1. Why almost no one deposited money when postal savings began in 1875
Postal savings began experimentally on May 2, 1875 (Meiji 8), at 18 post offices in Tokyo and 1 in Yokohama [1]. Although the rules were drafted in 1873, the opening was delayed because discussions about calculations, bookkeeping methods, and how to invest the deposited money did not reach an agreement [1].
Maeshima Hisoka later reflected on this situation. He noted that people in Edo (old Tokyo) prided themselves on a temperament of "not keeping money overnight." Because Japanese people lacked the habit of saving, the purpose of postal savings was not easily understood, and for a while, there were no depositors at all [1]. Even if a system is created, it has no meaning if people do not come. So, what did the country do next?
2. Why giving away small amounts of money to attract savers had little effect
The Station and Post Office Bureau (the government office that later handled postal services) tried distributing 10 sen, 20 sen, and 30 sen from collected funds to 1,000 ordinary people, hoping they would immediately deposit it as savings [1]. They also tested a strategy where people who recruited several depositors were given some money themselves [1].
Despite this intense effort, Maeshima stated that the effect was "very small" [1]. Giving away money to encourage deposits did not communicate the *reasons* for saving. The country needed to explain those reasons in words. Indeed, the announcement of the opening included specific reasons for recommending savings.
3. The four reasons the government gave for saving money
The purpose of the postal savings opening announcement is summarized in four points [1]. First, one should practice frugality and save if there is any surplus. Second, doing so helps prepare so that one will not suffer when ill or in old age, even if relatives are gone. Third, the collected money can grow as capital for industry. Fourth, deposits of 10 sen or more increase principal and interest, can be withdrawn at any time, and are safe [1].
These four points highlight both preparation for one's own future (the second point) and the role of supporting society’s industries (the third point). The explanation suggests that saving is not just for oneself but is also part of a system that circulates money for everyone. How do today’s children think about saving?
Safety Note: Adults should supervise discussions about financial concepts. When exploring the fourth reason—that deposits are safe and grow—remember this refers to the specific historical postal savings context described in the source, not modern bank guarantees.
4. Do children today save money? Results of a 2015 survey
In a 2015 survey by the Central Committee for Financial Education, titled "Survey on Children's Life and Money," between 40% and 50% of elementary, junior high, and high school students (excluding lower elementary grades) answered that they had their own savings [2]. Among upper elementary students, 49.4% said they would save New Year’s money at banks or post offices, a decrease from 61.5% in the previous survey (2010) [2]. This reflects results from fiscal year 2015 and does not necessarily represent current ratios.
The desire to save differs from the method of saving. About 70% to 90% of children said they wanted to save a lot of money. Furthermore, students who saved a fixed amount regularly (weekly or monthly) had higher rates of planning their allowance spending. Conversely, children who received money but did not save it had higher rates of "buying things immediately when they wanted them" [2]. However, this shows a relationship between the habit of saving and planning; it does not prove that saving causes one to become more planned. So, how does saved money grow?
5. How compound interest works: interest that earns more interest
The same 2015 survey included knowledge questions. The correct answer rate for the statement "Banks and post offices return savings with interest" was 20.6% for middle elementary students and 32.1% for upper elementary students [2]. Junior high and high school students faced a compound interest question: If you deposit 100 yen at an annual interest rate of 2% for 5 years, including the 2 yen interest from the first year, the total interest exceeds 10 yen. This statement is correct, with answer rates of 25.2% for junior high students and 34.7% for high school students [2].
Let’s calculate it. Year 1: 102 yen. Year 2: Add 2% of 102 yen to get approximately 104.04 yen. By adding that year's interest to the previous total each time, after 5 years you have about 110.4 yen. The interest is about 10.4 yen, which exceeds 10 yen. This confirms the survey statement is correct when calculated.
There is also a rough rule of thumb for compound interest: "72 divided by the interest rate (%)" gives the approximate number of years for money to double [3]. At 2% interest, 72 ÷ 2 is about 36 years. However, this is strictly an estimate.
6. Why the idea that children who wait succeed was reconsidered
A study published in 1990 by Mischel and colleagues was widely introduced as showing a strong link between how long preschoolers could wait for an immediate reward and their academic performance and behavior in adolescence [4]. This is known as the "marshmallow test."
In 2018, Watts and colleagues re-examined this with a different sample. This re-verification focused on a large, diverse group of children whose mothers had not graduated from college. One motivation was that the original study involved a "highly selected group of children," making it difficult to apply the results generally [4]. Children who waited 1 minute longer at age 4 showed slightly higher academic ability at age 15, but the strength of this link was half that reported in the original study. When controlling for family background and early cognitive ability, the association shrank by about two-thirds [4]. Most of the link to academics came from whether they could wait "20 seconds or more." The link to behavioral outcomes was small and rarely statistically significant [4].
Was the experiment a lie? No. The association became smaller but remained. That waiting power helps a little is different from saying that children who cannot wait are destined to be disadvantaged.
7. Activity: write your own reasons for saving and calculate compound interest
Write down three "reasons you want to save" on paper, then draw lines connecting them to the four points from the original announcement: frugality, preparation for emergencies, the role of social money, and safety with interest [1]. Some people will have reasons that are the same; others will be scattered.
To practice compound interest, assume you deposit 100 yen at 2% annual interest. Use a calculator or manual calculation to find the totals for Year 1, Year 2, and Year 3. The formula each year is "previous total × 1.02." If you calculate up to 5 years, check if it matches the approximately 110.4 yen mentioned in the text.
If you wish to consult original sources, Maeshima Hisoka’s recollections and the announcement’s purpose are found in the Postal Museum’s research bulletin, while the children’s survey is in the Central Committee for Financial Education’s report [1]. You can find these via the source list.
Safety Note: When exploring financial history and concepts like compound interest, remember that the original announcement highlighted personal preparation, industrial capital growth, and the safety of principal and interest [1]. These are historical descriptions and not current financial advice.