Here are the 5 biggest differences between rich and poor Canadians — which side do you fall on?

Additionally, households that are raising children are more likely to face financial stress. Families that confess to struggling identify that the topic concern is their ability to cover housing, grocery costs and debt — with the biggest concern being their waning optimism for the upcoming year.

Despite these fears and very real financial stressors, it appears that wealth is less about how much you earn and more about how you think about money — and what you do with it.

To help, here are five ways higher-income earners approach life, career and finances — and how the rest of us can learn from their money management skills.

1. The rich are subtle about their wealth

Contrary to popular belief, most multimillionaires In Canada aren’t cruising around in a neon orange Lamborghini or smoking cigars stashed in their Gucci bags. Many high-net-worth (HNW) or well-off Canadians tend to downplay their wealth and financial standing, even when they have significant assets.

According to The Globe and Mail, this behaviour is likely due to cultural modesty, especially when discussing money. Plus, many Canadians, including those with high incomes, feel less wealthy than they actually are — suggesting attitude trumps practice.

These attitudes follow the "stealth wealth" trend, also known as quiet luxury. As a Canadian normative attitude, quiet wealth means we culturally tend to favour value over brand name. For example, while the market for luxury vehicles holds true for some, many wealthy Canadians prefer higher-end models of tried and true makes, such as Ford, Toyota and Honda, indicating a preference for practical choices over flashy displays of wealth.

Wealth Tip: Wealthy Canadians stay wealthy by resisting the urge to flaunt it.

2. The rich know how to delay gratification

Another major psychological difference between the rich and the poor is a wealthy person's ability to delay gratification.

Wealthy Canadians understand that wealth is built over time. A 2017 study showed that when Canadians had extra money, they put it away to save for retirement rather than spending it immediately on a consumer good. This ability to save for future financial goals shows that wealthier people — people who earn more or save more — tend to have greater patience and were better at delaying gratification.

Wealth Tip: The ability to resist instant gratification is a key sign of future financial success.

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3. The rich know you need to spend money to make money

Because wealthier Canadians are better at practicing delayed gratification, they’re also more likely to invest their money rather than spend it.

In 2021, about one in three Canadians were invested in the stock market. These numbers will likely continue to grow as broader groups of people begin to invest their savings. A 2023 study from FINRA and the CFA Institute found that Canada has the highest rate of Gen Z investors, with nearly 74% reporting that they have at least one type of investment.

Will Gen Z be the next highest group of millionaires? These numbers suggest the younger generation understand the importance of their money working for them, rather than the other way around.

Wealth Tip: To make money you need to spend money, but not on consumer goods. The key is to invest early and often to allow for compound interest and cumulative gains to grow your wealth.

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4. The rich know to leverage debt skillfully

Debt can be both bad and good — it’s all about how it’s used.

Lower-income Canadian households are more likely to rely on costly forms of credit to manage their finances. Research from theFinancial Consumer Agency of Canada (FCAC) on payday loans shows that users are more likely to be from vulnerable populations, including those in households earning less than $40,000 annually.

According to the Bank of Canada’s Financial Systems Review, in 2022 wealthier Canadians tend to use debt for productive investments, such as real estate or business ventures. These assets have the potential to grow in value, while consumer goods like cars or electronics lose value over time.

Wealth Tip: Rethinking how you use debt could be a game-changer on your path to building wealth.

5. The rich know to constantly pursue lifelong learning

In a constantly shifting economy, wealthier individuals know the key to preserving and growing wealth is to keep learning new skills and adapting to unexpected changes.

The Employment and Social Development Canada experts state that as a learning nation we “share a common understanding that to achieve prosperity for individuals, households and communities, we must prioritize learning throughout our lives."

Signing up for professional courses, attending workshops and expanding your horizons, professional education or increasing your financial literacy, can give your career — and your savings — the boost it needs to step up and amplify wealth creation.

Wealth Tip: Invest in education and learning, both for career goals and for financial success.

Sources

1. Angus Reid Institute: Cost of Living and the Vote: Those economically ‘Struggling’ lean CPC, but it’s a shrinking group (April 1, 2025)

2. Financial Post: Posthaste: The ranks of Canada's 'haves' are growing, but there's a dark flipside to that by Gigi Suhanic (March 22, 2024)