This generational shift stands in stark contrast to the spending habits of the 'moonlight' generation from the 1980s and 1990s, who enjoyed greater economic growth and job security.

Cultural sentiments among Gen Z, such as 'tang ping' (lying flat) and 'sang' culture, indicate a sense of defeatism and disillusionment with societal pressures.

On social media platforms like Xiaohongshu, many users under 30 are actively sharing tips on saving money, with over 1.5 million posts and 130 million views on related content.

As a result of these trends, the reduction in consumption could significantly impact China's economic growth, which recorded a 5% GDP increase in 2024 but is expected to face a slowdown in the coming years.

Data from Yu'e Bao reveals that users born after 2000 are making an average of 20 deposits a month, doubling from earlier in the year, with individual account balances reaching nearly 3,000 yuan, a 50% increase year-on-year.

Economists are increasingly concerned that the frugal spending habits of Generation Z could hinder China's domestic consumption and overall GDP growth.

This shift in financial behavior is reshaping consumer habits across China, as young adults prioritize savings over spending.

The growing trend of frugality among China's Gen Z is largely influenced by economic disruptions stemming from the pandemic and a crisis in the property market.

The current generation's pessimism is highlighted by high youth unemployment, which peaked at 21.3% in mid-2023, with revised figures showing 15.7% unemployment by the end of 2024.

In response to economic uncertainties, many young people are increasingly seeking stable government or state-owned jobs, with some, like Su, preparing for civil service exams.

Reflecting this broader trend of austerity, 26-year-old Lily Li, a high school teacher, saves 80% of her salary, prioritizing job security.

Similarly, Ava Su, a 26-year-old employee at Alibaba, is cutting back on impulse purchases and aims to save 2 million yuan, nearly 100 times her monthly salary.