With the cost of living skyrocketing, young people are increasingly cutting their own hair and grooming their own pets to save money. (Image: Getty Image Bank via Yonhap)
SEOUL, Jan. 5 (Korea Bizwire) – As the new year dawns, persisting high inflation continues to impact South Korea’s MZ generation (Millennials and Generation Z), prompting them to find various ways to tighten their belts.
These younger generations are not only increasing their income through ‘side hustles’ or frugal financial planning but are also looking for ways to reduce costs for services they previously spent significant money on. Many share their methods on platforms like YouTube and social media.
For instance, Shin, a 34-year-old office worker in Seoul’s Gwanak District, hasn’t visited a hair salon in over a year. The cost of a haircut, especially for women, often exceeds 30,000 won, with additional charges for perms or coloring, leading her to forgo salon visits altogether. Instead, she occasionally gets her hair cut by her sister.
Men are also finding similar solutions, with some choosing to grow their hair out to save on haircut costs, while others take to coloring their hair at home.
Jung, a 30-year-old businessman in Seoul, has been maintaining a long hair style. “Initially, I stopped getting haircuts out of a desire to grow my hair long once in my life. But I realized I could save the 50,000 won I used to spend regularly on cuts and perms, making it economically sensible,” he said.
Statistics confirm the financial strain on the MZ generation and their shift towards frugal consumption. According to Statistics Korea, the average monthly income of single-person households in the third quarter of last year fell by 2.4% compared to the same period the previous year, while the average income of all households rose by 3.4%. Many of these single-person households are unmarried professionals in their 20s and 30s, indicating a disproportionate impact on the younger generation.
With reduced incomes, single-person households are cutting back on discretionary spending, particularly in areas like clothing, footwear, and food and accommodation.
Jeon, a 30-year-old office worker in Yangju, Gyeonggi Province, recently hosted friends at home instead of eating out, finding it more economical to make their drinks.
Experts suggest that the COVID-19 pandemic has amplified uncertainties about the future, and the continued high inflation and high interest rates have established a culture of saving among young people.
Kwak Keum-joo, a psychology professor at Seoul National University, cautions, “While saving is a good habit, excessive frugality that harms health or isolates individuals from social relationships should be avoided.” There is also concern that overly restrained consumer spending could further strain small businesses.
Lina Jang (linajang@koreabizwire.com)
