Frugality Grows Among China's Youth Amid Economic Uncertainty

Wed Nov 12 2025 15:07:05 GMT+0200 (Eastern European Standard Time)

With soaring youth unemployment and economic pressures, China's young adults are opting for frugal living, sharing lifestyle tips and budget meals to cope with financial insecurities.

Chinese youth are increasingly prioritizing savings over spending due to high unemployment and economic uncertainty. Influencers promote frugal lifestyles, showcasing ways to minimize expenses. As the government seeks to boost domestic consumption, many young people are cautious about their financial futures.

China is facing a number of economic challenges, and its government wants the next generation of consumers to start spending more for the good of all, but it is not having much luck convincing them to do so.

Officials say insufficient domestic consumption across much of society is dragging on growth, but recent graduates have more reasons than most to be cautious.

Youth unemployment has been hovering at just under 20% for some time; those who have jobs fear they could lose them, and the ongoing property crisis can make the prospect of home ownership seem unreachable, especially in big cities.

This uncertainty is encouraging many of China's youth to instead embrace frugality, and social media has been flooded with tips on how people can survive on small amounts of money.

My work is dedicated to a minimalist way of life, says a full-time influencer who highlights budget tips online.

Videos by 24-year-old Zhang Small Grain of Rice showcase her using ordinary soap for personal care instead of expensive products, while also promoting items that last longer for better value.

Others are focusing on budget eating, like a 29-year-old named Little Grass Floating In Beijing, who shows his followers how to prepare basic meals costing about $1. He says his frugal lifestyle has helped him save over $180,000 in six years.

This trend is not just limited to influencers; the broader economic climate is pushing many young adults to prioritize saving over spending.

China's economy has relied heavily on exports and investment-driven growth, but consumption currently accounts for only around 39% of GDP, compared to about 60% in most developed countries.

Younger generations are reporting feelings of insecurity and pessimism regarding job prospects, with many turning to side gigs or lower-paying jobs in the competitive market.

Economist George Magnus points towards a mismatch of skills among graduates, with many taking jobs for which they are overqualified, reflecting the challenges within the evolving job market.

Helena Lofgren from the Swedish Institute of International Affairs notes that China's reliance on investment and export-led growth has made it vulnerable to economic shifts, further compounding the uncertainty felt by young consumers.

As the government tries to stimulate domestic spending through various incentives, this cultural inclination towards frugality among the Chinese people remains deeply entrenched, impacting their consumption habits now and in the future.