Cultural Discussion - Money

Cultural Discussion - Money

How important is money to you?

Why is money important to most people?

Do you think that money affects how happy you are? Why? Why not?

Saving:

How important is saving money to you?

Why do you save money?

List all the things you think it’s important to save money for in your future (either long-term or short-term).

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Here are some statistics about saving in the United States and Japan:

Savings Habits:

• amount of income saved: U.S. - 1%, Japan - 6%
• amount saved in 1990's: U.S. - 1.7%, Japan - 15%
• *average savings at retirement: U.S. - $55,00, Japan - $113,000
• amount of money in cash savings: U.S. - 13%, Japan - 55%
• amount of stock invested - U.S. - 34%, Japan - 9%

*These figures do not include non-cash assets such as the value of property.

1. Do any of these statistics surprise you? If so, which ones and why?
2. Why do you think the amount of savings is so different between Americans and Japanese?
3. Why do you think Japanese people invest far less of their savings in stocks compared to Americans?
4. What is “tansu yokin”?

Spending Habits:

Do you worry about how much money you spend? Why? Why not?

Does spending money make you feel happy or sad? If so, what kind of spending makes you feel good and what sort of spending makes you feel bad?

In English, there are some sayings which describe living with barely enough money to get by. Some of these sayings are:

• living hand to mouth
• living paycheck-to-paycheck
• barely eking out a living

People who must live this way have little or no extra money with which to buy unnecessary items. A lot of people in developed countries would find this type of life unbearable.

How would you feel if you were to find yourself in such a situation?

Look at the list of items below and number them from 1 to 10 in order of the highest to the lowest expense in your life. Number “1” should be the item you spend the most on. Number “10” should be the item you spend the least on.

• Rent
• Groceries
• Eating Out
• Holidays (travel, hotel, etc.)
• Luxury Goods
• Necessary Sundry Goods
• Entertainment
• Utility Bills (gas, electric, etc.)
• Clothing
• Gifts
• Other (car, health club, etc.)

Here is information on the average debts of people in Japan and America.

Debt Information:

• average credit card debt: U.S. - $8,940, Japan - $400
• % of homeowners who take out a mortgage to buy a home: U.S. - nearly 100%, Japan - 33%
• total credit card debt nationwide: U.S. - $800,000,000, Japan - $70,000,000

Here are some common causes of debt in America:

1. A consumptive lifestyle (buying too much, often more than one needs)
2. Ease of credit encouraging one to live beyond one’s means
3. Adult “toys” (recreational vehicles, boats, computers, etc.)
4. Eating out
5. Unexpected expenses (medical expenses, car failure/breakdown, etc.)
6. Reduction of income
7. Lack of a household budget to help control spending

Do you think any of these are common causes of debt in Japan?

Do you ever shop as a “hobby”? Do you think this puts you at risk of going into debt? Why? Why not?

How is bankruptcy viewed in Japan?

Would you be surprised to learn that 1/3 of all suicides in Japan are because of financial problems?

Describing Our Habits:

There are many words in English to describe how people handle their money. Here are two of them: frugal cheap

These words have very similar meanings. Both of them talk about people who don't spend more money than necessary. The difference is that "frugal" sounds good and "cheap" sounds bad.

For example:

He is frugal. = He spends money carefully.
He is cheap. = He doesn't spend money because he is selfish.

• Why do you think there are both positive and negative words for how people spend money?
• How do you view someone who spends money freely?
  
• How do you view someone who doesn't want to spend money because he wants to keep his money for himself?
• What about you? Are you frugal or cheap?
  
• What major decisions in your life have been affected by concerns about money?

Consider each of the following choices we make in our lives and how money affects decision you would make about each one:

• Do you choose your job based on the salary or the type of work?
  
• Do you choose a marriage partner based on his or her job?
• Do you choose the city you live in based on how expensive it is?
• Do you choose the kind of clothing you buy based on its price or style?
  
• Do you choose a hobby based on how expensive it is?
  
• Do you choose your means of transport (train, bus, subway, taxi, etc.) based on how expensive it is?

This material is (c) The Home Sensei