#Japan #Tokyo #Financial Education #Kids Money School #Economic Changes

The Urgent Need for Financial Education in Japan's Changing Economy

In recent years, Japan has been experiencing significant economic changes, including the depreciation of the yen and a rise in living costs. These factors have led to an increased demand for financial education, particularly focused on young children. A survey commissioned by the Japan Children’s Empowerment Association and conducted by GOEN Inc. revealed that a striking 98% of parents with children aged 3 to 12 acknowledge the necessity of financial education.

Despite this recognition, the practical implementation of such teachings within households is lacking. Only 30% of surveyed parents reported engaging in activities like giving their children a weekly allowance or allowing them to handle shopping independently. Alarmingly, 35% admitted to not doing anything related to financial education at all. This gap highlights a significant challenge: while parents feel the importance of teaching their children about money, many do not know how to effectively do so.

Real-Life Insights from Parents

Parents who have participated in the Kids Money School program have shared various eye-opening insights. One parent noted, "My child didn’t understand the concept of change," while another mentioned that their child viewed credit cards merely as "magic cards." Feedback reveals a concerning reality where traditional family settings are not sufficient for imparting basic money management skills.

Economic Pressures Fueling Educational Interest

The survey was conducted during a turbulent financial period. With a swift decline in the yen’s value and rising interest rates fueled by international economic events, households have experienced heightened financial anxiety. This anxiety extends to concerns about their children's future, thereby amplifying the urgency for financial education. It is no surprise that requests for Kids Money School have surged by 150% compared to the previous year, demonstrating a clear trend in parental interest.

Diverse Programs to Enhance Financial Literacy

In response to this emerging need, Kids Money School offers experiential learning programs, designed in alignment with the financial literacy programs published by the Financial Literacy Promotion Council, tailored to various age groups and themes:

• - “Mini-shop Play” (Preschool to 4th Grade): Kids engage in product creation and sales, fostering an understanding of the value of money and gratitude towards their parents.
• - “Shopping Adventure!” (Preschool to 2nd Grade): This simulated shopping experience encourages kids to learn about the value of goods, basic payment methods, and the importance of helping out with purchases.
• - “The Amazing World of Cashless Payments” (1st to 6th Grade): Children are introduced to the concept of invisible money, such as electronic payments and credit cards, learning their value and proper usage.
• - “Children's Investment Challenge” (3rd to 6th Grade): This interactive program allows kids to experience the fundamentals of investing through games focusing on concentration, diversification, and liquidation.

While children engage in these programs, parents benefit from mini-seminars covering topics like managing allowances and setting up future funds for their children’s wellbeing. Feedback from participants has been overwhelmingly positive, with children expressing newfound appreciation for money as something to be valued, and parents gaining clarity on how to approach financial education with their kids.

Future Developments

The Japanese government is considering lowering the eligibility age for the NISA investment framework from 18 to include younger individuals. This shift signals the growing importance of financial literacy among children and the need to equip them with the skills and knowledge necessary for responsible money management in the future.

In light of these developments, Kids Money School is committed to expanding its content and reaching a wider audience. Efforts are underway to increase the number of in-person sessions nationwide and strengthen online offerings, ensuring that even children in underserved areas can access financial education. The goal is to provide equitable financial literacy opportunities, regardless of location, thus creating a more informed future generation.

For more details about the nationwide schedule of events, visit: Kids Money School Schedule

For media inquiries or to arrange interviews, please feel free to contact our office. We’re eager to share more about this valuable initiative.