When Wendy Xiao was told she would have to take a nearly 20 per cent pay cut earlier this month, her immediate thought was to make a list of non-essential items.
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As a middle-level manager of a Guangzhou-based state-owned enterprise, she had to come to terms with the fact she might not be able to buy her beloved vintage clothes, Japanese ceramic tableware, or afford her trip to Central Europe planned for early next year.
“This pay cut cycle could last two to three years,” she lamented.
“The state-owned enterprise system has seen an overall decline in pay, and it is not a financial problem that can be solved by a single company.”
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The only expense she refused to cut was the close to 100,000 yuan (US$14,00) a year spending on education, including tutoring fees, for her 16-year-old son.
And Xiao is not alone, as more Chinese middle-class are sticking to their investments in education despite cutting their spending amid the ongoing economic uncertainties.
Property and stock market investments can be put on hold, but investment in education is a must and cannot be compromised