#Japan #Tokyo #consumer behavior #SMBC #Money Mindset

Understanding the Financial Landscape of Japanese Millennials

On November 27-28, 2025, SMBC Consumer Finance conducted a survey targeting individuals aged 20 to 29, gathering insights into their financial consciousness for the upcoming year, 2026. Conducted by Net Asia Inc. with 1,000 valid responses collected through Internet research, the findings reveal startling trends regarding savings, spending, and future financial expectations among Japanese young adults.

Monthly Allowance and Expenditure Trends

Allocation of Monthly Allowance

The average monthly allowance for 20-somethings has been reported at 32,159 yen, a decrease of 2,446 yen compared to the previous year. Breaking it down by marital status shows that married men have seen an increase in their average allowance from 27,077 yen to 38,797 yen, while unmarried men have decreased theirs from 33,905 yen to 30,141 yen.

Monthly Savings and Concerns

When it comes to savings, the average amount among 20-somethings stands at 740,000 yen, which shows a modest increase of 50,000 yen since the last survey. However, concerningly, 69.4% of respondents expressed a sense of insecurity regarding their savings, with students feeling this unease more acutely at 76.6%.

Perspectives on Retirement and Future Financial Security

Concerns about Future Retirement

A discussion about retirement planning revealed that a staggering 89% do not believe that pension funds alone will suffice for a secure future, echoing similar sentiments of anxiety towards retirement—68.0% of men and 74.6% of women expressed concerns about their post-retirement lives.

Savings Goals for Retirement

Furthermore, respondents indicated that an ideal savings goal to feel safe by the time they retire would average 22.14 million yen, an increase of 245,000 yen since the last survey. This highlights a growing awareness among young adults of the need for substantial financial preparation as they envision their futures.

Spending Habits Reflecting Complicated Financial Dynamics

Attitudes Toward Spending and Saving

Interestingly, 60.8% stated they experience joy in saving money rather than spending it, revealing a shift in mindset among the younger generation amid rising living costs. The survey also indicated that the majority would prioritize essentials like food and savings when managing their budgets, with leisure activities coming in third.

Gaming Expenses and Consumer Behavior

The survey indicated that a portion of this demographic participates actively in gaming, with 19.2% spending an average of 5,080 yen monthly on in-game purchases and approx. 30.8% feeling a sense of pride in acquiring rare items within games. In total, 35.3% of respondents engage in “oshi-katsu,” or supporting their favorite celebrities or characters financially, revealing a unique intersection of entertainment and consumer spending.

Expectations Surrounding Marriage and Family

Financial Requirements for Major Life Events

The threshold for financial stability before marriage has risen, with over half of respondents indicating they would consider marriage only if they earned 8 million yen annually. Previously, the threshold was 7 million yen, marking a 1 million yen increase due to evolving economic conditions.

In terms of family planning, 50.2% express a desire to start raising a child only when their household income reaches 9 million yen.

Conclusion

The SMBC Consumer Finance survey offers an intriguing glimpse into the evolving financial landscape for millennials in Japan. Their cautious approach towards spending and emphasis on savings reflect a generational shift influenced by economic instability and a strong awareness of future financial needs. As 20-somethings navigate the complexities of modern life, understanding their financial psyche is crucial not only for businesses but also for societal implications in the years to come.