China's Youth Master the Art of Saving: Two Meals for Just a Buck!

China is currently facing several economic challenges, and the government is hoping that young people will start spending more money to help boost the economy. However, convincing them to do so has proven difficult. Many young people are worried about their job security, with youth unemployment rates hovering around 20 percent. Even those who have jobs fear they could lose them, and the ongoing property crisis makes owning a home seem impossible, especially in big cities. This uncertainty has led many young Chinese to adopt a frugal lifestyle, and social media is full of advice on how to live well on a tight budget.

One influencer, known online as Zhang Small Grain of Rice, has built her career around promoting a minimalist way of life. She shares videos of herself using a single bar of soap for all her cleaning needs instead of buying expensive products. She also highlights bags and clothing that are durable and good value for money. Companies pay her to feature their products to her 97,000 followers on Xiaohongshu, a popular social media site. Zhang hopes that by teaching people to avoid 'consumption traps,' she can help them save money and reduce stress.

Another social media personality, Little Grass Floating In Beijing, focuses on budget-friendly eating. He demonstrates how he can prepare two meals for just over one dollar. He works for an online sales company and claims that his simple lifestyle has allowed him to save more than $180,000 over six years. Some followers have asked if he expects his future family to live the same way, but he admits he does not know. Many young Chinese are cutting back on food and other expenses to save money.

China has long been seen as an economic powerhouse, able to withstand global challenges like the pandemic and trade disputes. But experts warn that the country will face serious long-term problems if it does not increase domestic spending. Unlike the United States, where people often spend beyond their means and accumulate debt, Chinese people tend to save more, especially when they feel uncertain about the future. The government has tried for years to encourage more household spending, but it still makes up only about 39 percent of the country's GDP, compared to around 60 percent in most developed nations.

Today's youth are more pessimistic than those in the 1990s and early 2000s. Many have had their salaries cut and are unsure how long their jobs will last. One young woman in Beijing told the BBC that she had to change jobs, but her new position pays less and she is not sure how secure it is. The tough job market means employers can lower wages, knowing that workers have few other options. Some young people are forced to accept jobs outside their field of study, such as delivery driving, even if they have advanced degrees.

China is trying to shift from being a mass producer of cheap goods to a high-tech economy, but these new industries do not need as many workers. Economist George Magnus points out that there is a mismatch between the skills young people have and the jobs available. The push for robotics and artificial intelligence, while important for the future, is not creating enough jobs right now.

Helena Lofgren, who studies China's consumption patterns, believes the country relies too much on exports and investment in certain industries. She warns that if China loses significant export revenue, it may not be able to support its large population through domestic spending. The government has tried to encourage people to buy new cars and appliances by offering incentives, but this has not led to a big increase in consumption.

Deflation is another problem. Many people are waiting for prices to drop before making big purchases, which can lead companies to lower prices even more. This cycle can hurt businesses and slow economic growth. Some experts suggest that building a stronger social safety net or raising minimum wages could help make young people feel more secure and willing to spend.

For now, many young Chinese are choosing to save money and live simply. Influencer Zhang says that being careful with money is part of Chinese tradition, passed down from older generations. As China faces economic uncertainty, its youth are relying on frugality to get by, even as the government hopes they will spend more to help the economy grow.