Concerns Over Rising Costs Perturb Families Raising Children Amid Educational Financial Strain

Understanding Parental Concerns on Educational Finances

In a recent survey conducted by GOEN Inc. under the commission of the Japan Children's Resilience Development Association, over 60% of the families with children expressed notable concerns about rising costs related to education, especially in light of current economic conditions that continue to fluctuate. This survey, which reached out to 112 parents, reveals critical insights into the financial realities and anxieties surrounding education.

Key Findings of the Survey

1. High Expectations for Educational Expenses

The survey reported that more than 60% of parents anticipate needing to prepare over 10 million yen (approximately $90,000) for educational expenses per child. Notably, 26.8% of the respondents indicated they believe the expenses per child would fall between 10 million and 15 million yen. However, there is also a significant portion, 15.2%, who remain uncertain, highlighting the hesitations many families feel about setting concrete financial goals for education.

2. Unsustainable Preparation Levels

Concerningly, approximately 40% of the surveyed parents indicated a feeling of anxiety regarding their current preparations for educational expenses. While the majority of parents (28.6%) felt that their savings are on track but not yet sufficient, together with the group who believe their current savings will suffice (26.8%), they represent a majority hoping for improvement. However, about 42% of parents acknowledged a sense of fear and crisis about not being adequately prepared, and only 2.7% felt entirely confident in their readiness.

3. The Impact of Economic Conditions on Educational Concerns

A significant takeaway from the survey was that over 60% of respondents are particularly concerned about the impact of excessive inflation on educational costs. Following this, 57.1% worry about potential income loss, and 50% express concerns about unforeseen expenses. The apprehension around underfunded retirement savings, which reached 48.2%, shows the dilemma parents face in balancing their futures while ensuring their child’s educational success.

The Link Between Parental Financial Anxiety and Interest in Financial Literacy

As tax reforms come into play, including major expansions to Junior NISA, and with a current peak in stock market performance, the necessity for children to acquire financial literacy becomes more pressing. Many parents report feeling an urgency to equip their children with financial knowledge early on, driven by a desire to prevent them from experiencing the same struggles with money that they face today. This urgency correlates strongly with the rising interest in programs like the Kids Money School, which aims at providing children with essential money management skills.

Parents who have enrolled their children in the Kids Money School shared sentiments such as:

"Given how unstable the economy is now, I want my child to have 'real-world money knowledge' that schools don’t teach. It’s a lifelong asset."

"As I scramble to prepare for educational costs, I deeply understand the importance of money literacy, something I wish I had learned as a kid."

Future Directions: Equal Access to Financial Education

With Japanese government goals to increase financial education participation from the current 7% to 20% by 2028, the demand for effective financial education is predicted to continue growing. To address this need, Kids Money School is focused on creating engaging content that allows children to learn about money in an enjoyable manner. Additionally, the initiative plans to expand event frequencies across various regions and enhance online platforms. This will ensure that even children from less accessible areas can engage in valuable financial education and that virtually no region is deprived of this critical learning opportunity.

For the full schedule of events nationwide, parents can visit:
Kids Money School Schedule

For media inquiries regarding this topic, we welcome journalists to reach out for further information about the program.