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Japan: Expensive?
 Japan is thought by most people far too expensive for a study destination. This is certainly not the case. While prices are obviously higher than in many other countries, the difference is reduced for long-term students by the fact that salaries are higher and students can legally work for up to 4 hours per day once permission has been obtained. Part time jobs can easily cover a significant portion of your expenses (but should not be counted on for everything).
The currency in Japan is the Yen, symbol as above left - a "Y" with two crossbars. The cost of living in Japan is perhaps higher than in either Europe or the Americas, but the per capita GDP is also high. The difference with Japan is that the national income is fairly evenly distributed through society - far more so than in countries such as the United States, Brazil or India, and more than in Europe. This means that what would be considered a menial or otherwise low-paid job in other countries can still command a fair salary in Japan. The average Japanese also seems to spend a lot - the social and cultural requirements of gifts and entertainment mean that a large proportion of that salary is circulated in the domestic economy. Eating out is also relatively cheap compared to for example the UK.
Japan is a largely cash-based society, and many people carry a lot of cash around with them. This is mainly due to the fact that Japan is a very safe country and there is less chance of being robbed while out and about than in many other countries - although it is always necessary to be careful, of course. The result is that until recently people did not really have credit cards or debit cards, making life difficult for travellers who bring them to Japan. While the situation is improving, the fact that there are still relatively few foreigners in Japan means that banks are not used to dealing with foreign currencies outside of the major cities, so expect occasional hassles. Have at least some Yen cash with you whenever possible, and in particular never expect to buy a train ticket with a credit card.
Customs relating to money: some points to remember
- When out with Japanese friends, expect to have people offer to pay for a lot of things for you. In fact, it can be difficult to use a lot of money at times. When paying (you pay as you leave in most restaurants and bars in Japan), make sure that you offer to cover your share of the bill - but note that it can also be rude to overdo it and insist on paying, as it is to accept without comment. And of course, as guest, people will expect to pay for you. You should try to return the favour.
- In Japan, you generally don't tip. Restaurants, bars, etc. will not be expecting a tip. Appreciation is generally shown to friends by giving a gift of some kind (although not for a meal out!), but as a foreigner while you won't be expected to give anything, people will be very pleased if you do. Money is not usually given except to children at New Year ("otoshidama"), and at weddings.
- There is no need to bring large amounts of small notes. It is almost always possible to get change when you buy something, even using a 10,000 yen note for something that will cost you less than 100 yen. You may be refused change if you just want to exchange a large note for smaller one, but you will never be refused change if you buy something.
- It is often better to have a phone card than to keep cash for pay phones in Japan - coin phones are becoming increasingly rare, but you can buy phonecards at any convenience store (international and local cards, not all phones can make international calls).
- There is no need for money in toilets - public toilets are free.
- If you lose your wallet or purse, don't worry too much - in Japan it is quite likely that someone will find it and take it to the nearest police station or police box. Make sure you leave some means of identification inside, and do contact the police if you lose anything.
- Make sure that you are always carrying enough cash, as cashpoints (ATMs) in Japan close early - generally around 7pm - and earlier on weekends. There are some 24-hour ATMs but they are limited. This rather odd habit of switching automatic things off is fairly common - all alcohol and tobacco vending machines also switch off at 11pm. (Similarly, the JR cyberstation shinkansen information website closes from 10.30pm to 6.30am - the only website anywhere in the world we have found so far that closes.)
Using Money in Japan
Banking in Japan can safely be summarised as "inconvenient". Japan is still largely a cash-based society, one of the consequences of it being such a safe country - it is not unusual to carry several tens of thousands of yen in your wallet amounting to the equivalent of a thousand US dollars or more. Provided you have that kind of money, of course. And don't be careless - you can still be robbed in Japan if you try.
Credit cards:
The good news is that credit cards are becoming more widespread in Japan. The bad news is that you can usually only use Visa and less often Mastercard. American Express and Diners Club are virtually useless outside Tokyo and maybe Osaka. In many large stores and supermarkets, you can use a visa card - but sometimes only that store's visa card (although this is also changing slowly). In others, you can also use an international card. It is often possible to get a cash advance at a bank with your passport and a visa card, but generally you cannot use the ATMs for cash advances - you have to go to the counter. Many banks will refuse out of hand to make a withdrawal on a credit card, particularly in rural areas, so make sure that whatever you do, you have several ways of getting at your money.
Traveller's cheques:
Traveller's cheques are far more useful. It is recommended that you bring Japanese yen or US dollars for ease of use and to make your life simpler when changing them for cash - Yen would be least likely to encounter problems. Always take your passport with you when you go to the bank, and your alien registration card if you have one. Just in case, bring some cash as well when you first arrive - you might not be able to find a bank open to change a traveller's cheque. If you are going to rural areas, seriously consider getting the cheques denominated in yen rather than dollars. It might just make your life easier.
Cash:
Japanese yen cash is the easiest of course, and since Japan is fairly safe, you can comfortably carry cash in most places - provided you are careful, of course. Careless people can be robbed in any country. Again, you can easily change US dollars all banks with foreign exchange counters (not all banks have foreign exchange counters). Other currencies are also more or less easily convertible; the more exotic the currency, the longer it may take. There have been reports of banks faxing copies of banknotes to head office for verification as they had never seen German Marks before, so don't get too exotic or it might take days. In most large cities, however, you won't encounter any major difficulties with most common currencies. Recommended currencies are US dollars and Japanese Yen.
Bank transfers:
Sending money from your bank to an account in Japan is the easiest and perhaps the cheapest method. You can open an account fairly simply with your passport and student card, although most banks will also only open an account for you if you have an Alien Registration Card as well (i.e. you generally have to be on a student, work or other long-term visa). Transfers usually cost a flat fee irrespective of the amount (generally around 4,000 yen in total). See below for details about accounts at banks and the post office.
Bank cheques:
Don't bother. It'll be too much hassle and take too long (i.e. days or weeks). Don't even dream of writing a personal cheque. Most Japanese don't use personal cheques, and one drawn on a foreign bank is more likely to be accepted out of curiosity value than as a banking transaction. I.e., not at all.
Accounts
It is possible to open bank accounts and post office savings accounts in Japan.
Post office savings accounts.
The post offices in Japan operate a banking system that will cover most of your banking needs.
It is relatively easy to open an account, and the advantage is that the post office coverage is genuinely national. You will be able to access the ATM's or counter services in remote villages or other obscure places you may find yourself if and when you travel. Many of the banks do not have the same geographical coverage.
The interest rates paid on your deposits will be low, but that isn't likely to be a consideration. You will usually need to find a post office with English speaking staff, or have some patience, or just learn how to say 'Yuu-bin chokin no kouza o tsukutte kudasai' ('I would like to open a postal savings account'). (And smile politely until they realize that you are serious). Regardless of what you may hear to the contrary - it is definitely possible to open an account even if you are on a tourist visa. It is also no problem to open one without having an Alien Registration Card. Your passport is sufficient. You just need an address for them to send the card and statements to.
Bank Accounts
Although the system has recently begun changing, the banking system in Japan remains one of the worlds' less flexible and least efficient. ATM machines rarely operate 24 hours a day - until recently they were switched off at 6pm on weekdays and never operated on weekends. Smart cards and EFTPOS remain rarely used, there is no tradition of check accounts, and credit card usage is comparatively low compared to other OECD countries. In short Japan remains very much a cash society. However you will need an account if you are staying long term.
You do not need a student visa to open a bank account, your passport and proof of an address is usually sufficient (although some banks may ask for the alien registration card - if you don't have one and they refuse to open an account, try another bank). It is possible to open the account even if you are studying in Japan using a tourist visa. However please note that you will probably encounter communication barriers - it's a good idea to go to the bank with someone who can speak Japanese. Some of the better schools arrange for the bank staff to come to the school rather than the other way around - it's something you can easily check.
The interest rates paid on your deposits will be lower than in most other countries and were so well before Japan's recent economic problems, however for students this isn't likely to be a consideration.
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