Covid-19 pandemic highlights the importance of financial literacy

[webfact]

 

Financial misery has engulfed both individuals and small businesses as a result of the economic fallout from the coronavirus pandemic and the lockdowns and restrictions that have accompanied it. SMEs, which are the primary source of employment and the key suppliers of goods and services to a large segment of the population, have been the hardest hit. Mom and pop stores as well as informal employment and self-employment in micro-enterprises have been severely affected by the government’s repeated orders to shut in a bid to curb the spread of the novel coronavirus.

 

To help entrepreneurs and merchants combat the repercussions of this unprecedented health and economic crisis, the government, state agencies, and banks have launched relief programs aimed at those in need.

 

The Thai Credit Retail Bank (TCRB) has also stepped up to help micro SMEs, the most underserved segment. In addition to a financial relief package, the bank’s Tang To Know-how (Make Money, Save Money, Invest Money) program designed to improve financial literacy can help them manage the financial uncertainty and stress brought on by the Covid-19 outbreak.

 

Full story: https://www.thaipbsworld.com/covid-19-pandemic-highlights-the-importance-of-financial-literacy/

 

-- © Copyright Thai PBS 2021-07-20

 

- Whatever you're going through, the Samaritans are here for you

- Follow ASEAN NOW on LINE for breaking COVID-19 updates

[ThLT]

Always the people's fault... "buying too many cappuccinos."

Here's another title: "No matter your 'financial literacy' you're screwed in these conditions"

Edited July 20, 2021 by ThLT

[hotchilli]

How much has the government borrowed?

[trainman34014]

A lot of them can't add 2+2 without a calculator or an electric till that does it for them !

[cocoonclub]

3 hours ago, ThLT said:

Always the people's fault... "buying too many cappuccinos."

Is it not? There’s a difference between an SME defaulting on a loan it took on a solid business plan that worked pre-pandemic vs. people financing cars and other consumables that can’t afford. 

 

[herfiehandbag]

"Covid-19 pandemic highlights the importance of financial literacy".

 

Hmm, are we talking government or private individuals here?

[The Hammer2021]

Just a cop out. The wealthy power elite keep the people impoverished, ignorant,scared and now sick...

[Forrests Father]

It’s about education. 90% of Thais don’t understand the concept and the consequences of interest. 

[The Cipher]

This topic should be made mandatory in schools. And not just in Thailand either.

[ArcticFox]

If Billy has a manufacturing plant which can produce 10 million doses of vaccine per month at a retail price of $50 per dose with output increasing by 250% every four weeks and the vaccine price increasing by 10% per month, how long will it be before Billy is the world's first Trillionaire?

[The Cipher]

Quote

If Billy has a manufacturing plant which can produce 10 million doses of vaccine per month at a retail price of $50 per dose with output increasing by 250% every four weeks and the vaccine price increasing by 10% per month, how long will it be before Billy is the world's first Trillionaire?

Funnily enough, there's actually not enough information given to solve this problem.

[ArcticFox]

12 minutes ago, The Cipher said:

Funnily enough, there's actually not enough information given to solve this problem.

It's a joke.  Not a thesis.
But I understand now.  SARS-coV-2 infections attack the centers of the brain responsible of humor, satire, and the ability poke fun at the absurdities of life.
I'd estimate that this point the vast majority of AseanNow members have been infected with the "Long" form of this disease and will languish though the rest of their lives in misery without being able to crack a smile or have a good gawhaff while pining away, "If my embassy would have only had the humanity to provide expats with a shot!"
My guess is that Chinese and French expats will be a much happier lot. 

Edited July 20, 2021 by ArcticFox

[ThLT]

16 hours ago, cocoonclub said:

Is it not? There’s a difference between an SME defaulting on a loan it took on a solid business plan that worked pre-pandemic vs. people financing cars and other consumables that can’t afford. 

If you haven't noticed, there is a global pandemic and recession, and the tourism industry has been wiped out in Thailand. 

You seriously think the problem is the lack of "financial literacy"?

[cocoonclub]

4 hours ago, ThLT said:

If you haven't noticed, there is a global pandemic and recession, and the tourism industry has been wiped out in Thailand. 

How did the pandemic cause anyone buying a car that he cannot afford? 

 

4 hours ago, ThLT said:

You seriously think the problem is the lack of "financial literacy"?

Yes. 

Edited July 21, 2021 by cocoonclub

[ThLT]

 

Quote

How did the pandemic cause anyone buying a car that he cannot afford?

You do know people had an unpaid car, business, house/condo, etc., before the pandemic, right?
 

Edited July 22, 2021 by ThLT

[Thomas J]

On 7/20/2021 at 11:44 AM, webfact said:

In addition to a financial relief package, the bank’s Tang To Know-how (Make Money, Save Money, Invest Money) program designed to improve financial literacy can help them manage the financial uncertainty and stress brought on by the Covid-19 outbreak.

LOL  

This should be a short course.  If your business is closed and you are not taking in any money you are broke. 

 

[cocoonclub]

46 minutes ago, ThLT said:

You do know people had an unpaid car, business, house/condo, etc., before the pandemic, right?

Not everyone. The difference I call financial literacy. 

[ThLT]

4 hours ago, cocoonclub said:

Not everyone. The difference I call financial literacy. 

Most people who have debts from cars, condo/house, business debts, etc. have them since before COVID. 

[Mr Meeseeks]

5 minutes ago, ThLT said:

Most people who have debts from cars, condo/house, business debts, etc. have them since before COVID. 

Difference is they may have had the ability to service those debts before. 

[ThLT]

Just now, Mr Meeseeks said:

Difference is they may have had the ability to service those debts before. 

Pandemic has been going on since a year and a half. Without the pandemic, people would probably have had no issues—but even those who were "financially literate" who saved even 1 full year of "emergency funds" but who lost their job, are still screwed.

No matter the "financially literacy," those who lost their job/business because of the pandemic are screwed—even if they were highly "financially literate" is my point.

[cocoonclub]

 

2 hours ago, ThLT said:

Most people who have debts from cars, condo/house, business debts, etc. have them since before COVID. 

Some people didn’t take on debt in the first place. And not everyone who did take on debt went bankrupt or is defaulting now. So there is a difference and that difference I call financial literacy. 

[pissedoff2am]

Serious question: Have any Thai government employees been laid off without pay?

[ThLT]

3 hours ago, cocoonclub said:

Some people didn’t take on debt in the first place. And not everyone who did take on debt went bankrupt or is defaulting now. So there is a difference and that difference I call financial literacy. 

Yeah, but this isn't what is being discussed. The issue is people who have debts or are having financial difficulties—during almost 2 years of a pandemic and recession... the lack of "financial literacy" isn't the problem.

[cocoonclub]

13 hours ago, ThLT said:

Yeah, but this isn't what is being discussed. The issue is people who have debts or are having financial difficulties—during almost 2 years of a pandemic and recession... the lack of "financial literacy" isn't the problem.

Then you haven’t read my initial post. I wasn’t referring to people losing their jobs and savings due to the pandemic. I wasn’t referring to SME who took on debt on a solid business plan. I was referring to people who are defaulting on debt because of lifestyle accessories they couldn’t afford in the first place.
 

Losing your job and savings because of a worldwide pandemic cannot be blamed on financial illiteracy. Taking on debts for a fancy car you cannot afford can. The first group has my full sympathy. The latter not so much. 
 

Many people would like to drive a nice Benz. Some of them realise they cannot afford it. Others don’t and need shít hitting the fan to find out the hard way. The difference is called financial literacy.
 

 

 

 

Edited July 23, 2021 by cocoonclub

[ThLT]

33 minutes ago, cocoonclub said:

Then you haven’t read my initial post.

I have. Here is your "refutation" of my initial post:

 

On 7/20/2021 at 6:59 PM, cocoonclub said:

Quote

Always the people's fault... "buying too many cappuccinos."

Is it not? 

So, no, it's not "always the people's fault" like you seem to imply.

The rest of your post:

 

On 7/20/2021 at 6:59 PM, cocoonclub said:

There’s a difference between an SME defaulting on a loan it took on a solid business plan that worked pre-pandemic vs. people financing cars and other consumables that can’t afford. 

Okay, sure. And? 
 

35 minutes ago, cocoonclub said:

I was referring to people who are defaulting on debt because of lifestyle accessories they couldn’t afford in the first place.

Yeah, sure. What's the point you're trying to make?
 

33 minutes ago, cocoonclub said:

Taking on debts for a fancy car you cannot afford can. The first group has my full sympathy. The latter not so much. 

Yeah, again, sure. What's the point you're trying to make?

[ThLT]

In your previous 4-5 posts, you've just been saying things like "Yeah, but there are some people...," "Yes, but there is also this...," "Yes, but some people haven't done this...."

 

Okay. And? You're just saying basic information everyone knows. There isn't even an argument in any of your posts.

 

I didn't say: "financial literacy doesn't exist."

I didn't say: "this applies to absolutely every single person in all of Thailand."

I didn't say: "this is the sole reason, and there are no other reasons that exist."

 

What I am saying is that: There has been a world-wide pandemic for almost two years, we're basically in a recession, the travel industry has been wiped out in Thailand and every single country of the world, businesses have been closing left and right, there is only a fraction of customers due to measures/lockdowns/recession, and tens of thousands have lost their jobs—in many cases, people in Thailand being in financially difficulty at the moment has more to do with that, than just simply "lacking in financial literacy."

@cocoonclub

Edited July 23, 2021 by ThLT

[cocoonclub]

18 minutes ago, ThLT said:

So, no, it's not "always the people's fault" like you seem to imply.

I was referring to a specific group of people, those who spend money on lifestyle accessories and consumables they can’t afford in the first place, and I made it pretty clear that I was referring to those and only those. For those people whom

i was referring to, all of them, it is their fault I’m afraid. 
 

And btw, you seemed to be referring to the same group of people as you were explicitly pointing out the “cappuccinos”. 
 

19 minutes ago, ThLT said:

You're just saying basic information everyone knows. There isn't even an argument in any of your posts.

 

I didn't say: "financial literacy doesn't exist."

I didn't say: "this applies to absolutely every single person in all of Thailand."

Great, so we seem to agree then. Appreciate you went back to my original post so we figured out that we are actually having the same opinion. 

[ThLT]

1 hour ago, cocoonclub said:

And btw, you seemed to be referring to the same group of people as you were explicitly pointing out the “cappuccinos”.

What I meant with "too many cappuccinos" is that it's a common example of financial literacy, that is said to people.

For the situation of an almost 2-year pandemic, recession, businesses closed/ing, tourism industry wiped out, tens of thousands having lost their jobs, and so on... in most cases, financial literacy doesn't apply. For some people, spending only 40฿ every day to eat nothing but mama noodles won't fix the issue. How can you apply financial literacy if you have no money?

The point about that was: if someone is completely broke with no money, indebted, no job... with the pandemic and recession the way it is, then "studying" financial literacy (like the article suggests) will do absolutely nothing.

 

Edited July 23, 2021 by ThLT

[Heng]

Finance courses/degrees in colleges all over the world preach the benefits of leverage.  Don't pay down your mortgage/make use of low interest loans and instead enjoy the benefits of tax deductions, etc.   And when you suggest that zero debt is better, proponents of this belief often react like you suddenly started cursing in church. 

[cocoonclub]

36 minutes ago, ThLT said:

The point about that was: if someone is completely broke with no money, indebted, no job... with the pandemic and recession the way it is, then "studying" financial literacy (like the article suggests) will do absolutely nothing.

It would do something: learning from past mistakes to not end up in the same situation again when <deleted> hits the fan next time.