smart home devices and eco-friendly products.
- Loyalty Programs: Implement programs that reward frequent purchases, especially in food, beverages, and childcare products.
40-49 Age Group:
- Marketing Focus: Emphasize value and quality in home improvement, electronics, and family essentials. Use email marketing and loyalty programs to retain customers.
- Product Development: Develop high-end electronics, durable home appliances, and premium quality clothing. Offer customization options for a personalized shopping experience.
- Promotions: Offer financing options for large purchases like electronics and home appliances to accommodate their spending habits.
50-64 Age Group:
- Marketing Focus: Highlight comfort, quality, and luxury in marketing campaigns. Use traditional media like TV and print ads to reach this demographic.
- Product Development: Focus on health and wellness products, high-quality clothing, and premium home improvement items. Offer products that enhance their lifestyle and ease of living.
- Loyalty Programs: Create programs that reward long-term customers, with perks like exclusive discounts on travel, dining, and luxury goods.
65 and Above Age Group:
- Marketing Focus: Emphasize affordability, health benefits, and ease of use. Use direct mail and TV ads to reach this audience.
- Product Development: Develop healthcare products, comfortable clothing, and home maintenance services. Offer products that cater to their specific health and lifestyle needs.
- Promotions: Provide discounts on essential items, healthcare products, and services that support a frugal lifestyle.
Similarities and Differences
Similarities:
- Essentials and Controllables: Significant spending across all groups.
- Charitable Contributions: Higher in 50-64 and 65+ age groups.
- Housing and Transportation: Consistently high expenditures.
- Recreation and Entertainment: All age groups allocate part of their budget to leisure activities
Differences:
- Highest Spending: The 50-64 group spends the most, indicating peak earning years.
- Frugal Lifestyle: The 65+ group shows reduced discretionary spending but higher charitable contributions.
- Healthcare: Spending increases with age.
- Clothing and Electronics: Younger groups (15-24) spend more on these categories, whereas older groups focus more on healthcare and home-related expenses.
Understanding these spending patterns, as revealed by our data helps businesses tailor their offering to different age groups, addressing their specific needs and preferences. Toronto’s household spending habits reveal intriguing patterns influenced by age, providing valuable insights into the city’s diverse financial landscape. To learn more and see our detailed data visit our website and contact us today!