Why do parents prefer to save money rather than invest in financial management?

First of all, we need to know why parents love saving money so much.

1 Historical perspective: My parents' generation was born in the 1950s and 1980s, and experienced the transition from a planned economy to a market economy, with relatively scarce resources and limited material living standards. This historical background makes them cherish material resources more and actively reserve wealth to cope with possible difficulties.

2. Cultural perspective: In China's traditional culture, the values of advocating frugality and diligence are deeply rooted in people's hearts. Family values are strong. The Report on Social Mentality of China in 20 18 released by China Academy of Social Sciences shows that many parents think it is a responsibility to accumulate wealth for their children. According to the report, 56.3% of the respondents believe that parents should try their best to create conditions for their children. This cultural background leads parents to be more willing to save money to ensure their children's future.

3 Anthropological perspective: From the anthropological perspective, under the environment of limited resources, human beings often adopt reserve strategies to deal with the uncertainty of the future. Parents' generation grew up in an era of relatively scarce resources, so they are more inclined to reserve wealth.

Sociological perspective: social structure and social environment have an important influence on people's behavior and ideas. In the parents' era, the national welfare system was relatively good, such as pension and medical care. This enables them to rely on the social security system in the face of some emergencies without losing everything. In addition, the social atmosphere of that era was conservative, and people generally pursued a stable and safe life, which also made them more willing to save money.

5 Consumption concept and investment concept: Compared with the younger generation, the consumption concept of parents' generation is relatively conservative. They pay more attention to practicality and cost performance, rather than pursuing fashion and trends. This makes them more rational in consumption and better control their expenditure. Nielsen's 20 19 China Consumption Trend Report shows that compared with the younger generation, the consumption concept of parents' generation is relatively conservative. The report pointed out that they pay more attention to practicality and cost performance when shopping.

In terms of investment, they tend to pay more attention to cautious investment methods, such as buying real estate and gold, rather than pursuing high-risk and high-return investments. This investment philosophy helps them to accumulate wealth more steadily. The China Family Wealth Report 20 19 released by Ant Financial shows that the parents' generation is more inclined to make steady investments, such as buying real estate and gold. The report shows that investment in physical assets accounts for more than 45%.

6 Work concept: Parents' generation tend to pay more attention to stable work, and will not frequently jump ship or try entrepreneurial projects with high uncertainty. This stability makes their income sources more reliable and is conducive to accumulating wealth. According to the Survey Report on Workplace Situation in China in 20 19 released by Zhaopin, the parents' generation pay more attention to stable jobs and are unwilling to change jobs frequently. The report shows that the job-hopping rate of middle-aged and elderly employees is much lower than that of young employees.

7 Influence of social circle: The social circle of parents' generation is relatively small, and their circle of friends is often friends and relatives accumulated for a long time, rather than extensive contacts established through social media. This makes them less under social pressure on consumption and easier to control their own expenses.

8. The influence of the Internet age: Compared with the younger generation, under the influence of the Internet age, the consumption of the parents' generation is relatively low. This means that when they are faced with various advertisements and promotional information, they are less tempted and more likely to resist unnecessary consumption.

Living habits: My parents' generation developed frugal living habits since childhood, such as careful planning, homemade food, sewing clothes, and so on. These living habits enable them to save a sum of money on their daily expenses, which makes it easier for them to accumulate wealth.

So what ways do parents save money?

1 savings deposit: saving money into a bank savings account is the most common way for parents to save money. This method has the advantages of high security, simple operation and good liquidity, but the interest rate is low, usually lower than the inflation rate. Therefore, saving money in this way for a long time may lead to a decline in the actual purchasing power of wealth.

2 buy government bonds: parents will also buy government bonds as a way of saving. National debt has the characteristics of high security and low risk, but the yield is relatively low. For parents who pursue a stable income, this is a more suitable choice.

3 buying real estate: real estate investment is the first choice for parents to save money. In the past few decades, the real estate market in China has maintained rapid growth, and many people have realized the appreciation of their wealth by buying real estate. However, the real estate market fluctuates greatly, and the regulatory policies are uncertain. Therefore, the benefits and risks of future real estate investment also need attention.

4 buy gold: gold is considered as a safe-haven investment, and many parents put some money into the gold market. However, the price of gold fluctuates greatly and the yield is unstable. In addition, the liquidity of gold is relatively poor, and it needs to be sold in the market to realize it.

5 Buy insurance: Parents may buy some savings insurance products, such as dividend insurance and universal insurance. These products not only provide protection, but also have a certain investment income. However, insurance products usually have long investment periods and relatively poor liquidity.

6 Investing in stocks and funds: Although parents are generally conservative about the stock and fund markets, some people still choose to invest in stocks and funds. This investment method has high income potential, but the risk is relatively large, which requires investors to have certain risk tolerance.

Parents' concept of thrift may have a certain impact on parenting.

The material supply for children is too rich: because parents pay attention to saving money, they may try to provide their children with richer material conditions, hoping that their children can enjoy a better life. However, excessive material supply may lead children to rely too much on their parents and lack the ability to live independently and deal with problems.

Over-emphasis on thrift: In family education, parents may over-emphasize the values of thrift, making their children too sensitive to money and material things when they grow up. This may lead children to be too conservative in consumption concept and lack confidence in their own needs and wishes.

Pay too much attention to material security: parents' frugality may lead them to pay too much attention to material security and ignore their children's psychological, emotional and spiritual growth. This may lead to psychological problems such as anxiety and depression when children grow up.

Children are not encouraged to innovate and take risks: parents may be conservative in their concept of saving, which may make them overemphasize stability and safety when educating their children. In this environment, children may lack innovation and adventurous spirit, and may be too cautious about new things and challenges.

Lack of financial education: Although parents attach importance to saving money, they may not systematically educate their children on how to manage money reasonably. Children may lack understanding and practical experience in financial planning, investment and financial management during their growth.

In short, the living expenses that parents can save more are influenced by the big environment at that time. For young modern people, there is absolutely no need to feel anxious. According to your actual situation and wishes, choose a more suitable way of saving.