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Thais have very poor financial management skills


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Research: Thais have very poor financial management skills

BANGKOK, 1 May 2014 (NNT) - Thais have scored very low in regard to their financial management skills, according to Piyabutr Chonvicharn, Vice-Chairman of the Kenan Institute Asia.


Mr. Piyabutr cited a recent survey by the Bank of Thailand and the Finance Ministry as showing that three groups of people most at risk in piling up on debt were students, low-income people, and farmers. Shockingly, they make up at least 70 percent of the Thai population. He said that their poor spending habits resulted in higher household debts, which had risen from 55.6 percent in 2008 to an alarming 82.3 percent in 2013.

To deal with this problem, the Kenan Institute and the City Foundation have joined hands in a 3-year campaign to educate these groups of people, especially students. The survey showed that the latter group’s excessive spending habit was influenced by commercial advertisements on mainstream media.

Meanwhile, Mr. Teera Phutrakul, the Chairman of the Thai Financial Planners Association, stated that at least 90 percent of Thais neither keep a record of their income and expenses, nor take the initiative to manage their finances. Therefore, he said it is an important agenda to fix this kind of attitude in order to let the country move forward.

Lastly, Mr. Ratchapol Laovanitch, the Managing Director for Miracle Creation also stated that the media should play a more important role in educating Thai people on how to manage their finances.

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If their financial skills are so poor, how do they live here on 9,000 baht per month when most of us would starve to death on less than 5-10x that amount?

Speak for yourself.

Financial management is all about how much you spend, not how much you make.

It"s also about how much you have in ready cash.I have just spent 40k today for my daughters schooling.No problem I knew I had the money.I am not an economist,but I have always lived within my means.

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There is a great deal of pressure placed onto the consumer in Thailand by the policy of upping the prices for 3.5 weeks in the month then offering the true price for 3-4 days as an amazing "discount". Unfortunately the Thai/Asian consumer necessity to detail how you got a better price is to blame here rather than the suppliers.

The big change, as detailed before, is readily available credit. There are PLENTY of people in Thailand that can afford a lot however there are a LOT more people acting like they can. One day somebody's going to say "I need my money now" and there is going to be a problem. Basically the same thing that happened in 2008 in the US & Europe. The problem is that the level of credit worthiness has not been well assessed in Thailand so there are a lot of people borrowing many multiples of their wage without any thought/guidance.

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I again reiterate: it's not how much you make; it's how much you spend that reveals your ability to manage finance

It's a lot easier to live within your means when your salary provides a living wage. In the UK the minimum wage of £12k a year is enough to provide rent, food and utilities with something left over to spare for entertainment. Here it isn't.

Ps how the hell did you get a visa if you earn 10k baht a month!?

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I again reiterate: it's not how much you make; it's how much you spend that reveals your ability to manage finance

It's a lot easier to live within your means when your salary provides a living wage. In the UK the minimum wage of £12k a year is enough to provide rent, food and utilities with something left over to spare for entertainment. Here it isn't.

Ps how the hell did you get a visa if you earn 10k baht a month!?

prob like me, hes not white.

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When I was young my primary school signed everybody up for bank accounts and parents would give there kids a little every week to teach them about savings.

In Thailand it's the opposite, parents give their kids money to spend daily. Even though meals are often provided, teachers encourage kids to bring cash, possibly because they profit from the rubbish food sold in schools.

Furthermore, they way money is 'shared' in families is a disincentive to savings, as family members feel entitled to cash they didn't earn.

It would be interesting to see a breakdown of spending habits among the poor, I suspect smart phones, beauty products and entertainment would be high on the list. The min huge raise in the min wage should see an increase in savings, instead it's led to record debt levels.

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Thai mentality is often driven by the id, and not the superego. Management is a function of the superego.

Thus, you see the many cases of getting into debts just for the sake of consumption.

Simplistic, but spot on if gamblimg is included in consumption.

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I again reiterate: it's not how much you make; it's how much you spend that reveals your ability to manage finance

It's a lot easier to live within your means when your salary provides a living wage. In the UK the minimum wage of £12k a year is enough to provide rent, food and utilities with something left over to spare for entertainment. Here it isn't.

Ps how the hell did you get a visa if you earn 10k baht a month!?

prob like me, hes not white.

So when applying for a visa if you aren't Caucasian the rules differ? Must have missed that bit

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Research: Thais have very poor financial management skills

Would be believable, but are their research skills any better ?

Edited by JoeThePoster
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Like my wife says about the credit cards: "They're great. All you need to do is sign a piece of paper, and they give you things."

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I would like to see the campaign considered fit to cope with the itch of buying a new i-phone, LCD-TV or pickup truck on credit beneath the morons clued to the screen and fed with Thai soap operas 24/7 showing how posh the lifestyle in Bangkok is with maids, marble floors a fleet of luxury cars and houses bigger than their local hospital.

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If their financial skills are so poor, how do they live here on 9,000 baht per month when most of us would starve to death on less than 5-10x that amount?

oh but plenty in the group u mention FAIL bigtime and have others (family, friends) paying for some stuff or get into more financial problems... the other day a friend of mine paid +/- 2000 thb clearing a debt from his (older) brother.... in case u wonder, i live on 20.000 THB

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