（#Money #Credit #Cash）Financial Literacy: Credit Cards: Understanding the Income and Expenses Essential to Daily Life

Talking About Money Is Now Seen as “Cultural Literacy”

• “Talking openly about money just feels kind of uncool.”

• “Talking about money is greedy and vulgar.”

• “It’s tacky to discuss your income in front of your children.”

In the past, comments like these were common.

There used to be an atmosphere where people avoided discussing money, as if it were something to be hidden.

However, things are completely different today.

Today’s high school students are learning thoroughly about
“wealth building” and “investing” in their school classes.

Knowledge about how to protect, grow, and spend money is
no longer something to be kept secret;
it has become an essential part of “general knowledge” for living.

Even if they’re currently focused on managing their allowance,
there will inevitably be situations in the future where they’ll need money.

And those expenses may frequently exceed the amount of their allowance.

The financial literacy gained by understanding money and income from childhood—as students—
will serve as a reliable basis for decision-making and bring benefits in the future.

While high school students are deepening their understanding of how money works through their classes,
it is actually we adults who are falling behind the times.
We need to update the way we manage our money.

Among these financial tools, “credit cards” are particularly integral to our daily lives.

Having a credit card isn’t simply about acquiring a “convenient tool that lets you shop even when you don’t have cash on hand.”

It is an “essential item” for surviving in the coming era,
and a way to become more mindful of how we spend our money.

First Encounter with Credit Cards After Starting My Career

I got my first credit card in the spring, right after I started working.

Until then, whenever I went shopping, I always paid by taking bills and coins out of my wallet.

I only had a vague sense of how much I was spending—based on the feeling of my wallet getting lighter.

Once I started working and began receiving a fixed monthly salary, it suddenly dawned on me.

“I wonder how much money I’m spending each month, and on what?”

Rent, utilities, daily groceries, and social expenses.

When paying with cash, unless you keep receipts and keep a household budget,
you completely lose track of where your money is going.

So, on the recommendation of a senior colleague, I applied for a credit card.

I remember the first time I used the card to make a purchase—since the number of bills in my wallet didn’t decrease, it felt a little strange, and
I felt a sense of nervous excitement, as if I’d suddenly become an adult.

However, almost as soon as I started using it, I realized that a credit card isn’t just a payment method—
it’s an “ally that makes managing money dramatically easier.”

Credit Cards Are Necessary in Everyday Life

Credit cards are indispensable for managing the income and expenses of daily life.

The reason is that the very structure of our daily lives has come to operate on the assumption that we have credit cards.

For example, paying monthly smartphone bills or subscribing to online video streaming services.

For these, simply registering your credit card ensures that payments are processed automatically every month.

Without a credit card,
you’d have to go out of your way to visit a convenience store every month to pay using a payment slip,
and you’d end up paying extra fees.

Furthermore, when shopping online, having a credit card allows you to complete the payment instantly, and your items are shipped right away.

There’s absolutely no waste of time or money on fees, unlike with cash-on-delivery or bank transfers.

In other words, having a credit card
directly translates to saving your precious “time” and “energy.”

To live smoothly
and stress-free in modern society,
a credit card can truly be called the foundation of daily life.

Situations Where Credit Cards Are Used

In our human society, where are credit cards used?

In today’s credit-based society,
this is a very fundamental and important perspective for understanding the “invisible fixed costs” that are easy to overlook in household budgeting, as well as “how society works.”

Even people who usually pay with cash
often set up automatic credit card payments for “just this much.”

Utility Bills

When you turn on the faucet, “water” comes out.

When you turn on the stove, “fire” is lit for cooking and other purposes.

When you press the button, “electricity” turns on.

Everyday gaming, uploading, and online games,
these are all forms of “communications” transmitted via a Wi-Fi connection.

“Water,” “fire,” “electricity,” and “communications”
These aren’t automatically provided;
they exist only because of our monthly “payments”.

These payments are set up for automatic payment via credit card or similar methods.

These essential services that we use without a second thought every day
do not just magically appear.

Water flows when we turn on the faucet,
the room lights up when we flip a switch,
and we can watch videos on our smartphones.
All of these are maintained
precisely because of the contract involving monthly “payments”.

Many of these payments are set up as
“automatic payments”, such as credit card payments or direct debits.

Since there’s no tangible sense of cash disappearing from your hands in the form of bills,
even adults tend to lose the sense that they’re actually paying for things.

From a child’s perspective,
it’s no wonder that both electricity and the internet
seem like “free infrastructure that’s automatically available in the world from the very beginning.”

During childhood,
do children ever have the opportunity to actually experience the mechanism of credit card payments, where “a fixed amount is automatically deducted every month”?

In a daily life where payments are automatically deducted from their parents’ wallets,
it is extremely difficult to recognize
“contracts” and“consideration”—the concepts underlying these transactions.

Utility Bills We Don't Pay as Children

Did you ever experience paying by "credit card" when you were a child?

The "actual experience" of having someone pay for you once.

It is extremely relevant and essential.
There is valuable education hidden here.

Even if the funds used for payment come from an allowance or support from parents,
it is worth having children experience the process and reality of
"how much they actually pay every month" firsthand.

This is an experience that will surely be useful in their future,
and it is "financial literacy" itself.

• Check monthly statements together

  Look at specific numbers together, such as basic smartphone fees or household electricity bills.

• Let them experience payments through their own account or card

  Have them deposit money received from parents into their own bank account and experience automatic deductions for subscription services or communication costs from there.

When they get a job in the future
and start living on their own,
experiencing firsthand the reality that "this amount of money is necessary every month"
serves as preparation for the future.

Knowing firsthand the reality of "how much money is actually debited every month."
This is precisely the practical "financial literacy" that is not taught in school.

Shifting from a passive reason like,
"I turn off the lights because my parents will get mad if I leave them on,"
to an active mindset like,
"If I use this much, I'll receive a bill for XX yen every month, so I need to manage it,"
is the first step in developing financial awareness.

Risks of Growing Up Without Knowing and Preparing for the Future

When they get a job, move out, and become independent in the future,
whether or not they know firsthand the reality that "just living requires a fixed amount of money every month"
significantly impacts their start in life.

If they understand the existence of monthly "fixed costs" as a intuitive habit in advance,
they will naturally be able to make plans for how much of their salary should go toward living expenses
and how much should go toward savings or investments.

What would happen if they grew up into adults without knowing any of this at all?

If they grow up into the future without knowing any of this at all,
there is a possibility that the child could end up with this kind of future mindset.

• "I didn't know about that payment!"

  Distrust toward unexpected expenses
  A state of panicking with "I was never told about this," feeling strong shock or doubt regarding unfamiliar payments.

  "Sudden expenses and costs I never heard about"
• "Taxes? What's that!?"

  Anger toward systems and mechanisms
  A state of resisting taxes and social rules out of a sense of unfairness, thinking "I don't want the money I worked for to be reduced."

  "Money unfairly taken away"

• "I don't want to pay!"

  Refusal to pay
  A state of strongly rejecting expenses themselves, stating "I don't want to pay a single penny" because they are unconvinced.

  "Ignoring it because I don't want to pay"

• "I don't want my money taken!"

  Escaping from reality (Neglect)
  A state of postponing problems by ignoring payments due to a desire not to pay.

  "Panicking due to not knowing"

• "Ignoring it because I don't understand"

  Risk of diminished creditworthiness due to neglect
  A state of losing one's creditworthiness due to incurred penalties or inability to get loans as a result of continued non-payment.

  "Rebellion against society"

When you’re suddenly confronted with reality without the necessary knowledge,
there’s a risk that your thinking will come to a halt due to anxiety or frustration.

The “experience of making payments” during childhood is not just about learning how to use money;
it is also an important step toward understanding how you are connected to society and its infrastructure.

While children are still protected under their parents’ care,
even starting with small amounts,
letting them experience “the weight and mechanics of ongoing payments”
is the best education they can receive to help them in the future.

Reframing

If someone lacks "financial literacy" as mentioned above,
they will be confused and won't even know where to start correcting the situation.

Updating negative perceptions—such as panic, rejection, and neglect regarding money and taxes—into a constructive and positive perspective.
Here is a list of 5 key points for "Reframing (Cognitive Restructuring)."

• From "Sudden income reduction I never heard about" to "Financial planning based on take-home pay"

  Recognize "take-home pay (disposable income)" as your actual income,
  rather than the gross salary.

  By adjusting your budget with deductions already factored in,
  you can prevent monthly emotional shocks.

• From "Money unfairly taken away" to "An investment in society and your future"

  View taxes and insurance premiums not as "things taken away unnecessarily,"
  but as a shared living pool of funds for emergencies.

  Reframe them as shared expenses that everyone uses
  to maintain daily peace of mind, such as insurance to reduce medical costs,
  roads, police, and public administrative services.

• From "Ignoring it because I don't want to pay" to "Risk avoidance through early consultation"

  Neglecting unpaid bills directly leads to consequences
  like asset garnishment or adverse credit scores.

  By knowing that "if you can't pay, consulting with local government offices or support windows allows you to use installment or grace period systems,"
  you choose "self-defense through proper procedures" instead of neglect.

• From "Panicking due to not knowing" to "Financial knowledge that benefits you through learning"

  Mechanisms of taxes and deductions (such as year-end adjustments and tax returns)
  should be treated as literacy gained from both school and home.

  Positively view studying these as opportunities
  to prevent overpayment, save on taxes, and increase your net income.

• From "Rebellion against society" to "A sense of control as an independent adult"

  Move one step beyond being dissatisfied with social systems,
  understand the rules correctly, and depending on the situation, even position yourself on the operating side.

  Transform your mindset into a feeling of wisely protecting
  and being in control of your own assets (a sense of independence).

Pocket Money and Salary Amounts

Let’s say your pocket money as a child was “$30.00.”

Let’s say your first salary after starting work was “$650.00.”

That’s a 20-fold difference.

For about 20 years prior to that, my sense of financial reality had been based on a monthly spending limit of “$30.00.”
Then, suddenly, on that day, I received “$650.00”—a sum of money on an entirely different scale.

From the perspective of someone who had lived for about 20 years since birth with a monthly spending limit of “$30.00,”
this is an incredibly dramatic change.

From that day on, you suddenly find yourself holding an astronomical sum of “$650.00.”

When your sense of money changes so abruptly, it’s confusing.

When the scale of the amounts you’re handling changes this rapidly, it’s only natural that anyone’s sense of money can’t keep up,
and it’s no wonder your mind goes blank and you become confused.

If you lack “financial literacy,”
it’s easy to predict that you’ll become unsure of
how to spend your money,
or even how to manage it.

Trap 1. The Trap of "Omnipotence" Born from Breaking Limits

Under the previous allowance system,
making a choice like "saving up for months just to buy the one thing I really want"
was completely natural.

Because budget constraints were tight,
a natural brake was working to make careful judgments about what to buy.

However, the moment you get a lump sum that is 20 times larger, that brake breaks easily.

Enveloped by a strong sense of liberation and omnipotence (an illusion) like
"I can buy anything I couldn't buy before" and
"I don't have to hold back anymore,"
it becomes easy to fall into a state of tossing wanted items into the cart without thinking of the consequences.

Trap 2. The Invisible Wall of Fixed Costs and "Deducted Money"

Another trap is the illusion that the incoming "$650.00" is money that can all be spent freely.

The allowance of "$30.00" during childhood
was pure allowance in its entirety (freely usable money).

Because parents paid for all clothing, food, housing, and utility expenses,
a sense of "money received = money that can be entirely spent"
became deeply ingrained.

However, a working adult's salary is different.
In reality, taxes and social insurance premiums are deducted from it,
and living maintenance costs such as rent, water and electricity utilities, communication fees,
and daily food expenses are subtracted.

Without financial literacy,
you assume that the "$650.00 in the bank account" is money you can spend freely as is,
and when it comes to payments and auto-debits at the end of the month,
it causes panic over "why there is no money left," "it's not enough," or "money disappearing on its own."

Shifting from Impulse Buying to "Asset Building"

To avoid being swayed by sudden environmental changes,
what is necessary is the "financial literacy" that should be acquired before getting a large sum of money.

• Understand your true disposable income after deducting "take-home pay" and "fixed costs"
• Create a system to put a fixed percentage of income into "savings first" before spending
• Distinguish between "Consumption (Necessities)," "Waste (Squandering)," and "Investment (For the future)"

Large sums of money left unchecked without knowing these basic rules will disappear into a wave of waste in an instant.

Taking the perspective that "you don't become wealthy just because your money increased,"
but rather "you can only become wealthy when you have the wisdom to manage the increased money,"
is the very first step to breaking free from confusion.

5 Major Benefits That Credit Cards Bring

Here, we introduce five specific benefits divided into categories,
showing how owning a credit card enriches our lives
and shifts our financial awareness.

• 1. Cash flow becomes "visualized"

  When you use a credit card, when, where, and how much you spent is all recorded on your statement.

  Simply opening a smartphone app lets you see this month's expenses at a glance, naturally making you more conscious of how you spend money.

  Unlike cash, mysterious expenses where "your wallet is suddenly empty before you know it" disappear.

• 2. Points accumulate and help household finances

  Even if you pay in cash, not a single yen comes back to you.

  If you pay by credit card, you always earn points according to the amount spent.

  Accumulated points can be used for your next purchase, converted into miles for travel, or applied to monthly payments,
  resulting in practical savings.

• 3. You can handle major purchases and sudden expenses even without cash on hand

  Life comes with sudden expenses, such as when a refrigerator or washing machine breaks down unexpectedly.

  With a credit card, you can purchase necessary items right away, even if you don't have a large amount of cash on hand.

  A major strength is being able to choose payment methods that fit your income pace, such as installment payments, revolving payments, or bonus payments.

• 4. Social creditworthiness (credit history) builds up

  Using a credit card properly and continuing to pay on time every month becomes your "proven track record of reliability."

  This track record becomes a crucial evaluation criterion in the future when taking out a bank loan to buy a car or a home.

  Using a card responsibly from a young age is also an investment in your future self.

• 5. You are protected in the event of unexpected trouble

  Many credit cards come with theft insurance and shopping protection.

  Even if you lose your card and someone uses it fraudulently, there is a system in place to compensate you for the damages if you report it to the police and card company.

  While lost cash is unlikely to return, a credit card can be said to be safer than cash in terms of security.

Students and Their Families:
Now is the time to take a new step forward

To students who aren’t yet familiar with the concept of payments,
high school students, and your families.

If you’re a high school student currently learning about “wealth building” or “financial education” in class,
you’ve likely already begun to understand the importance of managing your money.
And one of the most accessible tools for putting that management into practice is a credit card.

Addressing Concerns Like, “Is It Too Early for My Child to Have a Card?”

“Isn’t it too early to let them have a card when they’re still students?”
“If I let my child have a card, won’t they overspend and go bankrupt?”

There are quite a few parents who harbor such concerns and reservations.

Precisely because we live in an era where we see cash less often and the “weight of money” has become less tangible,
exposing children to “cashless spending” from a young age
is the best way to prepare them and prevent future financial troubles once they enter society.

While the potential for failure is still small,
let them experience using a card under parental supervision.
That, in itself, serves as a safety net for cultivating sound financial sense in the future.

Age of 18-Year-Old Adulthood: Having More Than One Option

With the lowering of the age of majority,
we now live in an era where individuals can apply for a credit card on their own starting at age 18.

Even if you feel that "giving them a real credit card right away is concerning,"
you can prepare step-by-step options suited to their stage.

• Prepaid Cards / Debit Cards

  By charging only the amount of their allowance in advance,
  or paying strictly within the balance of their bank account,
  there is no need to worry about overspending.

• Family Cards

  Since payments are withdrawn together from the parent's bank account,
  usage history can be safely managed while shared between parent and child.

• Standard Credit Cards (Ages 18 and older)

  By setting a low credit limit,
  they can acquire the skills to manage within a restricted framework.

We have entered a phase not of "preventing them from having a card,"
but of teaching them "which card to use and how to use it wisely."

Turning Financial Discussions into "Everyday Family Conversations"

Once a card is introduced, why not take it as an opportunity to build a habit of discussing money openly within the family?

"Which card earns the most points?"
"Let's look at this month's statement together and review if there was any wasteful spending."

Talking about money at home
is by no means embarrassing
or unrefined.

Rather, it is a remarkably positive and wonderful form of communication
that brightens the family's future and supports the child's independence.

Understand Money and Finances for a Smarter Future

Why not gain financial literacy and start a smart, rewarding, and secure new cash-and-credit lifestyle?

Instead of staying away out of fear that "what if I overspend,"
understand the system correctly and make it your ally.

Choose the perfect card for your child, too,
and let's take the first step together as a family toward a new era of money management.