Rising Household Spending Allowances in Japan: Insight from Meiji Yasuda

In Japan, a recent survey by Meiji Yasuda Life Insurance Co. reveals a notable rise in monthly spending allowances for husbands, known locally as "okozukai," now averaging approximately 36,835 yen. This figure marks an increase of 3,764 yen from last year, the second-highest since the survey's inception in 2018. Conducted in March, the survey gathered insights from 1,620 married individuals across various age groups, highlighting significant shifts in household finances.

The increase in allowances aligns with broader salary adjustments and cost-of-living increases. Among male respondents aged 20 to 50, 58.2 percent credit their increased allowance to higher income, 29.9 percent to rising living costs, and 19.4 percent to workplace promotions. This financial boost surpasses union wage targets from the "shunto" wage negotiations and the 1.6 percent rise in consumer prices reported by the Ministry of Internal Affairs and Communications for February.

A senior economist at Meiji Yasuda notes this as a significant indication of wage hikes positively impacting household budgets, potentially driving economic growth. The survey also highlights a substantial increase in average household savings, reaching a historic 18.5 million yen, attributed to rising incomes. This trend reflects households' strategic financial management to balance essential expenses with savings, a pattern seen as wives largely oversee household finances, with 62.3 percent of them in charge according to a 2022 report from the National Institute of Population and Social Security Research.