6 Shanghai Tips for Spending Less Money

Perhaps unlike any of the other largest cities in the world, Shanghai can be either formidably expensive or shockingly cheap. Like other big cities, there is a chic downtown district where any designer brand can be found and tree-lined promenades can be traipsed along, but there are also underground markets where shopkeepers holler to catch a passing foreigner's attention and the same “designer brands” can be bargained for and purchased for no more than the average price for a purse, watch, wallet, or belt (although I do not support brand piracy). Depending on how much local Shanghai life you are willing to embrace, it is possible to save a ton of money in the city and ease any lingering culture shock effects by taking a glance at your bank account and smiling.

1. Take the Subway or Bus

As with any destination, becoming educated and living like a local, and not acting like a tourist, is a great way to save money. One way to save money is to choose your means of traveling carefully. Shanghai 's public transportation system is fantastic. It is new and ultra-modern and still very inexpensive.

Shanghai 's subway system, begun in 1995, has become one of the longest and most traversed in the world. It has eleven lines and hundreds of stations to take travelers to anywhere in the sprawling metropolis and it is extremely cheap. The base fare is three RMB and just one additional RMB for every ten km, with the maximum price for a ride at ten RMB, or approximately $1.50 USD. There is not much left in the world that you can buy for $1.50.

Interactive Shanghai Metro Map

Riding buses, although sometimes bit more of a hassle, can be a great people watching, queue-ignoring, fight ensuing way to travel. The fare is, usually, a flat rate two RMB, one RMB for children, and all buses are air conditioned. It can be hard for a new foreigner to recognize his stop and understand where the bus is going, so this is an option for the more prepared of the expatriates. Here are some great resources and articles to help you navigate the bus system:

Shanghai Bus Routes in English
Leah's bus article (bottom of page has loads of resources)
Using DDMap.com to Navigate Shanghai Buses and Metro

But even taxis are not too expensive. The base price is 12 RMB in the day and 16 RMB at night, with the first 3 km free and either 2.4 or 3.1 for each additional km in the day or night. A great thing about the integrate public transport of Shanghai is that all three of these services, subway, bus, and taxi, can be paid for with the Shanghai Public Transportation card, which gives discounts for frequent usage.

2. Eat Local Food

I don't mean to encourage exclusively eating midnight noodles and street corner barbeque, because I think doing that is as good for your wallet as it is bad for your health, but plenty of small restaurants make fantastic noodle and rice dishes. This is real Chinese food and it is not the same as the “Number 1 Wok Buffet” in the mall back home. It is not surprising to see La Mian, or pulled noodle places, selling nearly everything on the menu between eight and 15 RMB. Dumpling stands abound where different varieties can be purchased for one or two RMB each and make for good snacks and fast meals. Stick to places where you have seen locals eat before, which almost ensures that the food is clean and safe. Locals won't go back to places that are unsafe.

Also, get a water cooler and buy tickets for water delivery. You'll need to learn how to say your address in Chinese or have a local friend help you, but this is a good investment instead of buying five bottles of water a day. The coolers come with built-in water-boilers for your morning tea or coffee as well, to save money instead of a trip to Starbucks.

Many restaurants cater specifically to foreigners, and delivery services with high fees that reach all of these restaurants as well, with the specific assumption in mind that Westerners have more money so their prices will reflect that. Eat at places that fit a Chinese person's budget and your stomach and wallet will thank you. Remember, you don't need to be scared to retreat back into a bubble of homesickness and run into the nearest KFC, but making it a habit to eat locally is very good for your bank account. But often these small places have restaurants in Chinese, so:

3. Learn Some Mandarin!

Learn a bit of Mandarin, numbers, the characters for beef and noodles, and how to shop, so you aren't scared of going into local restaurants where the likelihood of speaking English is much lower and you will be able to order off the menu yourself. It isn't often a big deal if you can't read the menu anyway as long as you can ask the waiter for your won ton soup or pulled noodles or chicken and rice and she can offer you something. Learning Mandarin will look great on your resume if ever you want to change jobs, too, because this is China after all.

4. Don't Confuse “Inexpensive” with “Necessary”

A big mistake for many young foreigners is the proliferation of goods and services much cheaper than in their home countries. A massage may be just 60 or 100 RMB for an hour, extremely cheap compared to the cost of labor in America or Europe , but this encourages vast overconsumption of a service that people almost never purchase at home. Even though a massage is relatively cheap it does not mean that you need to get one everyday after work. Shopping, too, can be quite fun in Shanghai when prices seem so low in markets, but this shouldn't mean that you need to buy three new suits or ten new bags just because they seem cheaper than in your home country. These types of expenses add up quickly. When shopping, it is often useful to bargain with a price in mind, say $20 USD, and stick to it as the price you are willing to pay. And it is absolutely necessary to know the conversion from RMB to your home currency, or you may end up paying much more than you thought you were.

5. Know Where and When to go Out

Going out and partying in Shanghai's overwhelming nightlife is another big way to spend money, especially when many of these nights end at McDonalds. Many popular clubs will sell drinks for 25 RMB per drink, but another option that they don't advertise is that you can by drink tickets at the front for 100 RMB for ten drinks. If you split this cost with friends, you can all get drinks at less than half the normal price. Check magazines and online listings for clubs having parties, specials, and open-bar events especially on week-days and less popular nights. There are almost always cheap drinks to be had and new clubs come, and go, often in Shanghai and usually have good opening-week specials.

6. Shop Locally

Don't fall into the Foreign Supermarket trap. It can be popular for companies to open stores specifically to foreigners who might be scared of the quality, or the packaged meats, in a local supermarket. But often they sell the same goods at much higher prices. Check out the neighborhood store before deciding you absolutely need to go to foreign market to buy your favorite box of cereal that costs $12 USD here. Give the local supermarkets, and food, a chance and support local business at the same time.

One of the great things about saving money in Shanghai , especially if you are paid in a foreign currency, is seeing how far small amounts of money can go. Don't think you could live on less than $7 USD a day in a city like this? Well you don't be too surprised if you try it and it works. You'll never regret saving money but don't save it all; don't be afraid of having some fun.

Nate Stein is an American who used to aspire to be an author, but there was also a time when he wanted to be an astronaut. Now, he lives in Shanghai and all of his writing (and space travel) is done for fun; you can see his blog at http://natestein.wordpress.com and follow him @NateUpdates