As you can see, the price of a can of soda is $1 USD. Let me just say that these vending machines are all over the place in Japan. In fact, look at the second picture.
They sell cigarettes in vending machines! I do not smoke so I am unsure how much cigarettes cost in the states but a pack of Marlboro cost $2.67 USD.
I apologize for the reflection at the bottom but I must say that Japanese marketing is light years ahead of the US. The menu just looks so much better. The McChicken meal is $4.58 USD (Sorry, I know I should really talk about the Big Mac but McChicken is my favorite fast food sandwich of all time!)
Starbucks! The coffee frappuccino is $3.67 USD. Notice that they put the caramel frappuccino at the top of the page since it sells for a higher price but Starbucks America decided to put the coffee frappuccino on top (you can check it out by going there today).
From what I can read, it says 100 yen ($0.83 USD) for 10 minutes. It would be interesting if there is a big line up to pay like it is in the states and people are always going over the 10 minute mark.
Here is another fast food restaurant – KFC. A chicken sandwich, a leg, fries and drink cost $6.25 USD. I actually happen to like this combo, since you get a sandwich and a chicken leg. Notice again the more colorful and prettier menu.
Look at the mortgage rates here! I cannot understand Japanese, but no matter which number you look at, the rate is low! I’m guessing here but the 20 year fixed mortgage rate is 2.82% annually. Too bad I cannot borrow money in Japan and buy a house in the states.
As in every country, the lower the mortgage rate, the lower the savings yield. If you put money in a 2-year CD in Japan, you get 0.80% annually.
Summary and ThoughtsI noticed that the prices in most areas I have seen are similar to the equivalent in Southern California with the exception of fast food restaurants. Mortgage rates are extremely low, but so is the savings account rate. As my friend told me, there is no point in putting money in the savings account in Japan, since you get almost nothing. But instead of spending it like us Americans, Japanese people would invest with their money. I wish people in the states would learn from the Japanese people in this regard.
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{ 12 comments… read them below or add one }
Yup, some banks in Japan even have 0% returns. You get nothing for parking your money with the banks.
That’s why there is something called “Yen trade”. The Japanese are constantly on the lookout to get better value on their investments. Hence they pump money into emerging economies like India, China etc. But they are equally adept at pulling away the money once they see someone else giving them better returns.
0% return can’t be for savings account right? I can understand checking account but savings?
I’m surprised the Japanese stock market does not go up crazily since I’m sure no one in the right mind would put money into their bank account.
Maybe they lack personal finance sites like this one in Japanese?
David san, O genki desu ka?
Did you pick up some Japanese while you were there?
Nice photos, thanks for sharing.
It’s my long time dream to visit Japan – not any closer to it yet.
Golbguru: O Genki desu!
I didn’t have much of a chance to do anything since it was a short business trip.
I also wanted to visit Japan for all my life and I got to go twice already this year! They were both like 2 days trips but it was fun while it lasted.
Good luck on your dream to go to Japan. You have to go though, it’s a really cool place.
Thank you for the article, it’s really interesting to learn how they live in other countries. But you didn’t mention interest rates in Japan, are they high or what? Mortgage rates are low, but what about interest on usual credits and loans?
cool pics, but I think we can’t compare these prices with American prices without comparing salaries. If they make 2x what we make here, then it’s like the soda would cost $0.50 instead of $1.00
But really cool pics and I didn’t know their interest rates were so low.
Credit Blogger: If you look at the picture below the mortgage rate, that’s the interest rate on savings account (savings yield).
J2R: You are correct, it’s hard to find this out though since my friends work in different industries and the same position can vary widely in salary.
Nice pictures! My husband and I were living in Japan when we saved to quit. You should have gone into the grocery store to take a picture of the $30 melons!
To put some more things into perspective…it costs about $300,000-750,000 to have a new house built (and it’s very rare to move into a “previously owned house”), not including the land.
However, by living in an inconveniently located old house, with a roommate, my husband and I were only paying ~$275 per month for rent.
Also, transportation costs to work are always covered by your employer.
shannon: Great info and amazing way to save money! I am encouraged by your motivation to save by moving into a “inconveniently located old house, with a roomate” living place.
I think vending machines are so popular in Japan because space is at a premium there. Real Estate is very expensive in Japan, with some small lots going for $1 million or more, so it’s cheaper just to sell wares through a vending machine rather than purchasing a building and opening a business. By the way, cigarette vending machines used to be quite common in the U.S., but were made illegal in many areas because they offered kids an easy way of getting their smokes.
Savvy Frugality: I never knew the US had cigarette vending machines! I agree that Japanese it probably doesn’t make sense in Japan to sell convenient store type of products in a store because rent is probably very high there.
I understand it’s amazing that they have vending machine for cigarrates. Everything seems to be so expensive in Japan. But after staying in Japan for 2 years I found some ways to save money in Japan and still trying to DIG IN MORE! haha well nice post man