Dollars and sense
Hundreds of Japanese children spent the past summer getting smarter about an unfamiliar topic: money. That did not happen through the usual cram schools, or college classes on dry financial theory. Instead, it was a more practical form of instruction, given under the initiative of financial institutions, non-profit organisations and stock exchanges.
Such education is a vital part of building the skills necessary in civil society, they say, at a time when Japan's once-invulnerable banks are subject to collapse, lifetime employment is only a memory, and individuals must make more decisions about their investments.
On the agenda for schoolchildren and teenagers were home economics and basic ideas about investment and the economy. Risona Bank organised a two-day Kid's Money Academy in Tokyo, Osaka and Saitama, near Tokyo, last month. Children in elementary 5th and 6th grades listened to a lecture by the bank's president, toured Risona's dealing room and its safe.
Merrill Lynch Japan Securities sponsored Kids' Market Camp, jointly with Waseda University and the non-profit group, the Association for the Promotion of Financial Literacy. The popular three-day event attracted 300 applicants, from every corner of the country, for the 30 places available. The Tokyo Stock Exchange organised eight sessions this summer - an increase from two last year - of the Our Life and Public Companies seminar for pupils and parents. They toured the exchange market and studied stock exchanges with a demonstration of virtual trading.
A non-profit organisation named Aprosis (Association for Promoting Securities Investment and Study) sends securities counsellors to secondary schools and colleges to talk about equity trading. Last year, they visited 55 secondary schools - a threefold increase in two years. Other active educators include the Japanese Institute of Certified Accountants, the Japan Securities Dealers' Association, the Japanese Bankers' Association and the national government.
Japan this year cut back on protection for people who lose their savings when financial institutions collapse. So Tokyo now promotes investment education for consumers, including young ones. The national Tax Agency is just one of the government bodies that have created websites for children, using money- and tax-related games as teaching tools. Even the solemn Bank of Japan has a similar site.
Education about money matters may in fact be necessary. But people should be aware that financial institutions are keen to attract customers. So learn, students, but don't be pressured into jumping at inappropriate investments.
