• The global transition towards cashless payments is accelerating, with many countries seeing an uptick in digital transactions in recent years.
• In Japan, the rise of cashless payments has been paired with efforts to boost financial education among young people.
• Several initiatives aim to foster healthy spending habits and build lifelong asset management skills, particularly in an increasingly digital world.

More than 80% of transactions made in South Korea, China and Sweden are now cashless, creating societies where physical currency is used much less often.

Japan is undergoing similar transformation. Since 2019, the share of cashless payments made in the country has increased 1.5 times, reaching 42.8% in 2024. Transaction volume rose to JPY 141 trillion, meeting the Ministry of Economy, Trade and Industry’s target of 40% by 2025 a year ahead of schedule. The government’s long-term goal is 80%, which it will support by expanding payment infrastructure and improving accessibility.

This shift to fewer cash-based transactions is extending beyond adults. In March 2025, UK-based digital banking app Revolut launched a service in Japan for users aged 6 to 17, offering debit cards with parental monitoring features. A few months later, Sony Bank introduced Family Debit Cards for children aged 12 and older, which are linked directly to parents’ accounts.

Parental attitudes are evolving as well. Nearly 60% of parents now support giving allowances in digital form. For example, in a recent survey of more than 1,000 students in Japan, about 75% said they had used apps to receive money transfers for family members. These transfers were made for a variety of reasons including allowance payments from parents. As smartphones become ubiquitous, digital money management is becoming part of everyday life for younger generations.
 

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At the same time, concerns are growing. Financial crime victims are becoming younger, as children and adolescents, whose sense of money and decision-making ability are still developing, face risks including scams and online fraud.

There is also a greater potential risk of overspending when people deal mostly with digital transactions. And with fewer opportunities to handle physical cash as they grow up, young people may lose the opportunity to understand the value of money if they are relying only on digital balances.

To address these risks, both public and private sectors are advancing financial education initiatives across Japan.

Supporting financial education

Since April 2022, Japan’s Ministry of Education, Culture, Sports, Science and Technology has embedded financial education into the national curriculum, from elementary through high school. The younger students on these programmes learn about everyday financial issues such as “the role of money” and “needs versus wants”. Older students go further by exploring cashless payments, financial products and long-term financial planning.

Supporting this effort, the Japan Financial Literacy and Education Corporation (J-FLEC), became fully operational in August 2024. It has set a mission to “strategically promote financial and economic education through public-private collaboration”. With this in mind, it provides schools with teaching materials, certified instructors and teacher training for financial education.

Meanwhile, the Ministry of Economy, Trade and Industry has released a children’s financial education guide. It's called Do You Know About Cashless Payments? and is designed to help children understand how digital payments work, as well as teaching them more about the risks of digital transactions and how to use them safely.

Japan's corporate financial education efforts

The private sector is also playing an important role in teaching young people about personal finance. Kids Money Station offers nationwide programmes for children from preschool to university age, with interactive, family-based classes designed to build financial literacy.

Mobile phone company NTT Docomo provides content through its family-oriented brand comotto that allows children to experience the cycle of “learning, earning, saving and spending”. In collaboration with financial firm Nomura Holdings, Docomo also organizes events during which children receive “salaries” in the form of digital points to purchase snacks. The event showcases interactive ways to practice financial decision-making.

Seven Bank has also partnered with educational company ARROWS to develop classroom materials and videos about money for elementary schools. Using school trips as a relatable theme, these financial education resources teach children about planning their spending and understanding cashless transactions.

Why financial education matters in a cashless era

Giving children a strong foundation in financial education is about preventing risks such as succumbing to scams, overspending or taking out too much credit. But it’s also about fostering healthy spending habits and building lifelong asset management skills.

This is particularly important in an increasingly digital world where shopping and banking can be completed with a smartphone app. As online transactions grow, it’s even more essential for children to develop a sound understanding of the value of money – whether it’s in their purse or on their phone.

Strengthening financial literacy among young people is vital not only for each person’s own security, but also to help build resilience throughout the economy and society as a whole.