Handling money in Japan is a unique part of the travel experience. The local currency, the **Japanese Yen (円, *en*)**, is your key to everything from temple offerings to tickets for the Shinkansen. At first glance, the prices can seem staggering—a simple bottle of tea for ¥150 or a bowl of ramen for ¥1,000—but it’s all a matter of perspective.
Understanding the yen isn’t just about converting numbers; it’s about appreciating the history, design, and culture behind the coins and banknotes you’ll use every day. This guide will walk you through the essentials of Japanese currency, from asking the price to understanding why that lunch costs a thousand yen.
Talking About Money: Essential Phrases
These are the fundamental phrases you’ll need when shopping, dining, or managing your cash. Knowing how to ask about cost and payment methods will make your transactions smooth and polite.
Common Money Phrases
これはいくらですか。
これはいくらですか。
Kore wa ikura desu ka.
How much is this?
クレジットカードは使えますか。
くれじっとかーどはつかえますか。
Kurejitto kādo wa tsukaemasu ka.
Can I use a credit card?
現金で払います。
げんきんではらいます。
Genkin de haraimasu.
I will pay with cash.
ATMはどこですか。
えーてぃーえむはどこですか。
Ē-tī-emu wa doko desu ka.
Where is the ATM?
A Coffee for ¥500? Why Yen Has No Decimals
One of the first things visitors notice is the lack of decimal points. Unlike dollars or euros, which are divided into 100 smaller units (cents/centimes), the yen’s smallest unit is simply **one yen (一円, *ichi en*)**. This makes the numbers seem very large in comparison.
Think of it this way: the yen operates like a system based entirely on cents. A $5 coffee is 500 cents; in Japan, a coffee is ¥500. The concept is the same, just without the decimal divider. This happened because of post-World War II inflation, which made smaller, fractional units of the yen (like the *sen* and *rin*) completely worthless. While these units were phased out, Japan never “redenominated” its currency by lopping off a few zeros, unlike some other countries. So, you’re not spending thousands of dollars on dinner, you’re just counting in a much smaller base unit!
From Samurai Coins to Modern Money: A Brief History
Before the yen, Japan’s monetary system was a complex patchwork of coins issued by feudal lords. To modernize the nation and unify its economy, the Meiji government officially adopted the yen in **1871**. The name **Yen (円, *en*)** simply means “round object,” a straightforward description for the new, Western-style round coins that were a stark contrast to the varied shapes of older currency.
Initially, the yen was pegged to the gold standard, which helped stabilize its value and facilitate international trade. This move was a crucial step in Japan’s rapid industrialization and integration into the global economy during the late 19th and early 20th centuries.
Meet the Money: Coins & Banknotes
Japanese currency is both practical and beautiful, with designs reflecting the nation’s culture and history. You’ll quickly become familiar with the different denominations.
Coins (硬貨 – kōka) 🪙
¥1 coin: The smallest denomination. Made of aluminum, it’s so light it can float on water.
¥5 coin: Gold-colored with a hole in the middle. The pronunciation of five yen, *go en* (五円), is a homophone for “good fortune” (ご縁), making it a popular offering at shrines.
¥10 coin: A bronze coin featuring the image of the Byōdō-in Temple in Uji.
¥50 coin: A silver-colored coin with a hole in the middle and chrysanthemums on the front.
¥100 coin: The essential coin for vending machines. Features iconic cherry blossoms (sakura).
¥500 coin: The largest and heaviest coin. It’s one of the highest-value coins in common circulation globally.
Banknotes (紙幣 – shihei) 💵
As of 2024, Japan introduced a new series of banknotes with cutting-edge 3D holograms, featuring prominent figures from the nation’s modern history.
¥1,000 Note: Features **Kitasato Shibasaburō**, a renowned bacteriologist who made significant contributions to public health. The reverse side shows “The Great Wave off Kanagawa.”
¥5,000 Note: Features **Tsuda Umeko**, a pioneer in women’s education in Japan and founder of Tsuda University. Wisteria flowers are shown on the back.
¥10,000 Note: The largest bill, featuring **Shibusawa Eiichi**, the “father of Japanese capitalism,” who was involved in founding hundreds of modern corporations. The back depicts the Tokyo Station building.
Cash, Cards, and Etiquette: Using Money in Japan
While Japan is technologically advanced, it remains a surprisingly cash-based society. Many smaller restaurants, shops, and rural inns may not accept credit cards, so it’s always wise to carry a sufficient amount of yen.
Practical Tips
Use the Tray: At checkout counters, you’ll almost always see a small tray (カルトン, *karuton*). Place your cash or card on this tray instead of handing it directly to the cashier. They will do the same when giving you change.
No Tipping: Tipping is not customary in Japan and can be considered rude or confusing. Excellent service is standard, and the price on the bill is all you need to pay.
Coins are Crucial: Keep your coins handy! They are essential for vending machines, train tickets, temple offerings, and coin lockers at stations.
Foreign-Friendly ATMs: If you need to withdraw cash, look for ATMs at 7-Eleven convenience stores or Japan Post Offices, as they reliably accept international cards.
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