Being an expat can be best explained as the definition of change. New language, customs, culture, food, home, school/employment and more can be an amazing adventure. Something else that changes with becoming an expat is how money is spent. After four months of noodles and rice, spending 100 RMB on Nutella and whole wheat bread might be a worthy purchase. Others might find themselves throwing down big money for a pair of hiking boots or Gucci heals. It seems as though expatriates all have a special something that can unlock even the thriftiest of wallet carriers.

Why locate to China?

Some of the obvious reasons for moving to China are to take advantage of the artificially deflated currency and the various job opportunities specifically open to the expatriate community.  Out of the BRIC nations (Brazil, Russia, India, and China), China was reported to have the highest percentage (75%) of expats earning more than in their home country, while 70% of expats in China reported being able to spot more career opportunities. Overall, the 2010 HSBC Bank International The Expat Explorer Survey 2010 showed that expats in China enjoyed their new homes due to a better balance between work and play, a more stable economic situation, more family time, and more meaningful experiences shared with others, including the family, and finally…higher income.

Discounting rent, which will (almost) always rank first in expenses, what exactly are expats spending their cash on?

Top four areas of spending

This list was compiled using data from a short and informal survey that was conducted by the author. The survey sample included approximately 20 individuals who are either studying or working in China. 

1) Western food and kitchen appliances
Chinese food is known for its eight traditional cooking styles (Hui, Yue, Min, Xiang, Su, Lu, Chuan, and Zhe) as well as the various local variations and specialties. But even the most hardened of laowai needs a peanut butter and jelly sandwich or a salad every now and then. Therefore, it makes sense that expatriates (approximately 90% according to the author's survey) are willing to spend a good amount of cash for the occasional Western meal.  

Western restaurants are a dime a dozen even in the second tier urban centres of China such as Nanjing and Hangzhou. However, importing those perfect elements for Spanish tapas, Mexican tacos, or French pastries can be more than a little pricey. One way to try to negate those prices is to try and make your own Western delights. One of the most important home kitchen appliances, according to people interviewed, is the espresso machine. Additionally, regardless of whether one is a home cook or a self-proclaimed restaurant critic, one edible item that most foreigners could agree that they would be willing to spend on is imported alcohol. Not that Qingdao isn't good in its own right, but once in a while a Heineken is just irresistible. 

2) Train Tickets
China is the 3rd largest country by land area and is home to 56 different ethnic minorities.  With all the cultural and geographical variety that China has to offer it would be a shame to linger in one city for too long. And with the constant renovating and innovative improvements with the Chinese railway system, who can resist a quick getaway or a lengthy search for the self?

According to this author's survey, approximately 70% of expats cannot resist. Although planes are convenient and quick, the train stations of China are multiplying and improving at a fast rate. The Nanjing South Station sports a variety of snack and shopping possibilities, not to mention a Carl's Jr. burger restaurant for the fast-food lovers and the homesick Americans. The recently introduced Gao Tie high-speed rail line is also a major incentive for Chinese and foreigners alike to explore the farther reaches of China. Overall, train travel is fast becoming the major means of travel for the globetrotting expatriates of China.

3) Electronics
With the upcoming release of the Iphone 4S on the international market, Chinese nationals and expats alike have been clamouring to get their hands on the latest technology in Apple smart phones. However, buying basic electronic needs from local vendors in China can cause more stress and be more of a task then waiting in line for a seemingly impossible to find Apple Genius, especially in Shanghai where it very difficult to book an online appointment.

What's more, although the quality of items is improving and local brands are becoming more reliable, a certain degree of suspicion continues to permeate Chinese nationals and foreign expats alike. Consequently, many expats (approximately 60% of those surveyed) justify spending more money on international computer and phone brands with bases in China. As society becomes more reliant on their high-speed smart phones and laptops, expatriates continue to be no exception to this trend. With Skype being the cheapest way to contact home, computers being the fastest way to type papers for school, and smart phones being the most necessary item for the China-based employee, a reliable and warrantee covered PDA (personal digital assistant) is worth a high sticker price no matter if you are on an executive or student budget.

4) Home Furnishings
What good is a home without a favourite couch or chair? Even on the most hardened of budgets it would be hard to believe that cardboard boxes and junkyard coffee tables would be enough for the long-term expatriate. IKEA is one of the most well known furnishings store chains in the world. So it only makes sense that this trendy furniture chain would have 8 different locations throughout China. According to Bloomberg.com, sales in China are so successful that they will be expanding their locations and cutting prices by 1.5 percent this year.

From Beijing to Shenzhen, people are shelling out money to furnish their homes with the most trendy and comfortable of furnishings available on this side of Sweden (approximately 45% according to this author's survey). But for some trendy and comfortable is just not enough. For those expatriates who are here for the long-term (and who can afford it), custom made hard wood furniture seems to be the way to go. 

Foreigners in China live in relative comfort, and it shows; travel, Western cuisine and mid to higher end products are what they most commonly splurge their earnings on. So while in relative terms China may not be the best destination for putting money aside, it certainly remains one where a healthy, comfortable lifestyle is within easy reach. 
 

Related links
Seal off the Leaks: How to Save Money in China
The Beginning of the End for Lavish Expat Lifestyles?
Foreign Wealth Disparity in China: Income, Perception & Cost of Living

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