How to save money and prevent impulsive buying? Chinese women are looking for advice on the networks

During the pandemic, Kathy Zhuo and her husband’s income has decreased significantly. In addition, Zhuo had to take care of her mother, who became seriously ill. “We barely had any money left. I felt insecure, I didn’t know what to do,” the 36-year-old mother of two, who lives in Fujian province in southern China, told the BBC.

She found help and inspiration – like many other young Chinese – on the Internet. She has connected with people who want to share tips on how to save. They use various social networks to communicate, such as Xiaohongshu, sometimes referred to as the “Chinese Instagram”, or the social network Weibo.

Although she herself works in the clean energy industry, which has been the engine of China’s economy for the past year, she says she feels compelled to “prepare for danger” as many of their friends or family members lose their jobs.

Stop impulse buying

In February, she joined several online groups where the majority of members are women between the ages of 20 and 40. They record their budget and expenses every day and also help prevent each other from impulse buying.

According to 36-year-old Zhuo, for example, one woman planned to buy a luxury bag that cost 5,000 yuan (CZK 16,200), but after talking to other women, she bought a much cheaper second-hand bag. Kathy Zhuo says that just one month after she started tackling social media to save money, her expenses dropped by forty percent. This year, he plans to save 100,000 yuan (CZK 323,900).

A 30-year-old teacher working at Wen Zhong Elementary School also started following topics on social networks about saving money. She says she has cut back on online shopping and instead spends more time reading and knitting. She also started selling her handmade products, which brings her extra money. She also mentions that she has switched to a minimalist lifestyle.

Some women have opted for a more traditional way of saving, namely holding cash. Ms. Chen, 32, who runs a beauty salon in Henan province, says she withdraws most of her income from the bank each month and puts it in a box.

Once he has saved 50,000 yuan (CZK 162,000), he plans to put it in the bank and set up a term deposit. “Having cash in my hand makes me feel more at ease,” he says. “When I see that the stacks of banknotes are getting stronger and stronger, I feel safe and satisfied,” he adds.

According to official data, households had about 138 trillion yuan (447 trillion CZK) in the bank, which is about a 14 percent increase compared to the previous year. According to Professor Lu Xi, who works at the National University of Singapore, such a high level of savings may prove to be a problem. He describes that the central bank can support the economy by lowering interest rates and thus savings will become less attractive. However, if people continued to avoid spending and kept saving instead, this could weaken the bank’s ability to influence the economy.