Since the pandemic hit, a trend of compensatory shopping and borrowing to spend has emerged across the globe. However, in China, young people are taking a different approach – they are saving. In fact, saving is becoming increasingly popular among Chinese Gen Z on social media, where they set strict monthly savings goals for themselves. One 26-year-old internet user named “Little Zhai Zhai” documents her efforts to keep her monthly living expenses at just 300 yuan ($41.20) and even posted a video of herself spending only 10 yuan ($1.38) on food.
In addition to simple savings, many young people in China are also investing in gold by buying 1-gram “golden beans” for 400-600 yuan each. This is a long-term investment that has become increasingly popular among Gen Z, who traditionally buy gold in large quantities. While middle-aged and elderly people have historically been the customer group attracted to these products, now Gen Z is leading the way.
Some young people cut back by finding “saving buddies” on social media and forming groups to ensure everyone sticks to their goals. They also look for discounts and promotions when shopping and use terms like “reverse spending” and “frugal economy.” According to recent data from the People’s Bank of China, total household savings in yuan increased by 11.8 percent in the first quarter compared to the same period last year.
While this trend of saving is not universal among young people around the world, it is not unique to China either. A survey by Bank of America showed that Gen Z took out debt to travel despite their preference for frugality over saving money in the bank. Meanwhile, Intuit’s Wealth Report found that instead of saving, 73% of Gen Z in the US preferred a vibrant life over financial stability. It appears that young people everywhere sense that their economies are not doing well and may be turning towards frugality as a result.
