What are some of your parents’ tricks to save money?

First of all, we need to know why our parents love to save money so much?

1 Historical perspective: The generation of my parents was born between the 1950s and the 1980s. They experienced the transition period 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 traditional Chinese culture, the values ??of advocating thrift and housekeeping are deeply rooted in the hearts of the people. The concept of family is strong. According to the "2018 Chinese Social Mentality Research Report" released by the Chinese Academy of Social Sciences, many parents believe that it is a responsibility to accumulate wealth for their children. The report shows that 56.3% of the respondents believe that parents should try their best to create conditions for their children. This cultural background makes parents more willing to save money to ensure the future of their children.

3 Anthropological perspective: From an anthropological perspective, humans often adopt reserve strategies to cope with future uncertainties in environments with limited resources. Their parents’ generation grew up in an era when resources were relatively scarce, so they tended to hoard wealth.

4 Sociological perspective: Social structure and social environment have an important impact on people's behavior and ideas. In my parents' time, the country's welfare system was relatively good, with relatively complete protections such as pensions and medical care. This allows them to rely on the social security system when facing some emergencies without having to go bankrupt. In addition, the social atmosphere of that era was relatively conservative, and people generally pursued a stable and safe life, which also made them more willing to save money.

5 Consumption concepts and investment concepts: Compared with the younger generation, the consumption concepts of the parents’ generation are relatively conservative. They pay more attention to practicality and cost-effectiveness rather than pursuing fashion and trends. This allows them to be more rational in their consumption and better control their spending. According to the "2019 China Consumer Trends Report" released by Nielsen, compared with the younger generation, the consumption concepts of the parents' generation are relatively conservative. The report points out that they pay more attention to practicality and cost-effectiveness when shopping.

In terms of investment, they tend to pay more attention to sound investment methods, such as purchasing real estate, gold, etc., rather than pursuing high-risk, high-return investments. Such investment concepts help them accumulate wealth more securely. According to the "2019 China Household Wealth Report" released by Ant Financial, 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: People of their parents’ generation tend to value stable jobs and will not frequently change jobs or try entrepreneurial projects with high uncertainty. This stability makes their source of income more reliable and conducive to wealth accumulation. According to the "2019 China Workplace Situation Survey Report" released by Zhaopin Recruitment, the parents' generation values ??relatively more stable jobs and is unwilling to change jobs frequently. The report shows that the job-hopping rate of middle-aged and older employees is much lower than that of younger employees.

7 The influence of social circles: The social circles of parents’ generation are relatively small, and their friend circles are often relatives and friends accumulated over a long period of time, rather than extensive connections established through social media. This makes them less socially pressured to consume and makes it easier for them to control their spending.

8 The influence of the Internet age: Compared with the younger generation, the parents’ generation has a relatively low degree of consumption exposure under the influence of the Internet age. This means that they are less tempted when faced with various advertising and promotional messages and are more likely to resist unnecessary consumption.

9 Living habits: People of their parents’ generation have developed frugal living habits since childhood, such as careful budgeting, home-made food, mending clothes, etc. These lifestyle habits allow them to save money on daily expenses, making it easier to accumulate wealth.

So what are the ways parents save money?

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

2 Buying treasury bonds: Parents’ generation will also buy treasury bonds as a way of saving. Treasury bonds have the characteristics of high safety and low risk, but the yield is relatively low. This is a more suitable choice for parents who are pursuing stable income.

3 Buying real estate: Real estate investment is a more popular way of saving money for parents’ generation. Over the past few decades, China's real estate market has maintained rapid growth, and many people have increased their wealth by purchasing real estate. However, the real estate market is highly volatile and there is uncertainty about regulatory policies. Therefore, the returns and risks of future real estate investments also need to be paid attention to.

4 Buy gold: Gold is considered a safe-haven investment, and many parents invest part of their money in the gold market. However, gold prices are volatile and yields are unstable. In addition, gold is relatively illiquid and needs to be sold on the market to be liquidated.

5 Purchase insurance: Your parents may purchase some savings insurance products, such as participating insurance, universal insurance, etc. While providing protection, these products also provide certain investment returns. However, insurance products typically have long investment horizons and are relatively illiquid.

6 Invest in stocks and funds: Although their parents generally have a conservative attitude towards the stock and fund markets, some people still choose to invest in stocks and funds. This investment method has high return potential, but the risk is relatively high and requires investors to have a certain risk tolerance.

Parents’ saving concepts may have a certain impact on child care.

Excessive material supply to children: Because parents value saving money, they may strive to provide their children with richer material conditions in the hope that their children can enjoy a better life. However, too much material provision may cause children to be too dependent on their parents and lack the ability to live independently and deal with problems.

Over-emphasis on frugality: In family education, parents may over-emphasize the value of frugality, causing their children to be overly sensitive to money and material things as they grow up. This may lead to children being overly conservative in their consumption concepts and lacking confidence in their own needs and wishes.

Excessive focus on material security: The saving concept of parents may lead them to focus too much on material security and ignore the psychological, emotional and spiritual growth of their children. This may lead to psychological problems in children as they grow up, such as anxiety and depression.

Insufficient encouragement of innovation and risk-taking in children: Parents may have a conservative concept of saving, which may cause them to overemphasize stability and security when educating their children. In this environment, children may lack the spirit of innovation and risk-taking, and may be too cautious about new things and challenges.

Lack of financial education: Although parents value saving money, they may not systematically educate their children on how to manage finances reasonably. Children may lack understanding and practical experience in financial planning, investment and financial management, etc. when growing up.

In short, the fact that parents were able to save more money for housing was affected by the general environment at that time. For young modern people, there is no need to feel anxious. We should choose a savings method that is more suitable for us based on our actual situation and wishes.