Where the Fun Money Goes: A Look at What Canadian Households Spend on Entertainment

Ask someone what they spend on entertainment in a year and you’ll get a shrug and a number that’s almost certainly too low. It isn’t dishonesty. It’s that entertainment stopped arriving as a single purchase and started arriving as a dozen small ones, most of which renew themselves without asking.

There is, as it happens, a reliable answer to the question, and it’s larger than most people guess.

The Number

Statistics Canada runs a national Survey of Household Spending that tracks where money actually goes rather than where people think it goes. Its 2023 results put average household spending on goods and services at $76,750, with recreation accounting for $5,231 of that.

Five thousand dollars is a meaningful sum, and the survey shows it rebounding hard after the pandemic years, up nearly a quarter from 2021. The recovery was driven overwhelmingly by things you leave the house for: spending on recreational services such as cinemas, live sport and performing arts more than doubled.

The survey also treats games of chance as its own line item in household consumption, alongside categories like alcohol and reading materials. It’s a small share of the total, and it’s tracked separately for the same reason tobacco is.

Averages Hide More Than They Show

Before drawing conclusions from $5,231, it’s worth noting how differently that money is distributed. Households in the highest income quintile put 7.7% of their consumption toward recreation. Households in the lowest put 5.4%.

The percentage gap looks modest. The dollar gap is not, because the percentages apply to very different totals. A gap in share becomes a chasm in absolute spending, and any conversation about entertainment budgets that ignores this is really a conversation about one income bracket.

The Subscription Problem

The structural change of the last decade isn’t how much people spend on entertainment. It’s that the spending became invisible.

A cinema ticket was an event. You decided, you paid, you noticed. A streaming subscription is the absence of an event: you decided once, possibly during a free trial you’ve forgotten, and now the decision renews itself monthly forever unless you actively intervene.

Multiply that by video, music, cloud storage, a fitness app, a news site, a game pass and whatever your household signed up for during a sale, and you get a category of spending that nobody experiences as spending. The typical reaction when people finally audit it isn’t horror at one large item. It’s surprise at the total of many small ones.

Three Categories Worth Watching

Some entertainment spending is harder to keep track of than the rest, and it tends to cluster in three places.

Subscriptions, for the reasons above. The fix is mechanical: most banks now surface recurring charges, and going through three months of statements catches the quarterly and annual ones that a single month misses.

In-app and in-game purchases, where the individual amounts are small enough to feel weightless and the frequency is high enough to add up. This one gets complicated in households with children, where the purchaser and the account holder aren’t the same person.

And betting, which behaves differently from the other two and deserves its own treatment.

Why Betting Doesn’t Average Well

The awkward thing about gambling as a spending category is that the average describes almost nobody. Most households spend nothing at all. A small minority spends a great deal. The mean sits in a space where very few people actually live.

This is why arguments about it tend to talk past each other. Cite the average and it looks trivial. Cite the upper tail and it looks alarming. Both numbers are accurate and neither describes the other group.

For anyone who does bet, the practical consequence is that a general benchmark is useless. What matters is a figure you set in advance for yourself. Ontario’s regulated operators, including any online betting site registered in the province, are required to give players an obvious way to set deposit and time limits on their own accounts, and setting one before you start is the difference between a spending decision and a running total you discover later.

The Audit That Takes Twenty Minutes

If you want a real answer for your own household rather than a national average, the method is dull and effective.

Pull three months of statements. Write down every charge that isn’t housing, groceries, transport, insurance or debt. Sort what’s left into three piles: used in the last month, deliberately kept despite rare use, and completely forgotten.

Cancel the third pile only. The second pile is allowed to exist, because a service you use once a quarter and enjoy is not a mistake. Paying for something you forgot you had is.

What the Rebound Suggests

The most interesting thing in the 2023 data isn’t the total, it’s the composition. After years of substituting screens for outings, Canadian households swung hard back toward experiences the moment they could, with spending on recreational services rising faster than anything else in the category.

That doesn’t look like a population that prefers streaming. It looks like a population that streamed because the alternatives were closed. Whether that trend holds as prices for live events keep climbing is a genuinely open question, and the next round of survey data will answer it better than any prediction.

The Unexciting Conclusion

Nobody needs to spend less on entertainment. Enjoyment is a legitimate use of money and treating it as a moral failing is both wrong and unhelpful.

What’s worth having is the number. Spending you can see is spending you’re choosing. Spending that renews quietly in the background is spending that chose itself, and the gap between those two is where most people’s surprise lives.