to prepare them for later years. in fiscal 2005, our council launched a campaign that aims to improve financial education at schools. it has developed the contents of such financial education by age group. the council also provides various teaching materials, including practical teaching cases for school children. indeed, to promote financial education activities more effectively, it is important to provide necessary information to people who are not interested in lifetime planning. it is also necessary to devise ways of encouraging them to take appropriate actions so as to maintain lifetime financial independence. these are difficult tasks, but it is vital to make people understand, through easy - to - understand and accessible means, that financial literacy reduces risks in their future lives. it is also essential to communicate to the public in a more effective manner by using behavioral economics insights. conclusion the bank of japan will continue to promote financial education through the activities of the council. we will maintain close cooperation with the financial services agency and relevant organizations. through our efforts, we hope that japanese people can continue to live stable, affluent lives despite the aging population and declining birthrate. i would like to conclude my speech by expressing our commitment to stronger cooperation with those of you who have gathered here today from the oecd and various countries around the world. thank you for your kind attention. available only in japanese. bis central bankers ’ speeches

##rate the need for improved financial literacy is gradually taking hold in japan. in the council ’ s survey, we ask about the “ purpose of holding financial assets. ” the reply chosen most often had long been “ preparation for illness and unexpected emergency. ” but in 2013, this changed for the first time in its 60 - year history to “ funds for life during my retirement period. ” this is symbolic for japan, which has a well - developed public pension system. bis central bankers ’ speeches the financial behavior of japanese people has changed accordingly. households ’ financial assets1 have increased by around 20 percent over the last decade ; that is, the period before and after the global financial crisis. notably, the amount held by people aged 60 years and older has reached 25 million yen per household. this is almost the same level as the “ target amount of funds you regard as necessary ” in the survey. financial assets are being accumulated to ensure a stable living standard over an individual ’ s retirement period. however, there are worrisome signs that financial literacy associated with lifetime planning has been undermined. as i mentioned earlier, households ’ financial assets have been growing. however, at the same time, the number of households that do not have such assets has been increasing recently. this trend has been observed in a wide range of income groups, including the highincome group. the backgrounds to this are varied, and problems related to financial literacy represent one of the factors. one example is a weaker awareness of the importance of lifetime planning. there are various concerns regarding children as well. in this affluent society that is undergoing demographic changes and rapid progress in technology, children could lose their sense of the value of money. for example, we have the so - called “ six pocket problem. ” this refers to a phenomenon in which a child is indulged with money given by the parents and grandparents of both the father and mother. another is the “ invisible money problem ” ; that is, a situation in which a child does not feel that they actually paid a price for something, given the increasing use of electronic money. in both cases, children have fewer opportunities to realize, through the first - hand experience of using physical money, that there are limits to the money we can spend. we must keep up with these developments, as lifestyles and values have become diverse and everyday life is more dependent on and convenient with technology. however, we still need to understand that there are limits to the goods we can own