A recent survey conducted by the Shenzhen Special Zone Daily has shown that 36 percent of young people in the city use up their salary every month, and another 15 percent spend more than they earn and rack up credit card debts in the process.
The survey, which polled white-collar workers aged between 22 and 27 in the city's central business district (CBD) with less than five years of work experience, has revealed a generation of spendaholics are taking shape. The group of people, called the "moonlight generation," prefers living a better life today to saving for tomorrow.
"Even I have only 500 yuan (US$63) in my pocket with those unpaid bills, I will still go out to meet friends at bars and karaoke halls," said a recent graduate surnamed Jiang.
"Nothing is more important than happiness," he said.
The hedonism has been blamed on today's celebrity culture, as young people try to keep up with the fast-paced lifestyle of their favorite stars.
The lack of money management among young people is a source of grave concern for financial professionals.
"Hardly anyone is given proper financial training when they are teenagers," said Li Jiwen, a financial consultant.
"Few are taught how to manage their money by their parents and there is no budget teaching at school. By the age of 18 they are being bombarded by credit card companies."
But Li admitted that young people live "in a consumer culture where we equate happiness with new clothes, holidays or a new car."
However, some members of the "moonlight generation" argue that they spend everything they earn because they earn little anyway.
Sixty-one percent of the interviewees said they earn less than 3,500 yuan a month in a city where renting part of an apartment costs 1,000 a month.
"Debts are common to young people living in Shenzhen. We earn few money but need to afford accommodation, clothing and entertainment in such a costly city," said a female receptionist surnamed Liu, who currently works for an insurance company.
On average, the group spend 65.9 percent of their monthly income on dining out, clothes, beauty products, entertainment and travel.
"We are spenders not savers," Liu said.
Although 80.8 percent of the surveyed said they have a blueprint for their financial future, most of them cannot save more than 20 percent of their total income.
About 28 percent of the young people choose to live with their parents or relatives to save on rent.
"I have lived with my uncle for two years since I started to work in the city in 2004," said a young man surnamed Cheng. "I sacrifice some freedom while saving on the rent, but I decide to move out as soon as I have enough money to pay for an apartment based on an installment plan."
"Spendaholism" is considered a kind of disease in developed countries.
Out-of-control shopaholics are put under the microscope to help them control their spiraling debt.
Strict budgets are set and spending guidelines administered, offering the spendaholics a new spending life full of cheaper, more creative and ultimately more satisfying ways to spend their money.
But the gain is not without pain, first they must experience "cold turkey" for a week and live on less than they ever imagined possible.
(Shenzhen Daily July 21, 2006)
