Since the pandemic, a trend of compensatory shopping and borrowing to spend has emerged around the world. However, young people in China have chosen to save instead. Saving is becoming increasingly popular among Chinese Gen Z on social media, as they set strict monthly savings goals and document their efforts to keep their living expenses low.
One example of this is “Little Zhai Zhai,” a 26-year-old internet user who aims to keep her monthly living expenses at just 300 yuan ($41.20). She recently posted a video of herself spending only 10 yuan ($1.38) on food as part of her savings efforts.
Another way that young people in China are saving is by buying “golden beans” for 400-600 yuan each, which they see as a long-term investment. This trend is attracting younger customers, with Gen Z (born 1997-2012) being the primary customer group for these products.
Many young people in China are also cutting back by finding “saving buddies” on social media. They form groups and make sure everyone sticks to their goals, including going to community cafeterias where meals are sold at lower prices. This compensatory savings mentality is different from the consumption trends of young people around the world, who often spent more than they earned and borrowed money for luxury items like Gucci bags or iPhones.
However, not all young people in China are choosing to save over spend entirely. Some still take out debt to travel or prefer a vibrant life over saving and depositing money in the bank. It’s important for them to find balance between their financial goals and personal interests.
