When it comes to the cost of living, Canada’s one of the most expensive countries to live in. With a cost-of-living index at 72.48, household expenses can be almost half of your net salary. The high cost of items can prove challenging since it imports many things from the US. This has led many to wonder, what is cheaper in Canada than in the US?
Despite the belief that things are expensive in Canada, you can still get some items for lesser prices than in the US. Such things include healthcare, medicine, tertiary education, raising children, mortgages, hotel lodgings and tourism, meat, potatoes, bread, certain fruits, and the internet.
However, this doesn’t mean that everything is cheaper in Canada or the cost of living is lower compared to the US. In this article, we look at some of the things that are cheaper in Canada than in the US.
What Is Cheaper in Canada Than the US?
Here are some things that you can get at a cheaper cost in Canada compared to the United States:
Healthcare in Canada is free for Canadians and residents and it is relatively cheap compared to the United States. In 2019, the cost of healthcare in Canada per person was CAD 7,064, while it was $11,000 in the US. The cost of healthcare in Canada is much cheaper than that of other countries such as Switzerland, Denmark, Norway, Sweden, Iceland, Luxembourg, and Australia. This low cost makes it more affordable to get medical treatment in Canada.
The cost of medicine in Canada is also cheap compared to the US. The price is so low that some Americans are now buying their prescription drugs from Canada. This is due to the high cost of prescription drugs in America, making many residents buy from other countries to save money. According to the Campaign for Personal Prescription Importation (CPPI), prescription drugs in American pharmacies are usually 50 to 80% cheaper in Canadian pharmacies.
3. New Cars
There are certain new cars that you can get for a lesser cost in Canada than in the US. While this does not apply to every vehicle, you will still get certain cars for lower prices in the country. Just make enquiries from the car dealerships to find out.
4. Tertiary Education
The United States is notorious for its high cost of education that has left millions of people with crippling student loans. Higher education in the US is the highest in the world. In Canada, the cost is much lower. So, many Americans prefer to go to Canada for their tertiary education even though international students pay way higher.
Canadian citizens pay about CAD6,463 on average for an undergraduate degree and CAD7,506 on average for a graduate degree. In the US, the cost of education in public colleges is $12,320 on average, and for private colleges, it costs a whopping $48,510 on average.
5. Raising Children
Another area where Canada provides a cheaper alternative is raising children. Even private preschools cost less on average here than in the United States, and Kindergarten is also free. Beyond that, several governmental subsidies and benefits make raising your child in Canada much cheaper than what you will have to pay in the US.
The cost of housing in Canada is relatively high, with only a few provinces such as Quebec having low real estate prices. Regardless, the annual interest rate on a mortgage in Canada is lower when compared with what obtains in the US. The average mortgage interest rate is higher in the US, making Canada a cheaper place to get a mortgage on your property.
7. Hotel Rooms and Tourism
If you’re planning a trip to either the US or Canada, it’ll be good to know which of the two countries will be cheaper for you. It turns out that Canada is more affordable. A 7-day trip in Canada will cost a solo traveller; $1079, a couple; $1633, and a family of 4 will pay $2081. A Canadian hotel costs $87 per night on average, with a range of $54 to $245.
In the United States, hotels cost between $63 to $289, with an average of $99 per night. So a 7-day trip here will cost a family of 4; $3,7652, a couple; $1,842, and a single traveller will pay $1,705. Even the average cost of a flight from anywhere in the world is higher when flying into the US instead of Canada.
You can get certain kinds of meat for less in Canada. If you are someone who likes beef, you may want to consider living in Canada. Beef round, which is 1kg of beef, costs a little more in the United States. It is worth $12.54 in the US, while it is only $11.88 in Canada. Of course, the prices in both countries are still low compared with that of Switzerland or Norway. Chicken also costs less in Canada than in the United States
Beef is not the only food item you’ll pay less for in Canada. The cost of potatoes here’s also cheaper at $2.25 per kg than $2.58 in the US. So, you’ll be getting your fries for less in Canada than in the United States.
Bread is one of those essential food items that almost no one can do without. In Canada, you can get 1lb of bread for a lesser price than you will in the United States. All you need is just $2.08 to get bread in Toronto compared to $3.65 that you will need to get the same bread in New York.
Certain fruits are much cheaper in Canada than in the United States. Such fruits include oranges and apples. For example, 1kg of apple costs $4.53 in the United States instead of $3.32 in Canada. Oranges also cost less in Canada.
The United States might’ve invented the internet, but that doesn’t mean it comes cheap. Even though Canada has a high cost of internet, on average, it’s still cheaper than what you’ll get in the US. For example, a data package of 60 Mbps or more unlimited data with cable/ASDL will cost you $62.62 in Canada, but you’ll pay a little higher at $65.91 to get the same value in the US.
The Bottom Line
Canada is considered an expensive country to live in with several commodities and services costing more here than in the US. But there are still items that cost less here than in the US. Beyond that, the high standard of living and average income make Canada one of the best places to live in the world despite the high cost of living.