Despite Gen Zers worldwide accumulating debt, China's young people are practicing "revenge saving."

• Extreme monthly savings targets are being set by Chinese youth as revenge saving becomes a popular trend on social media.
• Community canteens, which offer affordable fresh meals for the elderly, are also part of the savings measures.
• Social media is being used by others to form "savings circles" with partners, ensuring they adhere to their savings goals.

Despite the post-pandemic revenge spending, in one part of the world, there's a trend of revenge saving.

Despite the economic downturn, China's young are saving diligently.

Extreme monthly saving targets are being set by Chinese youth as revenge saving becomes a popular trend on Chinese social media websites.

The 26-year-old with the username 'Little Zhai Zhai' is sharing her strategy to limit her monthly spending to 300 Chinese yuan ($41.28), as shown in a recent video where she reduced her daily meal expenses to 10 yuan ($1.38).

Social media is being used by others to find "savings partners" who form a savings circle to help them achieve their goals. In addition to this, they also dine at community canteens, which offer fresh meals at affordable prices for the elderly.

According to China Market Research Group's Managing Director Shaun Rein, Chinese youth possess a revenge savings mentality. Unlike the youth of the 2010s who spent more than they earned and borrowed money to buy luxury items, young Chinese are now saving more.

Younger Chinese are increasingly adopting the trend of "reverse consumption" and embracing a "stingy economy," which involves being more mindful of spending and actively seeking out discounts and deals when shopping.

In contrast to the majority of Gen Zers in the U.S., who prefer to finance their expenses through debt, a report by Intuit's Prosperity Index found that 73% of this generation would rather prioritize a better quality of life over saving money.

'No choice' but to spend less?

So why are Chinese youngsters getting increasingly circumspect with their spending?

According to Christopher Beddor, deputy director for China research at Gavekal Dragonomics, young people likely share the same perception as everyone else: the economy is not performing well.

According to a recent report from the People's Bank of China, the total RMB deposits by households in the first quarter of 2024 experienced an 11.8% year-on-year increase.

Despite China's first-quarter GDP growth exceeding expectations at 5.3% year-on-year, projections indicate a slowdown, with the International Monetary Fund predicting a 4.5% growth rate in 2025.

The tight labor market is particularly challenging for young people, according to experts, as reported by CNBC.

Jia Miao, an assistant professor at NYU Shanghai, stated that people not spending money is a common occurrence. She explained that for some young individuals, it's due to unemployment or the difficulty in increasing income. As a result, they are forced to spend less money.

The unemployment rate among young adults aged 16 to 24 in May was 14.2%, significantly higher than the national average of 5%. Despite the lack of official monthly wage data for undergraduates, a survey revealed that the average monthly salary of those who graduated in 2023 was 6,050 yuan ($832), a 1% increase from the previous year, according to domestic reports compiled by MyCOS research and published on local media.

Rein stated that the youth have lost confidence and animal spirits, and it may take years for a boom market to make them feel comfortable to spend again.