Why the Chinese Save More and How You Can Do the Same

Why are the Chinese more financially stable than other areas of the world? What is so different for them that their bank accounts are growing higher? Read on to find out.

Helen Wang, author of The Chinese Dream: The Rise of the World’s Largest Middle Class and What It Means to You, was interviewed by CNNMoney and provides some great insight as to why there are major differences in the savings accounts of the Chinese versus the rest of the world.

We’ll share some of her assertions as well as the lessons that can be learned from them. Wang’s realizations about Chinese culture may just help you build up your level of savings, regardless of where you call home.

Their economy is different

While most other nations are facing troubled economics time with high unemployment rates and low credit scores, Wang reveals that the Chinese economy has continued to thrive. She states that business opportunities have increased dramatically over the last couple of decades, with their income more than tripling in the area of Chinese state companies.

Lesson to learn: Certainly, it helps to live in an environment where financial opportunities are plenty, but even though the world around you impacts your overall financial status, you can’t discard your personal responsibilities with your own money.

People in both locations are thriving or failing despite the odds, so how you handle your own money is the deciding factor when it comes to how full your bank account gets.

The more blame you place on outside factors the more you turn over control of your financial situation. Choose to defy the trends and make your own financial success your priority. Look for areas that are booming and find ways to get involved in them if you can.

They begin saving when they get married

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Wang points out that the younger generation in China tends to spend all of their money on what they consider “Western luxury brands” but once they get married they start to save. She doesn’t give any real explanation as to why, but any financial analyst will tell you that the sooner you begin to save, the more money you’ll have in the future..

Lesson to learn: No matter what your relationship status, saving should be a priority – especially if you’re starting out as a newly married couple. With some major expenses at hand, such as a house and raising kids, you’re going to need the biggest financial savings net you can get. Create a budget that allows you to put money away monthly so that you’ll have enough to support you when times get tough financially.

They recognize financial opportunity

raised hands in front of drawn money tree

Although China is growing at lightning speed rates, Wang reinforces that their society understands that it won’t always be that way. Things will slow eventually and they won’t have the same opportunities to earn cash as easily as they are right now.

Lesson to learn: If you have the chance to make money, get it while you can. It may mean that you have to work a few extra hours in the meantime or put in weekends that you’d rather have off, but you’ve got to take advantage of the ability to pull in higher levels of income while you can.

If you don’t, you may not reach your financial goals and give yourself that safe and secure peace of mind that comes with a well-funded savings account. Working a little harder now may mean that you can relax a little more later. It is a trade-off, but one that will secure your financial future.

Remember that explanations such as these are simply that, explanations. They’re not there to use as excuses as to why you’re doing better or worse than others in the world around you.

In the end, it is up to you how well you do at building up your own savings, so the sooner you start to take responsibility for your own financial actions, the better – and the bigger your bank account will become. Learn from these lessons and watch your money grow!

About the author

Christina DeBusk

Changing careers mid-life from law enforcement to writing, Christina spends her days helping others enrich their businesses and personal lives one word at a time.

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