Spending and saving habits
Chinese culture and American culture are very different. They have very unlikely spending and saving habits. The personal saving rate in China is very high (about 30%) compare to the US. Chinese's spending and saving habits were formed during the 1960s and '70s, an era when food and material goods were scarce and they couldn't waste or discard anything that could use. Most Chinese save as much as possible which about half of what they earn. Usually Chinese don't buy things on credit. If they borrow money and spend what they hadn't already earn, they will fell nervous. Credit cards are still rare in China and most people pay for everthing in cash. Chinese like to look for a bargain and it looks that haggling is a way of life. Also, Chinese usually give cash gifts to family members or friends on every new year, brithday or wedding. I thing that when Chinese feel more confident about social security, health and education cost, they will spend more money.
Americans have a high-debt culture, a culture of high credit card and installment balances. They like to spend money and can't save more. Some Americans even spend more than they earn. They like to use credit cards to purchase anything even major items. So it causes the personal saving rate close to zero. Also, Americans don't like cash gifts and they thing that cash is a less common gift because it's considered to be less thoughtful.
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That's true.The most difficult thing is trying to acclimate to the new country.
ReplyDeleteWhat you just explained in this post is so true! And the idea of the cash gifts is very interesting to me. I remember that when my mom gave money to my cousin once for some important date, her grandmother saw this as a very rude thing to do. The reason, I guess, is that some people may think that you don't even try to find a real gift for that person and you don't want to waste your time. Of course I disagree with this but it is still an interesting view.
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