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Some questions on "characteristics of behavior and attitude" include viewpoints ofbehavioral economics such as "loss aversion" and "herd behavior." Attributes of survey samples include gender, age, place of residence, occupation, annualincome, as well as their experience of participating in financial education. In sum, this survey has enabled analysis of data from various perspectives, namely, age,region, the experience of participating in financial education, and the degree of lossaversion.Figure 4 Analysis of 25,000 sample dataSample sizeAnalysis from various perspectivesAnalysis by category/level of financialknowledge, effects of financial education,behavioral economic analysis, analysis byprefecture and other aspects25,000 sample data in proportion toJapan's demographic structureII. Summary of the ResultsCharacteristics concerning financial literacy The percentage of correct answers given to true/false questions was55.6%. By category, the percentage was the highest for "basics offinancial transactions" at 72.9% and lowest for "basics of finance andeconomy" at 48.8%.Financialknowledge andfinancialdecision-making The percentage of correct answers given to true/false questions was theskillslowest for the 18–29 age group and became higher as the age rose(slightly declining for those in their 70s).Figure 5 Correct answers given by category of the Figure 6 Correct answers given to true/falseFinancial Literacy Mapquestions by age group(25 questions including Q4*)CategoryCorrectanswers (%)Family budget management51.0Life planning50.4Basics of financial transactions72.9Basics of finance and Wealth building52.553.354.3Use of outside 70s42.9403020100Age 18–29 30s40s* "Q number" indicates the question number.For the contents of the questions, see "VI. Questionnaire (Simple Tabulation of Data)."560.750s

As much as 70% of the respondents answered that, before they boughtCharacteristicssomething, they carefully considered whether they could afford it.of behavior Only about 20–30% of the respondents answered that they had purchasedand attituderisk assets such as stocks or investment trusts.Figure 7 Percentage of those who, beforebuying something, carefullyconsidered whether they couldafford it (Q1-1)Agree133.8Analysis bylevel offinancialknowledgeFigure 8 Experience of purchasing risk sdeposits, etc.Disagree2336.722.0455.3(%) I have purchased themI have never purchased2.3 them31.625.817.368.474.282.7 Groups for which the percentage of correct answers given to true/falsequestions was relatively high showed the following characteristics: (1)acquiring financial and economic information frequently; (2) securelymanaging family budget; (3) choosing financial products afterunderstanding the product details; and (4) having less tendency for lossaversion and herd behavior.Figure 9 Analysis by level of financial knowledge(%)AllsamplesThose who acquired financial and economic information at least once a week (Q48)Those who paid their bills on time (Q1-2)Those who purchased investment trusts after understanding the product details (Q34)Those with strong loss aversion (Q6)Those with a strong herd behavioral bias (Q1-3)* Those ranking in the top 20% in terms of the percentage of correct 94.281.764.99.2Comparison with overseas surveys Compared with the United States, the percentage of correct answers given to commontrue/false questions was 7% lower in Japan. Compared with Germany and the United Kingdom, the percentage of correct answersgiven to common true/false questions was 7–9% lower in Japan. Also, the percentage ofthose with desirable behavior such as, before buying something, carefully consideringwhether they could afford it, was 7–17% lower in Japan.Note: When comparing with overseas, some leeway should be allowed since there are differences infinancial products and services, tax systems, educational systems, etc.Figure 10 Comparison with the United States(correct answers; Q19 and others)Figure 11 Comparison with Germany and theUnited Kingdom (Q18 and others)(%)Japan (A) U.S. (B) Gap K.586765658272708277455743JapanKnowledge titude6

Gap between needs for financial education and the actual situation and effects offinancial education While many respondents indicated that financial education should be offered, only alimited number of them had actually participated in such education. The percentage of correct answers given by students who had participated in financialeducation (56.4%) was higher than that of correct answers given by students who had notparticipated in such education (38.2%), and was also higher than the average for all agegroups (55.6%).Figure 12 Gap between needs for financial education and the actual situation (Q39 and 41)Those whoThose whoanswered thatfinancial education had financialshould be offered educationDon't know24.7FinancialeducationNot neededNumber ofrespondents（％）should s who had actually participated in financialeducation accounted for only 8.3% of those who answeredthat financial education should be offered.Future challenges In order to respond to needs for financial education, it is necessary to promote financialeducation more extensively, bearing in mind the priority issues for each age group.Those who exhibited desirable financial behavior (%),average of all samples: 57.1%Figure 13 Correct answers and behavior of each segment (Q24 and others)Those who participated infinancial education65.060.0For students and young adults, both thepercentage of correct answers and theproportion of those who exhibited desirablefinancial behavior* were lower.Adults(age 30–59)55.0Youngadults(age 18–29)50.0Average forall samples* Proportion of those who made comparisonswith other financial institutions or productswhen investing funds, taking out a loan, orpurchasing a life insurance policy.Senior citizens(age 60–79)On the other hand, for respondents whoparticipated in financial education, both thepercentage of correct answers and theproportion of those who exhibited desirablefinancial behavior were higher.Students(age t answers given to true/false questions (%),average of all samples: 55.6%Figure 14 Preparation for retirement by those in their 50s(Q8, 9, 10, and 27)Aware of the required amountFunds forHad a financial planretirementHad set aside fundsPension Aware of the receivable king at how respondents in their50s were preparing for theirretirement, about 50% of them werenot aware of the amount that wouldbe required as living expenses forretirement, and about 60% did nothave a financial plan for suchexpenses. Also, about 60% of themwere not aware of how much publicpension they would receive.

III. Survey ResultsA. Current State of Financial Literacy1. Analysis by Financial Literacy Map categoryFamily budget managementAround 70–90% of the respondents managed their monthly income and expenditureappropriately and kept payment due dates. Also, before buying something, they carefullyconsidered whether they could afford to buy it.More than half of the respondents had set aside emergency or rainy day funds in caseof sickness, job loss, etc.― However, the level of understanding was not high regarding credit cardtransactions.Figure 15 Awareness of monthly household incomeand expenditure (Q3)Figure 16 Setting aside of emergencyor rainy day funds (Q11)(%)All samplesCompany employeesFull-time Don'tknow15.4HavesetasideHavenot setaside54.929.7Figure 17 Questions on characteristics of behavior (Q1)Agree1Before I buy something I carefullyconsider whether I can afford itI pay my bills on timeI keep a close personal watch on myfinancial affairsI have too much debt right 71.522.534.930.48.83.34.47.014.813.360.6Note: Shaded cells indicate desirable financial behavior.Figure 18 Correct answers given to true/false questions on family budget managementQ4Q5ContentAppropriate income and expenditure managementAppropriate income and expenditure managementand credit card useCorrect answers (%)55.146.9Slightly less than half of the respondents understood that a creditcard fee (interest) is charged for installment payments.8

Life planningThe proportion of respondents who thought that they should set long-term financialgoals and avoid living for today was larger than those who thought otherwise.Slightly less than 50% of the respondents knew the so-called three major expenses inlife, namely, living expenses for retirement, children's educational expenses, and costsof buying a house.Regarding these major expenses, 50–60% of the respondents were aware of therequired amount, 40–50% had a financial plan, and 20–30% had set aside funds.Figure 19 Questions on characteristics of behavior and attitude (Q1)Agree12Disagree345(%)I set long-term financial goals and striveto achieve them17.629.936.011.05.6I tend to live for today and let tomorrowtake care of itself3.913.228.325.628.9Note: Shaded cells indicate desirable financial behavior.Figure 20 Correct answers given to true/false questions on life planningQ12Q13ContentUnderstanding of the compound interest and theaccumulation period related to cumulativedepositsUnderstanding of three major expenses in lifeFigure 21 Recognition of three majorexpenses in life* (Q13)* Living expenses for retirement,children's educational expenses, andcosts of buying a house.Correct answers (%)53.247.6Figure 22 Proportions of respondentsregarding three major expensesin terms of the required amount,a financial plan, and settingaside of funds (Q8, 9, and 10)Those who wereaware of therequired amountThose who had afinancial planThose who hadset aside funds9(%)LivingChildren's Costs ofexpenseseducational buying 226.032.815.5

Financial knowledge, understanding of financial/economic circumstances, andappropriate selection/use of financial productsRespondents with correct answers on the basics of financial transactions were about70% of the total, but those on the basics of finance and economy, insurance, loans andcredit, and wealth building were about 50%.― About 50–60% of the respondents made comparisons with other financialinstitutions or products when taking out a loan, purchasing a life insurance policy,or investing funds.― About 40% of the respondents knew the amounts they were qualified to receive, thecategory of insured person they fell into, and the required number of years ofpaying contributions in order to qualify for pension benefits with regard to theirpensions.― About 20–30% of the respondents had the experience of purchasing stocks,investment trusts, foreign currency deposits, etc., out of which about 20–30% hadpurchased the products without understanding the product details.Figure 23 Correct answers on financialknowledgeNumber ofquestionsFinancial knowledgeFigure 24 Comparison with otherproducts (Q24, 29, and orrectanswers (%)1855.1 LoansBasics of financial transactions*372.9 Life insuranceBasics of finance and economy648.8 InvestmentInsurance352.5Loans/credit353.3Wealth building354.3* Basic attitude concerning contracts, appropriate behavior to avoid being involved infinancial trouble, and the method to avoid trouble related to Internet transactions.Figure 25 Understanding of one's own pension (Q27)I don't knowI knowReceivable amount36.6%Category of insured person63.4%41.9%58.1%Required number of years of payment44.6%55.4%Age of starting to receive the pension45.2%54.8%Category of public pension63.5%0%20%Figure 26 Purchasing of risk assets its, etc.I have purchased them31.625.817.3I have never purchasedthem68.474.282.740%36.5%60%80%100%Figure 27 Understanding of the productdetails upon purchase (Q34)I have purchased themI did not understand the productdetails so wellI did not understand the productdetails at its, etc.100.0100.0100.017.424.518.76.97.76.9

Appropriate use of outside expertiseAbout 70% of the respondents knew a consultant office or a system to be used whenfinancial trouble occurred.― One-third of those who had experienced financial trouble did not know such aconsultant office or a system even at the time of the survey.Nearly 40% of the respondents acquired financial and economic information less oftenthan once a month.― The major information sources used when choosing a financial product were in thefollowing order: (1) websites; (2) consultation at financial institutions; (3)pamphlets provided at financial institutions; (4) television, newspapers, magazines,etc.; and (5) conversations with family members/friends.― The percentage of correct answers given to true/false questions for those who neveracquired financial and economic information was about 60% of the averagepercentage of correct answers for all respondents.Figure 28 Recognition of a consultant office,etc. to be used when financialtrouble occurred (Q38)Figure 29 Frequency of acquiring financialand economic information (Q48)(%)Incorrect26.3Correct73.7(%)Correct IncorrectAll respondents73.726.3Those who had experienced financial trouble66.633.4Figure 30 Information sources used whenchoosing a financial product (Q35)*(%)2016.2(-)6.0(2.6)Conversations with familymembers/friendsThrough TV, newspapers, etc.From pamphlets provided atfinancial institutionsConsultation at financialinstitutions4.7(8.3)Consultation with financialprofessionals, etc.At a lecture meeting or aseminarConversations with familymembers/friendsThrough TV, newspapers, etc.From pamphlets provided atfinancial institutionsConsultation at financialinstitutionsFrom websitesFrom websites19.5About once a month8.3Less often than the above18.6Never18.5Nearly 40% of the respondents acquiredfinancial and economic information lessoften than once a month.Figure 31 Correct answers by category forthose who never acquired financialand economic information (Q48)2. Life planning16.1 14.5(25.8) (35.5)100About once a week8. Outside expertiseConsultation with financialprofessionals, etc.23.722.4(17.1)(42.6)34.91. Family budgetmanagement100.0At a lecture meeting or a seminar30Almost every day7. Wealth building0.06. Loans3. Financialtransactions4. Financial basics5. InsuranceThose who did not acquire information (correct answers: 33.9%)All respondents (correct answers: 55.6%)* Figures in parentheses represent results of the 2011Financial Literacy Survey conducted mainly throughface-to-face interviews and postal mail. The 2016survey was an online survey.11A

2. Analysis of financial knowledge by attributeThe characteristics of the percentage of correct answers by attribute were as follows.(1) The percentage was the lowest for the 18–29 age group. The percentage tended tobecome higher as the age rose (slightly declining for those in their 70s).(2) The percentage was relatively low for students and part-timers.(3) The percentage tended to be higher for those who had higher annual income and alarger amount of financial assets.(4) The percentage tended to be higher for those who acquired financial and economicinformation more frequently.(5) The percentage was higher for those who had more experience in financialtransactions.Figure 32 Correct answers given to true/false questions (25 questions including Q4)By age groupBy employment or work Age 18–2940s30s50sBy annual )By amount of financial lionyen)10(millionyen)0By frequency of acquiring financialand economic informationFigure 33 Effects of experience in financialtransactions (Q24, 32, and 45)(%)70605040302010060.464.865.662.255.8Correct answersCorrectanswers for for those whohad experienceallin stmentMortgageAlmost every About once a About once a Less often thandayonce a monthweekmonthLife insuranceNever1254.359.752.573.669.657.4(%)Effects ofexperience infinancialtransactions(B-A)19.39.94.9The percentage of correct answers was higher for thosewho had more experience in financial transactions.

3. Analysis by level of financial knowledgeWhen the answers to the true/false questions (25 questions) were converted intoscores by giving 4 points to one correct answer, the scores were widely distributed from0 to 100 points.The proportion of those who had high scores was large among males in their 40s to70s. The proportion of those who had participated in financial education was alsorelatively high among these age groups.The characteristics of behavior and attitude found in those who had high scoresincluded: (1) acquiring financial and economic information frequently; (2) securelymanaging family budget; (3) purchasing a financial product after comparing it withother products, searching for relevant information on websites, consulting with financialinstitutions, etc., and understanding the product details; (4) having less tendency for lossaversion and herd behavior; (5) having a financial plan; and (6) setting aside emergencyor rainy day funds. As a result, they (1) were less likely to become involved in financialtrouble, (2) did not use consumer loans frequently, (3) felt a less sense of burden fromloans

1 October 2016 . Central Council for Financial Services Information (Secretariat: Public Relations Department, Bank of Japan) Financial Literacy Survey: 2016 Results * Introduction The Financial Literacy Survey 2016 is Japan's first large-scale questionnaire survey conducted with the aim of understanding the current state of financial literacy, i.e., financial knowledge and financial decision .