Why is the savings rate in China higher than that in the West?

As for why the savings rate of China people is generally higher than that of westerners, I recently saw such a similar question and answer post on the forum of Quora in the United States! (Quora is similar to Zhihu in China! The following are the selected comments of Quora netizens (the original text has been translated), and their answers are very accurate. Be sure to know the facts in this regard.

Jose Marco Bisnar, from the United States, has lived in Beijing since 20 10 and 10.

Try to look at this problem from the Chinese point of view. These factors are closely related to China's high savings rate:

Most people in China or their parents have experienced hunger or poverty. Since 1970s, due to the reform and opening up, China has made great economic growth. Although the family is richer than before, for most of them, decades have not made them forget that they used to live a hungry life. Therefore, China people often have a higher savings rate than westerners to cope with potential risks, which is actually a natural choice.

2) As we all know, before China got married, a house and a car were almost two necessary prerequisites. In the traditional culture of China, owning a house usually means a stable and safe life. I live in Beijing, where the house price is very high, far exceeding the income of ordinary people, which means that the whole family needs to save every penny and spend their life savings on the house.

3) Compared with western countries, China's social credit system has not been widely accepted and its financial system is underdeveloped. People in underdeveloped cities prefer to use cash or savings cards rather than credit cards. Generally speaking, China people will deposit their money into savings cards to avoid excessive consumption and repayment of loans in the future. The underdeveloped financial system means that China usually has fewer investment options, which also contributes greatly to China's high savings rate.

China people seem to have more money, but in fact they are poorer than westerners.

Zhang, Chinese-American

If there are many ways to deposit money in the bank, the deposit interest rate in China is relatively low. In order to prevent your capital from depreciating, ordinary China people have no choice but to keep it in the bank. Let's compare what Americans can do with their money.

1, real estate.

The House of Representatives is the greatest prestige of most Americans. The real estate market in China is booming. There are many speculators, but they account for a small proportion of the total population. Most people buy houses just to make a living. For people living in rural areas (assuming half of the population), they can build on their own land at a lower cost.

2. The stock market.

China's stock market is not as mature as that of the United States, and most individuals who buy stocks are short-term speculators. American stocks have more products for people to deposit for a long time. If I am right, the private financial sector in China is still the highest paid group.

Step 3 retire.

Americans buy their own retirement insurance. China people participate in the state-funded pension scheme.

Therefore, for most people in China, if you have extra funds after buying a house and are not interested in stocks and bonds, then there are not many choices. For them, they can only deposit in the bank. If you are an American, you won't leave it in a savings account, it's a waste of your own money. There are many investment opportunities, and the savings account can be said to have the worst return.

Robles Chen, from the United States and now living in China, is an English teacher, a liberal and a veteran.

I have nothing to say in other western countries, but in the United States, it is because Americans are very reluctant to save. The interest rate of savings account is usually lower than 1%, and occasionally it may be slightly higher than 1%, which is not enough to pay bank charges. After 9 1 1 in America, it is our patriotic duty to go to the shopping center. Obama accused Americans of not spending enough. This is a consumerist economy based on credit, relying on continuous consumption to survive.

Liu Tianyi from China is a game producer.

The magic side is that you saved money and were robbed by the real estate industry, and the country really became rich. China people have done a very good job in maintaining this magical cycle.

There should also be a saying here that money is not saved, but earned!