>> ASIAONE / BUSINESS / MY MONEY / OPINION / STORY
Wed, Jan 07, 2009
Reuters
Spend only $22 each week

CHINA'S office workers are tightening their belts, cutting back spending on everything from clothes to fast

food, despite government efforts to boost consumption to stave off the effects of a global recession. Websites and blogs popular among young Chinese professionals are extolling the virtues of frugality.

Beijing office worker Wang Hao, 24, launched his campaign last June to curb weekly living expenses to 100 yuan (S$22).

So far, he said, he has 55,000 participants.

'The financial crisis has apparently given a lesson on spending to young people in China, including me,' said Mr Wang, who posted his campaign on a popular forum and on his blog, which has had 178,000 hits.

China has enjoyed phenomenal economic growth for years, giving a huge boost to its domestic consumption.

Young consumers, mostly in their late 20s and early 30s, would spend as much as they earned, if not more, on designer clothes, electronics, entertainment and a wide variety of consumer goods.

Now, at least, some are becoming thrifty.

Besides Mr Wang's cost-cutting crusade, other Internet forums and websites are offering budget tips, such as recipes for meals that cost under 10 yuan.

One website offers '10 Mottos for Financial Winter' with a list that includes avoid quitting your job, starting a business, buying a car and having a baby. Like their counterparts in Western countries, young Chinese white-collar workers in big cities such as Beijing and Shanghai tend to overspend.

A Shanghai government survey last November said office workers in the Chinese financial hub spend an average of 2,500 yuan a month.

With an average monthly income in Chinese cities of 2,192 yuan, that means many office workers are spending more than they earn.

Expensive products such as electronic gadgets and luxury goods have sold like hot cakes in China, especially among young professionals.

As for Mr Wang, he is still grappling with the challenge of getting by on 100 yuan a week for all meals, transportation and entertainment.

In Beijing, 100 yuan buys nine McDonald's Big Mac burgers, roughly half a tank of petrol, a monthly home Internet connection or two movie tickets.

To cut costs, Mr Wang now eats steamed buns for lunch, instead of pizza, and cycles for 20 minutes to work every day, instead of taking buses.

Blogger Lin Yufei, 24, said: 'The point is not only saving money, but to lead a quality life with lower cost.' -REUTERS

 

 
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