Housing is the most obvious expense that’s far greater in urban centres.
The Way Home is a series looking at the challenges faced by different generations of people who are in the market for a home – from first-time buyers and growing families to baby boomers who are downsizing.
Jimmy Gray says his friends who are renting apartments in his hometown of Meaford, Ont., have a plethora of options, such as a two-bedroom spot along a picturesque river in the quaint cottage-country town, for less than $600 a month.
Mr. Gray, 25, is paying the same amount.
But 180 kilometres south in the concrete jungle of Toronto's Yonge and Eglinton neighbourhood, Mr. Gray's living arrangement is a little different.
"I've just moved in with two friends from university in a house that's owned by a real-estate conglomerate," he says. "And in my room, there's only enough space for a bed."
For millennials who are eager to move away from their small-town upbringing to the bright lights of the big city, dealing with the financial pitfalls that come with the move is a major challenge.
Stories like Mr. Gray's are not uncommon, as more young people decide to leave their small towns behind in pursuit of bigger career goals within Canada, or even around the world.
Mr. Gray worked at the Bank of Montreal in Mississauga after graduating from the University of Guelph with a degree in commerce. He has worked at Manulife Financial Corp. for nearly two years in the 401(k) division at the company's head office in downtown Toronto at Yonge and Bloor streets.
It has always been Mr. Gray's dream to work at an international finance centre, such as Frankfurt, Hong Kong or London.
But in order to move on to bigger and better things in the finance world, he had to start by moving out of his small town.
Meaford, with a population of about 11,000, is a municipality on Georgian Bay, about 25 minutes from Owen Sound. And for many of Mr. Gray's contemporaries, the simple life there fits them just fine.
"A lot of my friends are doing carpentry or landscaping or other skilled trades," he explains. "They lived at home to cover the cost of school, but now a lot of them are buying houses or buying a truck and working in Meaford."
Mr. Gray laughs when asked how silly he would look if he had a pickup in the heart of Canada's busiest city, but admits he did consider returning home before settling on his role in Mississauga.
"I loved living in a small town, it's just that the finance game is in the city, unless I wanted to work with local clients," he says. "I did look at roles there, but it would be small-town people, looking at savings accounts for farmers and things like that."
Lana Robinson, executive director at CIBC Wealth Strategies Group in Toronto, is a small-town transplant herself (having gone from the East Coast to Ottawa to Toronto), and recognizes the importance of budgeting and planning when moving to a bigger city.
"You need to know what the market is that you're moving to, and you don't want to rush in to any major decisions," she explains.
Kristin Wong knows this process well.
Previously a technical writer, Ms. Wong wanted to do something more creative and went out on her own as a freelancer six years ago. She writes on millennial finance for her own website Brokepedia.com, as well as for LifeHacker.com.
Originally from Richmond, Tex. (population: 11,800), Ms. Wong now calls Los Angeles home. After moving to Hollywood five years ago, she is just now buying a home.
She felt she could write from anywhere, but ended up deciding on Los Angeles because it was "the cheaper option" as compared to her other choice, New York City.
"It took me a while to get used to the markup," she explains. "You prepare for them and you realize they're there, and then you see the effect on your wallet and it really starts to sink in."
Ms. Wong, who says she has been able to take advantage of big-city perks such as tax credits for transit, admits she would be remiss not to mention "sneaky" hidden expenses as well.
"My first night in L.A. my car got towed and I got a parking ticket," she says with a slight laugh, as if she's still not quite over the trauma. "It hasn't happened since, but my friends who live here get one and say, 'Well it was bound to happen. I haven't gotten one in a while.' It's like they budget for it.
"You have to pay [at] most places to park," she continues. "That took me a while to get used to. Gas is more expensive; movie tickets, entertainment is more expensive. They seem small and you don't think about them too much because you're too busy worrying about big things like the difference in rent, but those small things add up, too."
Ms. Robinson at CIBC says that people who move to bigger cities, who may be used to investing their disposable income, may find that they are putting more on their credit cards to help pay for things.
It's important, she explains, to understand your own situation – especially when it comes to renting or buying a property.
"Understand what your new salary means. Presumably, you've moved for more money, but what does that really mean? What does that translate to in terms of [your] budget and disposable income?" she says. "All that should inform your decision-making."