Raising children is expensive and this burden is only exacerbated when living in a country with a high cost of living, such as Japan. A paycheck that may have been enough for a family of three may barely cover necessities for a family of four.
Therefore, the Japanese government provides support to families with children who fall below a certain income level. This support system not only ensures that children in Japan grow up with the basic financial support to provide for their health and education, but it also encourages parents to have children by lessening the financial burden. The financial support is limited to families with children living in Japan, unless the child is studying abroad, so parents are not able to take the subsidy and live overseas.
The amount of support provided is determined based on the age and number of children. For example, a family with a child under 3 years old would receive a stipend of 15,000 yen per month. A family with a junior high school aged child would be entitled to 10,000 yen per month. The amount of money per child can also change depending on the number of children in the family. For example, a family will receive slightly more money for a third of fourth child than they would for their first or second child. The above numbers are the 2012 amounts and are subject to change over time.
These stipends are only available to families who have incomes below the baseline level set by the government. In 2012, this income cap was set at 9.6 million yen for a parent with two children. However, families with higher incomes may also be eligible for certain financial assistance under the Child Allowance Act depending on their circumstances.