Frugal Generation: China’s Young Adults Focus on Saving, Raising Economic Concerns

Frugal Generation: China’s Young Adults Focus on Saving, Raising Economic Concerns

BEIJING - 22 JAN - In China, a growing trend of frugality among young adults, particularly Gen Z, has taken hold, exacerbated by the pandemic’s economic disruption and a crisis in the property market.

World
World

BEIJING - 22 JAN - In China, a growing trend of frugality among young adults, particularly Gen Z, has taken hold, exacerbated by the pandemic’s economic disruption and a crisis in the property market. Many under-30s, particularly on platforms like Xiaohongshu, are exchanging tips on cutting back on expenses like office lunches and finding ways to shop more economically. Influencers are also contributing, with posts about saving money amassing millions of views. For instance, 26-year-old Ava Su, despite earning a decent salary at Alibaba, is focused on cutting back on impulsive spending and saving for a long-term goal of 2 million yuan, reflecting a wider trend of heightened financial discipline among young Chinese workers.

This new frugality has led to an increase in savings, with users of the popular Yu’e Bao money market fund making an average of 20 deposits per month by the end of 2024, doubling the frequency from earlier in the year. However, economists warn that this entrenched saving culture could undermine domestic demand, which policymakers are hoping will drive China’s GDP growth. This shift in mindset marks a stark contrast to the more free-spending attitudes of the "moonlight" generation, who were known for spending their entire salaries. With job insecurity and a rise in unemployment among young people, many are opting for government or state-owned enterprise jobs, as evidenced by the high youth unemployment rate of 21.3% in 2023. This cautious approach to spending, coupled with existential anxiety, is fueling fears that China’s economic growth may slow in the coming years.

People gather at The Bund with the Pudong financial district visible in the background in Shanghai, China.

Latest

July 2, 2025
World
World
Netanyahu to visit Trump at White House as Gaza ceasefire pressure intensifies

WASHINGTON, July 1 — Israeli Prime Minister Benjamin Netanyahu is set to visit the White House next week for talks with President Donald Trump, as the U.S. intensifies efforts to secure a ceasefire in Gaza, a U.S. official confirmed on Monday.‍

June 29, 2025
World
World
Manchester United gear from the Asean All-Stars match donated to SK Lemoi under CSR initiative

KUALA LUMPUR, June 29 — Public relations agency ShekhinahPR, in collaboration with football marketing and management consultancy ProEvents, has donated football gear used by Manchester United during their recent match against the Asean All-Stars at the National Stadium in Bukit Jalil to Sekolah Kebangsaan (SK) Lemoi.‍

June 25, 2025
World
World
Trump alleges Iran strikes inflicted ‘serious’ damage despite unclear intelligence findings.

THE HAGUE, June 25 — U.S. President Donald Trump claimed today that missile strikes over the weekend caused severe damage to Iranian nuclear sites, although he admitted that the intelligence available was inconclusive.‍