The Real Cost of Preschool in Japan: A Guide to Subsidies and Hidden Fees

"Preschool is only for the wealthy, costing over 2 million yen a year."

Have you given up on the idea for that reason?

In fact, by smartly utilizing the 'Free Early Childhood Education and Care' program that started in 2019, and combining it with additional local municipal subsidies, it's possible in some cases to reduce the actual out-of-pocket cost to as low as '¥50,000-¥70,000 per month' (a level comparable to a licensed daycare plus extracurricular activities).

From a financial planner's perspective, this article provides a detailed simulation of the real total cost, including 'hidden costs' not mentioned on official websites, and explains the complex 'conditions for subsidy eligibility.'

1. The Bottom Line: Rules for Preschool Subsidy Eligibility

When your child attends a preschool (classified as a non-licensed childcare facility), tuition does not automatically become free once they turn three. You must meet the following two conditions.

Condition 1: Is there a 'Need for Childcare' (e.g., dual-income household)?

To be eligible for the subsidy, you must receive a 'New Type 2 Certification' (or New Type 3 Certification) from your local municipality.

• Who is certified: Dual-income families (based on municipal standards, such as working 48-64 hours or more per month), those providing long-term care for a family member, those actively seeking employment, etc.
• Who is not certified: Families with a stay-at-home parent where there is no recognized need for childcare.

Condition 2: The Subsidy is Capped at ¥37,000 per Month

Unlike licensed daycare centers, the full tuition is not covered.

• For children aged 3-5: A subsidy of up to ¥37,000 per month.
• For children aged 0-2 (for households exempt from residence tax only): A subsidy of up to ¥42,000 per month.

This means that for a preschool with a monthly tuition of ¥100,000, your out-of-pocket cost would be '¥100,000 - ¥37,000 = ¥63,000.'

2. Uncovering the 'Hidden Costs' Not Listed on Official Websites

Budgeting based on 'tuition fees' alone can lead to unpleasant surprises later.

In reality, running a preschool involves an accumulation of the following 'unseen expenses.'

Annual Cost Breakdown Simulation (First Year, 3-Year-Old Class)

★ Important Note:

Especially for 'B. Major Preschool Chains,' Summer and Winter School programs during long breaks are often de facto 'mandatory,' resulting in an additional annual expense of ¥100,000 to ¥200,000.

3. Tokyo's Powerful 'Top-Up' Subsidies

If you reside in Tokyo (especially in wards like Minato, Shibuya, or Setagaya), you may be eligible for additional subsidies from your local municipality on top of the national ¥37,000 grant.

Example from Minato Ward (Subsidy System for Non-Licensed Childcare Facility Tuition)

• Eligibility: Ward residents whose children attend facilities that meet the supervisory standards for non-licensed childcare facilities.
• Subsidy Amount: Combined with the national grant, the ward subsidizes the difference between the preschool's tuition and what would be paid at a licensed daycare (subject to a cap).
  • In practice, this can mean a total subsidy of up to nearly ¥80,000-¥100,000 per month, sometimes reducing the out-of-pocket cost to just a few tens of thousands of yen.

※ As these systems change annually, always check the latest information on 'subsidies for non-licensed childcare facilities' on your local ward office's official website.

4. A Head-to-Head Comparison: 'Licensed Daycare + Activities' vs. 'Preschool'

Preschools are often perceived as 'expensive,' but how do they stack up when comparing total costs?

We've created a model based on a dual-income family (household income of ¥10 million) with a 3-year-old child.

Comparison Chart of Actual Monthly Out-of-Pocket Costs

【Conclusion】The difference is only about ¥20,000-¥40,000 per month

In areas of Tokyo with generous subsidies, the cost difference compared to a licensed daycare surprisingly narrows.

Considering that for this price difference, you get 'over 5 hours in an English environment every day' instead of a '45-minute English class once a week,' the return on investment (cost-performance) can be considered very high.

5. Summary: First, Confirm Your 'Certification' and the 'Total Cost'

You can't judge the cost of preschool based on tuition alone; you must consider both 'hidden costs' and 'available subsidies.'

1. Check with your municipality: Confirm if your work situation makes you eligible for the 'New Type 2 Certification.'
2. Check with the school: Request an 'annual cost estimate' that includes fees for summer school, bus service, etc.
3. Check for local subsidies: Research if your local city or ward offers any 'top-up subsidies for non-licensed childcare facilities.'

By clarifying these points, you may find that the bilingual education you've been dreaming of is surprisingly within reach.

Tuition Simulation & Educational Pathway Consultation

"Is preschool a realistic option for our family's income?" "I'm confused about the subsidy application process."

At ELT, we offer individual counseling to help you balance educational funds with your English education goals.

• Life Plan Consultation: Long-term financial simulations that include school fees from elementary school onwards.
• School Selection: Recommendations for high-quality preschools that fit your budget.
• Supplementing English Exposure: Creating a 'home-based English learning plan' for families not attending preschool.