Looks like youll make more in Alta, but it'll cost a lot more to live there after everything is taken into account.

Average disposable income for Sask Households $40,340
Veronica Rhodes, Leader-Post
Published: Friday, July 14, 2006

Saskatchewan and Manitoba may have lower income levels than Alberta but residents of the oil-rich province must use their extra cash to pay for higher housing and transportation costs, according to a recent study.

In the June issue of the Sask Trends Monitor, publisher Doug Elliott examined the spending patterns of residents in the three Prairie provinces, which is not a true measure of the cost of living but provides a reflection of it. Information from Statistics Canada's Survey of Household Spending from 2004 -- the most recent data available -- was used in the study.

According to the statistics, the average disposable income (the amount of income left after income taxes, insurance and pensions) for Saskatchewan households was $40,340, which was comparable with Manitoba's average of $42,340 but both were considerably less than Alberta's average of $54,440.

Elliott said he found Alberta residents seemed to be using their surplus of disposable income on housing and transportation. The average household spending on housing for Saskatchewan residents was $9,440, compared with the Alberta average of $13,180.

"The difference in housing was absolutely no surprise. Everyone knows that it cost more to live and buy a house in Alberta than it does in Saskatchewan," Elliott said.

But, the high cost of transportation was a little surprising. Saskatchewan households spent an average of $7,360 on transportation in 2004, while Alberta residents spent $9,150.

"For young people, it seems to be related to insurance premiums and for people living in urban areas, it seems to be related to the fact they have to commute to work, so they're actually driving more," Elliott explained.

While Albertans have to spend their excess disposable income on housing and transportation, Elliott pointed out that it isn't exactly money going down the drain.

"If the price of housing keeps going up the way its been going up, you're actually purchasing an asset," he said.

The study also found there are few differences in living in rural areas compared with the two big cities in Saskatchewan. Residents living in Saskatoon and Regina may pay more for housing -- about $3,600 -- but their costs in other areas such as transportation and retail items are less.

However, Elliott said the lowest cost of living in the province seems to be found in small urban centres.

"The folks in Tisdale, Weyburn, Estevan, and North Battleford are the real winners because they don't have either high transportation costs or housing costs. If you want a cheap place to live in Saskatchewan, find a small urban centre," he said.

One of the odd findings of the study was that Saskatchewan residents pay considerably less for food that both Manitoba and Alberta. The Saskat-chewan average per household was $5,660, compared with $6,380 in Manitoba and $7,100 in Alberta.