How China’s ‘Rat People’ Are Teaching Gen Z to Rethink Money

This post was originally posted on Planner Bee.

In the basements of China’s largest cities, tiny flats no larger than a walk-in wardrobe are home to a new financial mindset. The people living there call themselves the “rat people”. While the name might conjure images of hardships, their lifestyle choices are deliberate, even radical.

Far from being a symbol of failure, China’s “rat people” represent a growing subset of Gen Z who are responding to burnout, economic pressures, and the rising cost of living by choosing minimalism, reflection, and flexibility over competition and conformity.

This is more than a passing trend. It’s a movement with useful insights, not just for China’s youth, but for anyone trying to make sense of life in a world shaped by inflation, job insecurity, and shifting definitions of success. There’s something here worth paying attention to.

How the ‘rat people’ emerged through burnout, quiet quitting, and minimalist rebellion

China’s rapid economic expansion brought wealth, but also intense pressure. For young people, especially Gen Z, the stakes have only grown steeper.

Skyrocketing housing prices, a hyper-competitive job market, and societal expectations around family and career have left many feeling discouraged. In response, subcultures like tang ping (“lying flat”) and bai lan (“let it rot”) have emerged, rejecting hustle culture and embracing a slower, more minimal way of living.

The “rat people” take it a step further. Many live in the underground flats of cities like Beijing, Shanghai, and Shenzhen. They keep life simple. Some are freelancers, others work odd jobs. Most have stepped away from traditional milestones like marriage, car ownership, or climbing the corporate ladder. Instead, they focus on cutting expenses, protecting their mental health, and crafting a version of life that feels bearable and sometimes even joyful.

They are, in many ways, financial survivalists for the modern era. And they have lessons worth hearing.

Why the ‘rat people’ deserve attention

At first glance, their lifestyle might seem like giving up. But take a closer look, and it’s clear they’re not retreating. They are making a choice.

These young adults are asking hard questions that previous generations often avoided: Why is owning a home seen as essential? Is constant ambition really worth it? How much money do we need to live well?

With financial stress becoming more widespread and burnout more common, these questions are timely. The rat people aren’t simply getting by. They are rethinking what financial success looks like. Their approach offers practical insights anyone can use.

1. Cut costs without losing control

Rather than getting caught in lifestyle inflation or social comparison, the rat people practice extreme but intentional frugality. Many live in basement rooms at a fraction of what a regular apartment would cost. They reuse, repair, and repurpose. They don’t eat out unless absolutely necessary.

It might seem extreme, but it’s grounded in a clear idea: controlling your costs gives you more control over your life.

The key takeaway? Budgeting doesn’t have to feel like a punishment. It’s a way to gain autonomy. You don’t need to live underground, but choosing a smaller apartment, forgoing luxury goods, or prioritising secondhand purchases can help create space for what really matters.

2. Rethink the homeownership timeline

In China, as in many other places, owning a home has long been seen as a prerequisite for adulthood, marriage, and success. But with rising property prices, many rat people are choosing not to buy or delaying ownership indefinitely.

This challenges a deeply held belief, and it may be a smart move. Taking on a mortgage early can limit your career options, raise stress levels, and inflate your financial risk. By renting affordably and avoiding long-term debt, rat people preserve flexibility. They see housing as a service, not a symbol of success.

For Gen Z and others, the message is clear: owning property isn’t the only way to build stability. There’s no set timeline. What matters more is whether your choices are sustainable both financially and emotionally.

Read more: The Hidden Costs of Owning a Home in Singapore

3. Build a budget around mental health

Many rat people don’t focus on earning the highest income. Instead, they structure their budgets around mental well-being. This can mean working fewer hours, turning down promotions or avoiding toxic workplaces, even if it means earning less.

The idea is simple but powerful: _your job should support your life, not overtake it. _For this group, mental health is not an afterthought, it’s a budget line. Whether it’s therapy, travel, rest or creative time, they budget for what keeps them stay well.

In a culture where overwork is often glorified, this is a thoughtful and necessary shift. Ask yourself: which expenses genuinely support your well-being? Which ones drain it?

Spending in line with your values can be a powerful financial decision.

Read more: A Guide to Mental Health Insurance in Singapore

4. Define success for yourself

Rat people reject common measures of success, such as career titles, car brands, large homes, and focus instead on what brings satisfaction. That might be having time for hobbies, the freedom to freelance, or simply getting enough sleep.

This shift from status to satisfaction is crucial. Financial planning isn’t about climbing the same ladder as everyone else. It’s about building a life you actually want to live. Rat people don’t see themselves as poor, they see themselves as free.

When success is personal, not social, it’s easier to avoid spending money for the sake of appearances. And that can help protect you from lifestyle inflation.

Read more: Understanding Lifestyle Creep and How To Break Free

5. Invest in flexibility as well as security

Most financial advice emphasises security: saving for retirement, building an emergency fund, securing stable employment. All of that is still important, but rat people also prioritise flexibility.

By keeping their expenses low and avoiding long-term debt, they leave themselves with options. They can quit toxic jobs, switch careers, travel or explore personal projects. These are the things that would be impossible with rigid financial commitments.

Flexibility is another kind of security, especially in a volatile world. The takeaway? Don’t just invest in things that protect your future. Invest in the freedom to make changes now.

Read more: What’s an Emergency Fund and How Much is Enough?

The rat race isn’t the only race

The “rat people” aren’t perfect role models. Their lifestyle can be isolating, and their choices often come from economic necessity.

Even so, they represent something important: a generation that refuses to play by broken rules.

Instead of climbing the career ladder, they’re stepping off it entirely, and building something slower, quieter, and maybe smarter.

In an age where mental health crises, job insecurity, and financial anxiety are rampant, Gen Z isn’t just surviving, they’re finding new ways to cope. The real question isn’t whether you’d want to live exactly like the rat people. It’s what you can take from their approach to improve your own life.

Read more: How Quiet Quitting Can Help You Pursue Your FIRE Goals