During the pandemic, Kathy Zhuo and her husband experienced a significant financial setback when they were forced to endure a 50% pay cut. This was particularly challenging for Kathy, as she also had to support her mother who was diagnosed with cancer five years ago.
“We were left with very little money each month. I felt insecure and didn’t know what to do,” says Kathy, a 36-year-old mother of two from Fujian, a province in southern China.
Facing financial uncertainty, Kathy decided to join a growing trend among young Chinese people seeking online partners, known as “da zi,” to share common interests. However, instead of pursuing activities like travel or exercise, Kathy sought out individuals who were focused on saving money.
The phenomenon, dubbed “saving da zi,” gained traction on Xiaohongshu, China’s equivalent of Instagram, in February 2023, garnering 1.7 million views. Topics related to saving partners on platforms like Weibo have also attracted millions of views.
Lu Xi, a public policy professor at the National University of Singapore, sees this trend as a reflection of low confidence in the future economy, despite China’s faster-than-expected economic growth in the first quarter. With ongoing challenges such as a property crisis and mounting debts, many Chinese individuals are feeling the need to prepare for potential hardships.
Despite working in the clean energy sector, which has been a source of stability amid economic uncertainties, Kathy is taking proactive steps to safeguard her finances, especially as friends and family face job losses. In February, she joined several online saving groups predominantly comprised of women aged 20 to 40. Members share their daily budgets and expenses, offering support and advice to curb impulse purchases.
Kathy’s experience with her saving partners has been transformative. Just one month after joining, she managed to reduce her spending by 40% and set a goal to save 100,000 yuan for the year.
Similarly, Wen Zhong, a 30-year-old primary school teacher, has benefited from her saving partners by cutting back on online shopping and embracing a minimalist lifestyle. By engaging in activities like reading and weaving, Wen has found fulfillment beyond material possessions.
While China already boasts one of the world’s highest saving rates, Dr. Lu warns that excessive saving could pose challenges for the government’s economic policies. With households hoarding cash instead of spending, the central bank’s ability to stimulate the economy through interest rate adjustments may be limited.
In the face of economic uncertainties, some individuals, like 32-year-old Ms. Chen from Henan province, have resorted to traditional saving methods, such as keeping cash at home. Despite China’s widespread adoption of cashless payment systems, Ms. Chen finds solace in having tangible savings, especially as she navigates challenges like declining business at her beauty parlour and the financial responsibilities of caring for aging parents and raising children.
Ultimately, for individuals like Ms. Chen and Kathy, saving money provides a sense of security and peace of mind amid uncertain times.
