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China's newly frugal youths | China's newly frugal youths |
(about 10 hours later) | |
By Gemma O'Neill and Shuvra Mahmud BBC News Many young Chinese workers are having to learn to cut back | |
Amid the global economic downturn, young people in China are defying government initiatives to boost spending and coming up with novel ways to save money. | Amid the global economic downturn, young people in China are defying government initiatives to boost spending and coming up with novel ways to save money. |
Back in July 2008, Wang Chao, a 28-year-old office worker from Shanghai, told the BBC he spent 2,000 yuan (then about $290; £150) in a single day on trainers, clothes and gadgets. | Back in July 2008, Wang Chao, a 28-year-old office worker from Shanghai, told the BBC he spent 2,000 yuan (then about $290; £150) in a single day on trainers, clothes and gadgets. |
But when last month his company cut salaries by half, Wang said he was forced to cut back on luxuries and swap restaurant meals for homemade packed lunches. | But when last month his company cut salaries by half, Wang said he was forced to cut back on luxuries and swap restaurant meals for homemade packed lunches. |
"My monthly income has been cut by 50%. I have had to reduce my living costs, though I'm still able to eat well." | "My monthly income has been cut by 50%. I have had to reduce my living costs, though I'm still able to eat well." |
Blogs and popular internet forums are full of stories and advice from young people looking to stretch their money further. | Blogs and popular internet forums are full of stories and advice from young people looking to stretch their money further. |
This is despite the government's allocation of some $586m-worth of funds to encourage spending to keep China's economic growth around what it believes is the minimum necessary to maintain social stability. | This is despite the government's allocation of some $586m-worth of funds to encourage spending to keep China's economic growth around what it believes is the minimum necessary to maintain social stability. |
'Stingy group' | 'Stingy group' |
The young savers, or the "kou kou zu" ("stingy group"), come from the generation born around the 1980s; now 20- and 30-somethings who have been regularly accused of being spoilt and lacking financial awareness. | The young savers, or the "kou kou zu" ("stingy group"), come from the generation born around the 1980s; now 20- and 30-somethings who have been regularly accused of being spoilt and lacking financial awareness. |
This is not just a response to the crisis - it's something you can benefit from your whole life Zhang Yan In large cities like Beijing and Shanghai, young white collar workers were well-known for their ability to overspend. A recent Shanghai government survey revealed that office workers in the city spent an average of 2,500 yuan per month - a disposable income beyond the grasp of most Chinese. | This is not just a response to the crisis - it's something you can benefit from your whole life Zhang Yan In large cities like Beijing and Shanghai, young white collar workers were well-known for their ability to overspend. A recent Shanghai government survey revealed that office workers in the city spent an average of 2,500 yuan per month - a disposable income beyond the grasp of most Chinese. |
By contrast, the kou kou zu are eschewing restaurants for school and company canteens; taxis and public transport for bicycles; and high street shops for online ones. It remains a grassroots movement, but it appears to be growing. | By contrast, the kou kou zu are eschewing restaurants for school and company canteens; taxis and public transport for bicycles; and high street shops for online ones. It remains a grassroots movement, but it appears to be growing. |
Zhang Yan, a "kou kou" from Fujian province, said learning to spend wisely had been more than just a reaction to the global recession. | Zhang Yan, a "kou kou" from Fujian province, said learning to spend wisely had been more than just a reaction to the global recession. |
She told the China Daily newspaper: "This is not just a response to the crisis - it's something you can benefit from your whole life. Plus, it is environmentally friendly and represents a healthy and positive life attitude." | She told the China Daily newspaper: "This is not just a response to the crisis - it's something you can benefit from your whole life. Plus, it is environmentally friendly and represents a healthy and positive life attitude." |
For some, the shopping spree has come to an endIn 2006, Ms Zhang set up an online accounting system - www.qian8ao.com - to help others like herself to balance their budgets. | For some, the shopping spree has come to an endIn 2006, Ms Zhang set up an online accounting system - www.qian8ao.com - to help others like herself to balance their budgets. |
More than just an accounting system, the website allows users to discuss money matters, comment on posts about cost-cutting homemade dishes, and remind each other to record their expenses. | More than just an accounting system, the website allows users to discuss money matters, comment on posts about cost-cutting homemade dishes, and remind each other to record their expenses. |
Other websites promoting money-saving campaigns have become increasingly popular. | Other websites promoting money-saving campaigns have become increasingly popular. |
Wang Hao, a 24-year-old Beijing-based photojournalist, has recently been posting on his blog on how to live on 100 yuan a week. | Wang Hao, a 24-year-old Beijing-based photojournalist, has recently been posting on his blog on how to live on 100 yuan a week. |
At the last count his blog - blog.soufun.com/whblog - had received some 185,700 hits. | At the last count his blog - blog.soufun.com/whblog - had received some 185,700 hits. |
The Chinese social networking websites Douban and Kaixin Wang have also seen the emergence of similarly themed groups. | The Chinese social networking websites Douban and Kaixin Wang have also seen the emergence of similarly themed groups. |
Feeling the pinch | Feeling the pinch |
Some analysts suggest that such measures are an indication of a loss of consumer confidence, which could ultimately exacerbate the problems affecting China's slowing economy. | Some analysts suggest that such measures are an indication of a loss of consumer confidence, which could ultimately exacerbate the problems affecting China's slowing economy. |
Until recently, China's rapid economic growth meant it avoided the main affects of the global economic downturn. | Until recently, China's rapid economic growth meant it avoided the main affects of the global economic downturn. |
World Bank predictions place China's growth at 7.5% this year, compared to around 9% just a few months ago, before the global financial crisis hit. | World Bank predictions place China's growth at 7.5% this year, compared to around 9% just a few months ago, before the global financial crisis hit. |
Wang Chao told the BBC that despite the gloomy outlook he feels fortunate. | Wang Chao told the BBC that despite the gloomy outlook he feels fortunate. |
"Even though I'm earning less than last year, I'm just glad I still have a job. I'm worried that there's going to be real trouble next year when so many people can't find a job." | "Even though I'm earning less than last year, I'm just glad I still have a job. I'm worried that there's going to be real trouble next year when so many people can't find a job." |
As more feel the pinch, more are realising that China's good times may not go on forever. | As more feel the pinch, more are realising that China's good times may not go on forever. |
Some are responding by joining the kou kou zu and limiting their spending - keeping money in the bank for the rainy day that few until now had forecast. | Some are responding by joining the kou kou zu and limiting their spending - keeping money in the bank for the rainy day that few until now had forecast. |
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