Comments on: China’s savings habit http://www.creditwritedowns.com/2009/09/chinas-savings-habit.html Finance, Economics and Markets Thu, 09 Feb 2012 21:54:06 +0000 hourly 1 By: Anonymous http://www.creditwritedowns.com/2009/09/chinas-savings-habit.html#comment-57013 Anonymous Sun, 06 Sep 2009 02:25:00 +0000 http://www.creditwritedowns.com/2009/09/chinas-savings-habit.html#comment-57013 In China, if one has a connection with high profiled administration, he/she can borrow a lot of money with lower rate than the saving rate, then those money goes to saving accounts. In China, if one has a connection with high profiled administration, he/she can borrow a lot of money with lower rate than the saving rate, then those money goes to saving accounts.

]]> By: P.Helix http://www.creditwritedowns.com/2009/09/chinas-savings-habit.html#comment-57004 P.Helix Fri, 04 Sep 2009 20:01:00 +0000 http://www.creditwritedowns.com/2009/09/chinas-savings-habit.html#comment-57004 In China they do not have pension... they do not have a social net. There are no benefits.. So, if you want anything, you have to save for it. If you want a safety net, you save for it.. Generally because of this, the family unit is tighter... Parents help kids out (say a deposit for a home).. kids support parents.. no need for "paid" child care.. grandparents step in (apart from just spending more time with them).. the money is just pooled... Of course the downside is that a family could have their saving s blown in the event of an emergency.. but on the other hand.. what do you think the government is downing with your tax? A good compromise/hybrid model is Singapore. The government "encourages" savings, but this is ringfenced for your needs/pension. This tax is not excessive, so you still have the family savings as traditionally you still have the intra-family support. http://en.wikipedia.org/wiki/Central_Provident_Fund In China they do not have pension… they do not have a social net. There are no benefits..
So, if you want anything, you have to save for it.
If you want a safety net, you save for it..

Generally because of this, the family unit is tighter…
Parents help kids out (say a deposit for a home).. kids support parents.. no need for “paid” child care.. grandparents step in (apart from just spending more time with them).. the money is just pooled…

Of course the downside is that a family could have their saving s blown in the event of an emergency.. but on the other hand.. what do you think the government is downing with your tax?

A good compromise/hybrid model is Singapore. The government “encourages” savings, but this is ringfenced for your needs/pension. This tax is not excessive, so you still have the family savings as traditionally you still have the intra-family support.
http://en.wikipedia.org/wiki/Central_Provident_Fund

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