Did you know that the average Chinese household saves 36.1% of their income? That means for every $100 earned, $36.10 is saved. Compare that to Canada’s savings rate of 6.9%, or the U.S. at just 3.5%. The difference is staggering.
Did you know the average Chinese household saves 36.1% of their income? That’s $36.10 saved for every $100 earned, compared to just 6.9% in Canada and 3.5% in the U.S. The difference is huge.
As someone who’s often mistaken for Vietnamese, Japanese, or Korean—I’m actually ethnically Chinese, with roots tracing back to the Han people. My grandparents settled in Malaysia, and I grew up in Canada, where saving money was a core value in our household.
But what happens when you mix one of the highest-saving cultures with one of the lowest? My family is a living example of this cultural clash, and I’ve got some unique insights to share.
In this article, I’ll explore why the Chinese are so good at saving money, how you can adopt some of these habits, and how there’s also a dark side of saving too much.
1. Turn Getting Deals into a Hobby
If you’ve ever been around a first-generation Asian parent who lives in Canada or the U.S., you know they love two things: getting a good deal and Costco. Seriously, Costco is like Disneyland for them. It’s not just about buying in bulk—it’s about the thrill of saving money on every single item.
I swear, my parents have turned saving money and getting deals into a competitive sport with their siblings and friends. Who got the best deal on rice this week? Whose coupon game is the strongest? It’s like their own version of the Olympics.
And let’s not forget the Asian parent glare. Every Asian kid knows the pain of lying about how much something really costs. Splurge a little, and you’re immediately calculating a lower price to tell your parents, just to avoid that disapproving look. It’s like you’ve committed a crime by spending more than $20.
The thing is, for my parents, saving money wasn’t just about being cheap. It’s rooted in their experiences. Many of them came from places where money was tight, and even a small amount saved could make a big difference. So, finding a good deal isn’t just a habit—it’s a survival skill they’ve honed over years. They’ve turned it into an art form, something they take immense pride in. It’s like they’re saying, “Look at how much I’ve saved. Look at how smart I’ve been with my money.”
It’s funny how this all plays out when I was a kid, growing up in a different world of Canada where sometimes you just want to spend money without feeling guilty. The culture clash is real. Growing up, I was trying to navigate a world of brands, trends, and self-care, while my parents are still laser-focused on value per unit. It’s definitely a balancing act—respecting where they come from while also finding my own way to enjoy what I’ve earned.
2) Focus on High-Earning Careers
In Chinese culture, especially among immigrant families, money and prestige are more than just symbols of wealth—they represent security, respect, and the chance to transform a family’s future in a single generation. Many Chinese immigrants start from scratch, working relentlessly to secure a better life for their children, making financial success essential, not optional.
Ronnie Chieng nails this in his comedy special, where he jokes about Asian parents pushing their kids to become doctors—not just to help others but to gain respect and financial stability. For many, becoming a doctor is the fastest way to elevate the family from struggling immigrants to respected professionals.
However, this intense focus can also pressure children into careers they’re not passionate about, leading to stress and unfulfilled lives. While this drive can lead to significant achievements, it also highlights the challenge of balancing personal happiness with the pursuit of status.
These cultural differences reveal contrasting views on money and success. In the U.S., the focus is on enjoying life now, while in China, it’s about saving for the future and maintaining financial independence. Both have their merits but reflect very different philosophies on what it means to live well.
3. Balancing a Scarcity Mindset
A scarcity mindset is common among many Chinese people, especially immigrants like my parents, rooted in experiences of growing up with limited resources. It’s the belief that there’s never enough—whether it’s money, opportunities, or security. This mindset often stems from witnessing financial struggles, where every dollar counts, and there’s a constant worry about making ends meet.
Growing up in such an environment makes you hyper-aware of spending, always hunting for deals and planning for the worst. This mindset can affect all aspects of life, leading to cautious financial habits and a deep appreciation for what you have. It’s why many immigrant families work tirelessly, prioritize education, and build a better life.
However, this mindset also has downsides. Even when financially secure, the fear of not having enough can make you reluctant to take risks or enjoy what you’ve earned, always saving for a rainy day that might never come.
The key is finding balance—being cautious and grateful while allowing room for growth and optimism. It’s important to recognize when you’ve achieved financial stability and shift your focus towards enjoying life, honouring your roots without letting them hold you back.
4. Strong Distaste for Debt
Money is viewed very differently in North America compared to China. In North America, spending is ingrained in the culture, especially after World War II when it was seen as a way to boost the economy. Debt is often seen as a necessary part of achieving the American Dream, used to finance everything from houses to everyday purchases.
In China, the focus is on saving, with a strong aversion to debt. Borrowing money is often viewed as risky or irresponsible. From a young age, people are taught to spend only what they’ve earned and saved. This approach stems from a history of economic uncertainty, emphasizing financial security and self-reliance.
Being debt-free is a source of pride, reflecting control over finances and a stable future. This contrasts sharply with North America, where debt is often seen as a tool for building wealth, highlighting different cultural values around money and security.
5) Zero-Based Budgeting System
In Chinese culture, the concept of a zero-based budgeting system aligns well with traditional values of careful financial management. This method involves planning out every yuan of your income so that, by the end of the month, every cent is accounted for, leaving your balance at zero. Essentially, you assign a purpose to every part of your income—whether it’s for bills, savings, or daily expenses.
The idea behind this approach is to be intentional with your money, ensuring that nothing is left unplanned or wasted. It’s about maximizing the use of every yuan and avoiding unnecessary expenses. This method of budgeting encourages discipline and careful planning, both of which are highly valued in Chinese culture.
While this system can feel a bit rigid, especially when something unexpected comes up, it’s an effective way to stay on top of your finances. It requires a bit of flexibility and adjustment, but it’s a reliable way to see that your money is working for you in the best possible way.
6) Hate Waste
If there’s one thing Chinese parents can’t stand, it’s wasting anything. Whether it’s food, money, or even a plastic bag, nothing goes to waste. Growing up, you probably heard, “You’re not leaving the table until you finish your plate,” and leftovers were always tomorrow’s lunch, no exceptions.
It’s not just about being frugal; it’s about respect. My parents would remind me how hard they worked for everything we had and how lucky we were to have it. Throwing stuff away? Forget it. That old shirt with a tear? Perfect for wearing around the house. Takeout containers? Washed and reused for meal prep. Even the tiniest food scraps got saved and repurposed.
This mindset has its ups and downs. On the plus side, it teaches you to appreciate what you have and be resourceful. But it can also be tiring—sometimes you just want to toss that soggy lettuce or buy a new gadget without guilt.
7) Eating at Home
Eating at home is central to Chinese culture, as well as saving money and bringing the family together. Cooking your own meals ensures the food is fresh, healthy, and prepared just the way you like it, often costing much less than eating out.
In Chinese households, meal planning and home cooking are second nature, allowing you to enjoy traditional dishes that might be expensive or hard to find at restaurants. Leftovers are important, too, often becoming the next day’s lunch, minimizing waste.
While eating out has its place, especially for special occasions, eating at home more often connects you to your culture and family, offering both savings and the comfort of home-cooked meals.
The Dark Side Of Saving Too Much
Saving can become a burden when driven by fear and insecurity. In China, many people save excessively due to the fear of unexpected expenses, job loss, or the pressure to keep up with others. This survival instinct on overdrive often leads to sacrificing present enjoyment for future security.
There’s also cultural pressure, especially from family, to save for major expenses like weddings, homes, or caring for aging parents. These expectations can create constant stress, as saving isn’t just for oneself but for the entire family’s future.
Excessive saving can also harm the economy. When people save too much and spend less, it reduces the money circulating, slows down business activity, and potentially leads to deflation, which can worsen economic problems.
Additionally, a lack of trust in social safety nets like pensions or healthcare drives many to save out of necessity, leading to ongoing anxiety about the future.
While saving is important, when it’s driven by fear or pressure, it can cause significant stress and economic issues. Finding balance is crucial.
If this article got you thinking about your own savings habits, why not take it a step further? At Blueprint Financial, we specialize in helping people like you find that perfect balance between saving for the future and enjoying life now.
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