Why China May Fare Better Financially Than Western Countries in the Aftermath of COVID-19
When all is said and done, China (or at least the average Chinese citizen) may fare better than their Western counterparts during the current economic crisis. Here’s why:
- Most Chinese citizens 40 years and older don’t have liabilities like Americans & other Westerners. They don’t carry personal debt on credit cards. While the younger generation is much more likely to have personal debt, their older relatives aren’t.
- Having a significant personal savings is the norm. Even those without savings often have parents that can act as a life preserver if their ship sinks…so to speak.
- Living paycheck to paycheck is less common amongst Chinese citizens. A higher priority is put on living within your means in comparison to the West. Cultural factors also help…for example you won’t find a payday loan businesses in China.
From a financial standpoint, it doesn’t mean the crisis isn’t painful, but I think most Chinese are positioned better to make it through.
And for those that don’t fare well, the Chinese emphasis on community – be it family, friends, or a greater network of colleagues – will help carry them through.
#China #Westerners #Americans #COVID19 #Debt #Savings #PersonalFinance