Bloomberg news agency reported on October 7, 2022 that in the world’s third largest economy, Japan. Public skepticism about financial investment has become so ingrained that investment bank Nomura Holdings Inc. is stepping into teaching economic fundamentals in high school.
About 8 in 10 Japanese have never invested in securities according to the country’s brokerage lobby group. Securities and investment accounted for only 16% of the 2 billion yen in household financial assets compared to 56% in the US
The asset price bubble has wiped out trillions of dollars in wealth in Japan. When the bubble burst in the early 1990s, it gave rise to a younger generation who believed that stocks would only fall. For decades, most people held most of their wealth in cash. That led many to miss out on the global stock boom in the years following the 2008 financial crisis.
Now the target is Fumio Kishida, Prime Minister of Japan. The announcement to double the income of Japanese people from their assets was set to encourage more people to turn their savings into investments. Financial education can become an important part of government plans. Because of the opinion that proper knowledge is necessary for good asset management.
in April of this year Japan requires high school to teach about finances. including investing in stocks and bonds as part of the Home Economics Curriculum
The financial industry has introduced a variety of ideas, with Daiwa Securities Group Inc. Chief Executive Officer Seiji Nakata offering finance as part of the qualifying exam. The focus on financial education also benefits brokers. Younger generations are turning to online apps that charge less for stock trading.
In a class held earlier this summer and taught by Yuki Sato, Nomura employee, a first-grade high school student in Sakai, near Osaka, in southern Japan, filled out a worksheet to figure out what’s required. How Much Money to Plan for the Future, Sato explains the importance of managing income and spending for a 16-year-old, making financial arrangements for marriage, childbirth, education, and other potentially costly jobs. future high
There are signs that the younger generation in Japan is more eager to invest than their parents. At the brokerage unit of SBI Securities Inc., the number of accounts opened by 18-year-olds increased by 1,600 in April this year. A sharp increase from an average of 130 or more in the previous month. The pace of growth has remained at around 1,000 accounts per month since then.
However, there has been no close cooperation between the major players in financial education. Nomura and other private companies They are trying to make individual efforts, such as sending teachers to school. But the Bank of Japan, the Financial Services Agency, the Ministry of Economy trade and industry And the government agencies responsible for consumer protection all work separately.
Haruhiro Nakano Fund Manager The chief executive officer of Saison Asset Management Co. said about seven in 10 Japanese people think investing in securities is unnecessary. According to a recent survey by the Japan Securities Dealers Association, an increasing number of retail investors have complained to the government that financial firms tricked into buying structured bonds that offer higher yields than normal debt but are significantly riskier. Significance
Liberal Democratic Party legislator Satsuki Katayama said she was considering submitting legislation to parliament next year to promote financial education.
while other countries already in front The United States formed the Financial Literacy and Education Commission in 2003, with about 20 government agencies and departments participating.
Reference: https://www.bloomberg.com/news/articles/2022-10-06/nomura-is-teaching-japan-high-school-kids-how-to-invest