Very few Thais have emergency funds to handle an unexpected situation: study

[webfact]

A large majority of Thai people don’t have enough money to handle an emergency situation for longer than three months, especially during such a crisis as the pandemic.

 

An emergency fund can be a lifeline when we are faced with a worst-case scenario. It can be very helpful for unexpected life events, such as loss of employment or income, illness, and accident. As the pandemic rolls on and is further complicated by the new Omicron variant, it’s more important than ever to have a safety net to deal with the unknown.

 

“Unexpected expenses can happen at any time. Having some money tucked away just in case can help us deal with financial hardship without sacrificing our assets. During the worst days of the Covid-19 crisis, for example, a savings buffer helped protect us against income loss,” says Kamolphu Phuredithsakul, assistant managing director at Thai Credit Retail Bank’s Micro Finance Business and Lending Branch Group.

 

But, for many Thais, the reality is very different. According to a financial literacy survey by the Bank of Thailand (BoI), a large majority of Thai people don’t have enough money to handle an emergency situation for longer than three months, especially during such a crisis as the pandemic.

 

Full story: https://www.thaipbsworld.com/very-few-thais-have-emergency-funds-to-handle-an-unexpected-situation-study/

 

-- © Copyright Thai PBS 2021-12-24

 

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[pixelaoffy]

Gov of Thailand not for the poorest . The most divided country in whole of asia.  The BMW and mercedes next to the beggars 

[darksidedog]

A lot of them don't have emergency funds for three days, let alone three months.

[ThailandRyan]

Why was a study needed?  It is a well known fact that most folks live from one day to the next here, and never plan for the future.  My now Ex wife wanted an emergency fund for the just in case.  Put 100k into an account, fixed deposit for 90 days with it continually rolling over.  In month 2 she had closed the account, paid the penalty and spent it on frivolous items.  When I confronted her, the old screaming and yelling event occurred and the Kitchen knife was brandished, all the while why she continued to yell I did not take good enough care.  6 months later she found herself a true millionaire and off she went......

 

Look at the Debts families have now as well, most times they rob Peter to pay Paul as far as paying one debt one month and then another the next month while staying ahead of the banks phone calls and letters.  It is worse when they borrow from the village loan shark, and they can never get out of debt and loose the family land etc.....

Edited December 24, 2021 by ThailandRyan

[bkk6060]

My guess is if they have any at all the average savings here is less then 20,000 b.

[ezzra]

There is no such term in the Thai language as "emergency funds" Thais mostly lives from day to day, from the hand to the mouth...

[trainman34014]

Plenty of Thai Families around us that don't have a Pot to <deleted> in let alone Emergency Funds !

[John Drake]

I am my wife's family's emergency fund.

[worgeordie]

More debt than savings that's for sure , price rises in

the basic of foods Pla tu , Eggs (if they haven't got the PM's

recommended 2 chickens ) and Rice , expensive at retail

level, but very cheap at farm level. very difficult times for

many people .

regards worgeordie

[Mavideol]

unfortunately this is not only related to Thailand

[JustAnotherHun]

2 minutes ago, Mavideol said:

unfortunately this is not only related to Thailand

True. I wonder how many citizens of European countries would have the funds to survive a three months period.

The big difference to Thailand there's (still) a strong social security system

[EricTh]

This isn't true because the pandemic is already close to two years and we  see a lot of Thai still surviving beyond 3 months.

 

 

Edited December 24, 2021 by EricTh

[zzaa09]

28 minutes ago, JustAnotherHun said:

True. I wonder how many citizens of European countries would have the funds to survive a three months period.

The big difference to Thailand there's (still) a strong social security system

And a much stronger familial and social extension.....and less fanciful lifestyles/thought.

Edited December 24, 2021 by zzaa09

[daveAustin]

This is what happens when one believes that when you die you’ll be back anyway so it doesn’t matter. While I prefer the Thai way of being in the moment, in times like these it is better to be a bit grown up…. sometimes ????

[RichardColeman]

My wife is an ex-kindergarten teacher. During her school years - after paying her university off - she bought land, loads of it, great hills of it in fact. Now its all full of rubber and fruit and veg. OK she does not make a fortune from it, but its put her daughters through uni and fed the parents. 

 

I think the problem is that thai youth are not taught enough about savings and planning in schools and have all the abiltiy to budget as Anutin and the PM to plan a sensible opening

[jacko45k]

1 hour ago, ThailandRyan said:

When I confronted her, the old screaming and yelling event occurred and the Kitchen knife was brandished, all the while why she continued to yell I did not take good enough care.  6 months later she found herself a true millionaire and off she went......

Be optimistic, you got off cheap, not free mind, but cheap. 

No warning signs.. they are usually there?

[daveAustin]

27 minutes ago, JustAnotherHun said:

The big difference to Thailand there's (still) a strong social security system

Adequate if you’re paid in, but in general state protection in Thailand is woeful. Unless you have family to back you up you’re basically fugged. Spose you could always go to the temple. 

[ThailandRyan]

25 minutes ago, EricTh said:

This isn't true because the pandemic is already close to two years and we  see a lot of Thai still surviving beyond 3 months.

 

 

Surviving how, with little to spend, loosing everything including jobs and business opportunities, and with little help from this Government.  Not thriving at all....

[ThailandRyan]

11 minutes ago, jacko45k said:

Be optimistic, you got off cheap, not free mind, but cheap. 

No warning signs.. they are usually there?

Oh I got off pretty good. Everything in Thsiland in the daughter's name. Lost only a car I bought her in the US. Warning signs started only after 7 years but I ignored them obviously for a few more. Thought she would realize what she had, but in the end all she wanted was more.   

[Jimbo2014]

Some have postulated reasons for this.  The benign weather and environment making planning for cold winters and famines unnecessary.  Others have speculated on the socioeconomic history of the country, namely corvee and slavery.  Others have proposed that the large and strong system of Tam Boon, Boon Khun and burden of family and friends supports debt.  The later will suffer under failing demographics as there are fewer young to support a growing ratio of dependents.  The end result, it seems few Thais plan well for the future, those who do are predominantly Thai-Chinese ethnicity. 

[Robin]

Most Thais lack any imagination to be able to plan ahead.  Plus the fatalism of  "If you talk about it you will make something happen."

I have to do the planning for our family;  wife simply does not want to think about it.

Is it a national characteristic or that bad schooling does not teach basic planning or common cense?

[JimmyJ]

Same could be said of USA citizens,

[Kenny202]

2 hours ago, trainman34014 said:

Plenty of Thai Families around us that don't have a Pot to <deleted> in let alone Emergency Funds !

So true. And I pity the poor buggers much of the time but really in my experience they seem to pess it away as fast as they get it. Many businesses have a few good days and then shut for a couple. Only work when they need some money today. They just never get ahead and I don't know how you can help people like that, which covers certainly a majority of the rural people here. They are lucky they can return to their villages and live on literally nothing but rice, and plenty of other stuff can be readily foraged. Usually some family member will put them up. I really don't know how Thailand has survived thus far, particularly 2 years on. The Isaan and rural people working in the tourist areas sending money back home. Thats all dried up. I thought I could feel the economy starting to bite up here a few months ago but was in Makro yesterday and busier than ever. Makes no sense to me.

 

One of the economic strengths of Thailand was before they had virtually zero employment and zero inflation. I don't know if anyone has noticed but general items here increasing monthly. Little by little but over a few months everything seems to have gone up 30-40%. Now CP has control of everything should come as no shock I guess but if there is going to be a nail in the coffin of Thailand I reckon it's going to be inflation 

Edited December 24, 2021 by Kenny202

[The Cipher]

Quote

When it comes to setting money aside, Kamolphu recommends saving a minimum of 10 percent of your income each month.

For example, if you earn 30,000 baht a month and your fixed expenses come to 12,000 baht, the calculation is as follows:

30,000 baht (income) – 3,000 baht (saving) – 12,000 baht  (fixed expenses) = 15,000 baht (monthly personal expenses)

15,000 baht is then divided by 30, meaning that your daily budget is 500 baht.

A few thoughts on this article. (1) It's really unfortunate that personal finance isn't taught in schools. People should have access to this info. If someone will translate and distribute I'll write/teach a beginners course for free.

 

(2) The quoted guy is right. Budgeting is critical and prioritizing the savings bucket before allocating the spending bucket is also the right move.

 

But at the same time like, if you're earning 30,000 and saving 10% that's like...$100 per month. Better than nothing but probably not gonna get you to where you want to be, either.

 

Quote

Cutting “The Latte Factor” can also add up to big savings, she adds, pointing out that stopping the spending on small purchases like a latte can add up to a large amount of money over time.

Thanyawan has applied this approach in her own life, cutting down on the 50 baht she was spending every day on iced coffee and putting the cash into savings.

Man I hate these coffee examples (not sure why everyone uses coffee as the example). Specifically because saving 50 THB/day isn't enough to move the needle. 50*365 = 18,250 in increased savings per year. Less than $1,000. Like, I get that it's an illustrative example, but damn - everyone seems to paint coffee as the spending villain. Maybe I'm just triggered because I buy a lot of coffee ????

 

Anyway this brings me to the final point: (3) cutting spending is bounded on the lower end by zero. Can't spend less than 0. But increasing earnings really has no upper limit. Teaching people to be responsible with their money is important, but I feel that part of that financial responsibility ought to be making sure that you have enough income to live a good life while also being responsible on the savings/investment front.

 

The art of personal finance is walking the line between living well today and planning for the future. Starting early and expanding income is the best way to make sure you can do both.

[Kenny202]

47 minutes ago, Robin said:

Most Thais lack any imagination to be able to plan ahead.  Plus the fatalism of  "If you talk about it you will make something happen."

I have to do the planning for our family;  wife simply does not want to think about it.

Is it a national characteristic or that bad schooling does not teach basic planning or common cense?

Never a truer word was spoken! I mean physical laziness is one thing but I can't abide mental laziness. My wife has an utter aversion to sit and think through anything for even a minute, when she has nothing better to do apparently than scroll through Facebook for hours investigating other peoples lives. Forget planning, they seem to give every opportunity in life to set them selves up for failure. Have you ever seen 2 Thais organizing to meet somewhere? Meet you near Lotus on big road (the big road is 15km long and has 7 Lotus shops). I miss not having someone to bounce things off or give ideas. 

[BritManToo]

2 hours ago, webfact said:

But, for many Thais, the reality is very different. According to a financial literacy survey by the Bank of Thailand (BoI), a large majority of Thai people don’t have enough money to handle an emergency situation for longer than three months, especially during such a crisis as the pandemic.

Most of them don't have the money.

But they do have a family farm where they can go and live.

There was a similar report, "most Americans couldn't pay an unexpected $500 bill"

Most of the world live hand to mouth, it's the way it is now, it's the way it's always been.

 

Foreigners love to bash Thais, but in reality they're probably more capable of surviving in an emergency than anyone in the western world, and as least they have no danger of freezing to death like many Brit pensioners every winter.

Edited December 24, 2021 by BritManToo

[sead]

Doesn't have emergency funds ROFL. Dear god they don't even have money nor the ability 

Edited December 24, 2021 by sead

[hotchilli]

2 hours ago, webfact said:

A large majority of Thai people don’t have enough money to handle an emergency situation for longer than three months, especially during such a crisis as the pandemic.

The wealth divide has been increased over the last 6 years or more... should we be surprised?

[BritManToo]

21 minutes ago, Kenny202 said:

Have you ever seen 2 Thais organizing to meet somewhere? Meet you near Lotus on big road (the big road is 15km long and has 7 Lotus shops).

But they do have a smartphone with LINE, and you can share your GPS location at the touch of a button.

[BritManToo]

41 minutes ago, The Cipher said:

Man I hate these coffee examples (not sure why everyone uses coffee as the example). Specifically because saving 50 THB/day isn't enough to move the needle. 50*365 = 18,250 in increased savings per year. Less than $1,000. Like, I get that it's an illustrative example, but damn - everyone seems to paint coffee as the spending villain. Maybe I'm just triggered because I buy a lot of coffee ????

My MiL lives on 600bht/month pension, she'd be glad of that 'coffee money'.

I bung her 3kbht every month, as long as she doesn't come to stay with me.

Wealthiest woman in the village with the extra she gets from me.

I could probably live on 100bht/day if I had to.

Thailand is a cheap place to live.

 

PS.

I stopped drinking coffee, 50bht x2 a day was a waste of money.

2-3 cups of tea (same teabag) a day is much more cost effective (1bht).

Edited December 24, 2021 by BritManToo