Japanese households are rapidly changing in their management of household finance. Like other industrially developed countries, Japan is fast becoming a cashless society. The nature of financial products and services available to households is changing singificantly. This change in the society is
bound to affect financial management practices of Japanese households. To learn specifically about various aspects of financial practices of Japanese a survey was conducted in the fall of 1986 in three districts of Japan: Kinki (Hanshin, Nara, Wakayama), Tokai (Inazawa), and Hokuriku (Toyama).
A majority (80%) of households specifically identified several financial goals, however almost none had any specific plans to achieve those financial goals. For example, ’to accumulate funds for retirement planning’ was a goal mentioned by a majority of respondents, but about only two-thirds did not have even rough estimates regarding their retiremeht needs. It was also evident from data that many households had not made any adjustments in their spending and saving practices to achieve their financial goals. Several family events, for which accumulation of funds was identified as a goal, were refiective of Japanese culture. Those included children's wedding, gifts for relatives and friends for specific occasions. This is reflective of the importance of human relationships and networking. It was noted that households with well developed financial plans to meet their childrens, need were also the ones that had specific financial plans to meet the needs of other family members. Level of satisfaction with various aspects of household finances was sigificantly related to household's ability to develop specific plans to achieve family financial goals.
In most Japanese households, spending plans were developed by wives. However, financial decisions were either made by husband or jointly by husband and wife. Most of the communication regarding family finances occurred between husband and wife only. Occasionally, children or couple's parents were also involved in such interaction. None of the respondents indicated consulting with a professional money manager or specialist. The role of money management specialist may become important in the future, as it is seen presently in U.S. and Canada. Approximately 40% of the respondents indicated they may consider getting some advice from a specialist in the future. However, majority indicated that they will never seek advice from a money management specialist because household finances are a private matter, and they know their
own finances better than anyone else. Occasional disagreements between husband and wife on
household finances were indicated by majority of respondents. Most of these disagreements were resolved by one spouse agreeing with the other (mostly wife agreeing with husband) or arriving at a compromise in some cases.
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