29th November 2018


Japanese Financial Assets are Something to Behold - Here’s Their Secret

Even though that every 20 years Japan seems to face peculiar financial bubbles, common citizens still save in national currency.

Saving in Japan is more than a simple word, it is a philosophy, a fact that makes it a society that values money not just for spending in the present, but for the future as well, all because they learn about personal finances since very young. Avoiding the act of spending more than what they can actually afford, helps improve money management skills through habits that seem so strict for westerners.

Japan is a savings role model for the world, there are actual surpluses that reach up to ¥21 trillion, becoming the number one country in savings and credit, for both individuals and corporations. The Asian juggernaut culturally celebrates the accumulation of wealth, while it gives great priority to investment and wise-spending.

According to a recent study that measured the amount of financial assets in every Japanese household, most families managed to have an average ¥11.51 million at their disposal. It is worth noticing that after-tax incomes the amount downscales to ¥5.19 million, a substantial jump from last year’s amount of ¥4.87 million.

Financial institutions like the Bank of Japan assured that this friendly environment for business and investors is being given thanks to bonus hikes, growth in wages, and the right use of credit lines by customers who want to purchase automobiles, electronics, and many other durable goods available in such open market as the Japanese.

Fast Facts

  • Deposits averaged ¥5.04 million in every household that was taken into consideration, a fall of ¥1.18 million from 2017.
  • Insurance policies went up to ¥3.82 million, representing an increase of ¥990,000.
  • Securities stayed at ¥2.21 million, resulting in a boost of ¥140,000.

Japan’s economy looks like it has expanded as more people joined the workforce, although there is a worrying sign of a fastly aging part of the population, another survey showed that a considerable 43 percent of the citizens do not feel the urgent need to become homeowners, while day-care and other related expenditures are a priority. Most of these numbers are in the midst of several fiscal measures promoted by Prime Minister Shinzo Abe.