Why do people in China love to save money?

The first thing I want to talk about is the weak social security system. From the data point of view, in 2008, China's social security expenditure accounted for 7.5% of the central government, Germany exceeded 55%, and the United States exceeded 30%.

To put it simply, the government of China has invested too little in social security systems such as social security and medical insurance, which leads to a weak social security system compared with European and American countries. Ordinary people look down on illness, children can't afford to go to school, and when they are old, they lack adequate protection and dare not spend at all. This is the fundamental reason why China people dare not spend money.

The gap between the rich and the poor is widening.

In addition, the widening income gap is also an important reason for China's low consumption rate and high savings rate. The rich and the poor have different marginal propensity to consume. Low-income people get 100 yuan to spend in 88 yuan, and high-income people get 100 yuan to spend only in 64 yuan. At present, the "February 28th effect" of China's income distribution is increasingly obvious, and more and more money is concentrated in the hands of 20% of the rich.

Lack of consumer confidence

Another important factor is the lack of consumer confidence. Why do ordinary people dare not spend? The financial crisis has made people pessimistic about the economic prospects, so they naturally tend to save in banks, thus reducing consumer spending.

Excessive consumption expenditure

At the same time, soaring housing prices, medical care, education and other expenses are further hitting the spending power of ordinary people.

Traditional cultural factors

Aside from these factors, we should also admit that China people love to save money because of their culture and consumption habits. China's high savings rate is closely related to the cultural tradition of "advocating thrift and opposing luxury" in East Asia. Many Latin American countries are not rich, but the savings rate is very low, and residents spend it quickly after getting their wages. This is one of the cultural factors.

Family structure restriction

In addition, there are reasons for family structure. People in China generally have a close family structure, and the family bears a lot of social responsibilities such as providing for the elderly and raising children. As China enters the old age society, the responsibilities of the family are getting heavier and heavier, which determines that China people decide how much to spend according to their income, while Americans spend money according to the increase of future wealth.