Why Japanese People Need Financial Education, Not Just Investment Education

In recent years, the necessity of education themed around "investment" has been gaining attention in Japan as well.
However, I feel that the perspective that "financial education" is needed first, before acquiring investment skills, is missing.

Financial education is not just about asset management; it is about deepening one's fundamental understanding of money itself and fostering skills that are directly linked to overall life. Let's consider its necessity this time.

1. "Basic Knowledge of Money" Needed Before Investment Education

In Japan, there are few opportunities to learn about money systematically in school education, and many people enter society without basic knowledge regarding "money." (This is the same even for financial professionals.)
For example, it is said that knowing the following basic matters is important even before investment.

・Income and expenditure management: How to keep a household account book and manage income and expenses in a balanced way.
・Mechanisms of debt and interest: The basics of credit card interest and loan repayment.
・Taxes and social insurance: The mechanisms of income tax, consumption tax, pensions, etc.
・Understanding financial products: The basics of deposits, insurance, loans, and risk and return.

If you do not understand these, I think sustainable asset formation is difficult no matter how much you learn about investment techniques.

2. The Gap Between the Japanese "Savings-Oriented" Mindset and Financial Education

In Japan, while the awareness that "savings = safe" is deeply rooted due to the influence of the long-term low-interest-rate environment, understanding of inflation and the decline in asset value is insufficient.
This stems from the fact that many people have not received financial education, and thus lack a basic sense of balance regarding risk and return.

For example, the reason why many people feel "scared" or "don't want to lose money" even when investment is recommended is because only investment risk is excessively emphasized, while savings and inflation risks are downplayed.
To compensate for this, it is first necessary to understand "fluctuations in the value of money" and "means of asset preservation" through financial education.

3. Global Examples: Countries Where Financial Education is Advancing

In countries where financial education is advancing, the following types of learning have been introduced from childhood.
United States 🇺🇸
"Personal Finance" classes in high school are mandatory. Students learn about budget management and how to use credit.

United Kingdom 🇬🇧
Elementary schools teach the basics of "how to use money" and "value exchange."

Australia 🇦🇺
Educational programs are implemented where children open their own bank accounts and learn how to manage money.

In these countries, it seems there are mechanisms that prioritize financial literacy before investment education and foster basic knowledge about money.

4. Results of Financial Education: Improving Quality of Life, Not Just Investment

As financial education advances, the following effects are expected.
① Ability to avoid unnecessary debt
Reduction in the use of consumer finance and high-interest loans.
② Expansion of economic options
Possibility of choosing appropriate insurance, savings, and asset formation.
③ Lowering the psychological hurdle to investment
Habit of calmly understanding investment risk and having a long-term perspective.
④ Enrichment of home education
By parents having financial literacy, it becomes easier to pass on knowledge about money to the next generation.


5. Concrete Methods

For the introduction of financial education, the following concrete approaches are necessary.
① Enrichment of school education
Making classes that teach the basics of household management and taxes mandatory.
② Promotion of education for working adults
Holding seminars and workshops by financial planners.
③ Role of government and financial institutions
Provision of easy-to-understand financial information and awareness-raising activities.
④ Education at home
Teaching children the value and management methods of "money" at an early stage.


Conclusion
What is truly needed in Japan is not education that teaches short-term "investment techniques," but education that fosters "financial literacy" from a long-term perspective. I believe that financial education is an important skill that cultivates correct knowledge and values regarding money, expands life's options, and leads to true richness in life.

Through this blog, I sincerely hope that the importance of financial education will reach as many people as possible.