In an Era of Rising Interest Rates, 3 Money Management Steps New Professionals Should Take First [For Nursing Students and New Nurses]

Hello, this is Gyakuten Real Nurse.

On September 18, the Bank of Japan decided to raise the policy interest rate from 1.0% to approximately 1.25%. This is the first rate hike in three months, since June.

When you saw the news, didn’t you think this?

“Even if they talk about interest rates, it doesn’t seem to have anything to do with me…”

Actually, it has quite a lot to do with nursing students who are about to enter the workforce. Today, I will skip the difficult economic talk as much as possible and write down only three ‘money management steps you should take first in an era of rising interest rates.’

(To clarify beforehand, I am not a financial expert. What I write here is a general perspective and not a recommendation for investment or contracts. Please check official information for specific decisions.)

To begin with, what changes when interest rates rise?

To put it very simply, it is like this.

• For those who are ‘borrowing money,’ the interest to be repaid is likely to increase.

• For those who are ‘depositing money,’ the interest received is likely to increase.

According to reports, Governor Ueda stated in this press conference that ‘the phase of policy has changed.’ Regarding future rate hikes, the stance seems to be that they have not set a specific interval and will make decisions while monitoring price conditions.

In other words, we cannot say for sure that ‘interest rates will continue to rise’ or that ‘they will stop soon.’ That is precisely why it is important to create a ‘state where you won’t panic even if interest rates move,’ which is what today’s talk is about.

It seems that the outlook varies slightly by generation.

In an economic analysis article, it was introduced that the impact of interest rate hikes differs by generation.

The younger generation tends to have more borrowed money, such as home loans, so the burden is likely to increase. On the other hand, the older generation has more savings, so they are likely to be on the side that benefits from increased interest received.

(Since the publication date of this article is unclear, I will not include the figures. If you are interested, please see the original article from the link below.)

For the younger generation, this is a bit of a concerning story, isn’t it? Even those who say ‘I haven’t borrowed anything yet’ have things they might borrow in the future. Student loans, car loans, and future housing.

Therefore, I have narrowed down the first things to do to three.

No. 1: Know the type of interest rate for the ‘money you are borrowing’

First, let’s clarify if you have any money you are currently borrowing.

For example, there are two ways to determine the interest rate for the Type 2 Scholarship from the Japan Student Services Organization (JASSO).

• Fixed Interest Rate Plan: The interest rate determined at the time the loan ends remains unchanged until repayment is complete.

• Variable Interest Rate Plan: The interest rate is reviewed approximately every five years.

The level of interest rates changes every month. For reference, one scholarship information website stated that for those whose loans end in July 2026, the fixed rate was 3.000% per annum and the variable rate was 2.000% per annum. (*Please be sure to check the latest figures on the official JASSO website. The information I saw is not the official source itself.)

The important thing here is not to decide right now which one is more advantageous, but to understand which type you have.

With the variable rate plan, your repayment amount may change when interest rates fluctuate. With the fixed rate plan, the interest rate does not change. First, try checking which contract you have.

Some nursing students also use hospital scholarships. Hospital scholarship systems vary, such as those that offer repayment exemptions if you work for a certain number of years. It is reassuring to review your contract once to clarify the conditions, such as ‘how long and where you must work’ and ‘what happens if you quit midway’.

Step 2: Organize your ‘unused accounts’ and ’emergency savings’

The second step is to organize the money you have on deposit.

When interest rates rise, interest on deposits tends to increase. However, interest on ordinary savings accounts is still negligible. It is not enough to expect to grow your money this way.

More important than that are the following two points:

1. Prepare an ’emergency fund’ that can be used for anything Keep several months’ worth of living expenses in a form that can be withdrawn immediately in case of illness, injury, or sudden expenses. It is fine to start little by little from your first paycheck.

2. Organize unused accounts Do you have several accounts you opened during your student days that are just sitting there? Since they can incur fees and management hassle, consolidating them into a salary account, a savings account, and a spending account will make it easier to see the flow of your money.

Nurses who work night shifts or irregular schedules often have disrupted daily rhythms and spending habits. That is precisely why I recommend ‘organizing through systems’.

Step 3: Create a rule to ‘pause before borrowing’

The third step is a bit further down the road.

Once you become a working professional, the number of situations where you can borrow money will suddenly increase. Credit card installment payments, revolving payments, car loans, and future home loans.

In an era of rising interest rates, it is important to take a breath when you are about to borrow.

For example, variable interest rates for home loans do not immediately reflect Bank of Japan rate hikes, and the timing and magnitude of the reflection differ by bank. One analysis projected that the September rate hike would see the base rate reviewed around April 2027, with the reflection in repayment amounts occurring after that. (This timing is just a projection or forecast. It also varies by bank.)

As a new professional, a home loan might still be a distant future. But why not decide on a rule like this while you can?

• For installments and revolving payments, look not only at ‘how much you pay monthly’ but also at the ‘total amount’

• Wait overnight before deciding on major purchases

• Don’t make decisions just because ‘everyone else has it’

Doing just this will significantly reduce the chances of thinking later, ‘Why did I sign that contract…?’

What you can do in your first year as a new nurse

When you start working as a nurse, you will have a mountain of things to learn in the first few months. You might not have the mental space to think about money.

So, it is okay not to try to do everything. Doing just these things in your first year is enough.

1. Check the terms of your student loan contract (whether it is fixed or variable, and the conditions for repayment exemption)

2. On payday, transfer a set amount to your savings account

3. Always wait overnight before signing any major contracts

Summary

• The Bank of Japan raised its policy interest rate to around 1.25% on September 18 (the first time in three months since June)

• It is said that interest rate hikes increase the burden on borrowers and increase interest for depositors, affecting generations differently

• The three things new professionals should do first are: ‘check the interest rate type of your loans,’ ‘organize your accounts and emergency funds,’ and ‘establish a rule to pause before borrowing’

• Since numbers and systems change, always check the latest information from official sources

Money matters can feel a bit intimidating. However, just knowing about them increases the number of futures you can choose from.

I am sorry to talk about this while you are busy studying for the national exam. But I want you to be able to properly protect your life after you pass. For today, ‘just knowing’ is enough.

Let’s organize things little by little, together.

Reverse Real Nurse