How Do Ordinary People Realize They Have Financial Problems?

Most families only discover their financial problems after the college entrance exam.

Can they afford college? Tuition is 6,000 RMB per semester (some include dorm fees), dormitory is 4,000 RMB, and living expenses are about 1,500 RMB per month (barely enough if eating at the cafeteria). That's ×2 per year, so roughly 120,000 RMB over four years—about 30,000 RMB per year.

Right after the exam, families tend to go on a spending spree—buying the student a computer, a phone, and so on. That alone can easily cost 10,000 RMB. Then come tuition and living expenses...

At this point, many families in tier-3 and above cities and towns are already struggling to make ends meet (with a monthly income of 1,000 RMB, well... you get the idea).

Original article