Thais And Money

[Firefan]

I know there is no such thing as an "average" Thai - but you get the point.

I have Thai friends that live from pay check to pay check - some earning 10000 b/mth and some much more - but they always sem to be scarce at the end of the month. Now; cars/house/condo are all nice and bought via loans (which might explain where some of the money goes).

But the kicker is that they will blow cash like mad on shopping/booze(12 year old whiskey w. coke or XO cognac. or better..) - never really saving a dime no matter what income level. They have certainly felt the recent increases in costs/inflation (they run out of money 20 days into the month rather than 25! ).

I guess it is a good thing that they "force-save" into house/condo.

Some will argue that farang are the same, but even the English teachers I know here earning 30k/mth(remembering the extra costs; visas,homeleave,long distance telephone,health insurance Etc.) seem to be able to understand to save for a rainy day. (ok not all! ). I guess part of the reason could be that the farang will not have the "family-security-net" that still is part of Thai culture.

Any similar experiences, not blaiming anyone, just trying to understand what I percieve as different money management mentalities.

Cheers!

[dekka007]

A little generalisation here..

Offer a Thai 7000 baht today or 10,000 tomorrow - They would take the 7000.

Payday - just look at the amount of traffic on the road - Most fill the car up on payday drive it until it runs low/out again for a few days and park it up until next payday

Edited August 16, 2006 by dekka007

[GuestHouse]

My wife handles money at the penny level far better than I do, she knows to a penny how much is in her purse, our bank accounts and to a ¼ penny how much was in my wallet.

At the pound level, she struggles to understand the sense in placing 25% of my income into long term investments. That never stopped her buying her own home and having healthy savings before I met her, but she nevertheless concentrates on ‘immediate needs’ at the cost of ‘future needs’.

I guess she’d say I concentrate on ‘future needs’ at the cost of ‘immediate needs’…

Perhaps balancing that makes us an ideally matched couple.

[Donz]

I got friends of all nationalities living pay check to pay check. I think there good as anybody else with money.

When i was younger i used to live pay check to pay check too, I would rather get pissed with my mates then save $50.00 and have a boring weekend, even now days my fiancee saves a ton of money compared to me

[kerryk]

One method of saving is not obvious and that is gold purchases. I know many Thai women that buy rings and things and when they need money sell them. I also know many Thai women who put money in a “Share investment”, very common. They also invest in friendship. I spent 20,000 baht on a three day birthday bash and the now when I need to move some things from Chiang Mai to Pattaya the lady is driving her truck from Chiang Mai to Pattaya (while I take the plane) and all she will accept is gas money (and no, in case you wondered it is not that kind of relationship, she is married and I am spoken for). I know a number of Thai women that have saved enough to purchase a business outright or with a down payment and bank loan. I know a number of women who have financed farms from loans from kindly older Western men and are doing quite well as successful farmers.

I have noticed a lack of self control when it comes to buying autos, cell phones and cell phone cards. I have also noticed a lack of self control when it comes to drink. And as one of the other posters mentioned it is difficult for me to explain the money I get from investments is greater than buying a small business and working for small profits. I think it is because she does not see the money or perhaps because I have control of the money. She would rather work for it and then she feels she is in control of it.

I have tried to explain to her if I finance a business I expect to be first on the list every month to pay back the original investment before profits are taken out of the business but this does not seem to register. And then of course there is my question, “why do you want it?” Her answer, which she seems to consider complete, logical and rational in every way is, “because I want it.”

[fxm88]

Some will argue that farang are the same,...

Are Americans still considered farang? See here, here, here,...

What would you have Thai people do? Put their money in a Thai bank account earning 1% a year? Then they'd only be losing 5% a year to inflation.

Or maybe they could find a better return someplace else... I know! Loan shark it out to poor country folk for 20% a month.

Does Thailand have any kind of bankruptcy/insolvency protection?

Offer a Thai 7000 baht today or 10,000 tomorrow - They would take the 7000.

No offense, but I'd take the 7000 today, too -- I might not be able to find you tomorrow.

Edited August 18, 2006 by fxm88

[Chang_paarp]

Thais And Money, How do the average Thai handle money?

Most Thais I know handle money with their hands like the rest of us.

Have you got pictures of something new?

[TRIPxCORE]

The method I have seen most Thais use is that they are only worried about what happens today. Tomorrow is tomorrow and they will worry about it when it gets there. I have seen this a common trait among Thai people and I have heard it's a common trait among Filipinos too. Saving for the future is not something most of them have any concept of.

[The Coder]

Thai's absolutely do have long term financial security plans, just about every single one of them. It's just that they do so in a different way than us. We think of a sound future being a pension, savings, or other types of investments but it always comes down to cash for the future. Thai's on the other hand see having children as the key to retirement. Their children will give them financial security after they themselves are out of the work force and take care of them when they get old. And because their kids start making decent money within about 20 years they tend to retire or semi-retire pretty early. I've seen it time and again and hey, it works.

Being single, I frequently get the opposite reflection from Thai's. They are confused why I don't have kids and feel sorry for me and say as much. They ask who will take care of me when I get old. Sometimes it makes me reflect their way is more loving and better than ours.

[Sing_Sling]

Two examples:

Some of our workers have the choice of getting paid 250/day or a larger sum once a month . . . they all choose the daily income. (but work seven days a week because they want to, they even open and operate the refinery themselves - good guys)

We took about 25 friends to Samui two years back to celebrate our wedding anniversary . . . Staying at a 5-star resort meant we had to take cars or tuk-tuks to town.

Speaking to the owner of this one taxi, she siad 50baht per person per trip (but then was shocked when I said she could take one of us at a time) or 200baht for four of us. I tried to negotiate with her that every one in our group would use only her taxi if she gave us a rate of 150baht per trip and we were staying ten days. Lots of dough to be made.

Her response = no, 200baht. Our response was to use different taxis or tuk-tuks and leave her cab empty as we walked past waiting at the roadside. She came up to me smiling after the third day and said: 200baht ok for you . . . Thick as two bricks.

So, 1 baht today is more important than 5 baht tomorrow

[Heng]

Thai's absolutely do have long term financial security plans, just about every single one of them. It's just that they do so in a different way than us. We think of a sound future being a pension, savings, or other types of investments but it always comes down to cash for the future. Thai's on the other hand see having children as the key to retirement. Their children will give them financial security after they themselves are out of the work force and take care of them when they get old. And because their kids start making decent money within about 20 years they tend to retire or semi-retire pretty early. I've seen it time and again and hey, it works.

Being single, I frequently get the opposite reflection from Thai's. They are confused why I don't have kids and feel sorry for me and say as much. They ask who will take care of me when I get old. Sometimes it makes me reflect their way is more loving and better than ours.

It's all relative. Having the kids take care of you in many cases is the kids taking care of the family assets that have been handed down and added to from generation to generation. It's certainly not always 'sponging off your kids,' which may be the side of Thai society that a lot of folks here seem to be in most direct contact with.

That said, like in most societies, the LOS has a majority that handle their funds more frivolously than the minority of well to do long term planners.

Edited August 19, 2006 by Heng

[likite]

My experience is Thais live for today and forget tomorrow. There is also quite an element of face. They will gladly spalsh out thousands of baht on a fancy car to impress everyone (usually borrowed money) but then return to a one room hovel for the night. Mobile phones are generally for show too. The latest model and most expensive the better. As my old mum used to say "All fur coat and no knickers"

[The Coder]

Certainly Thai's make their share of suboptimal financial choices as mentioned (bad loans, insisting on the latest Nokia for flash value, not seing the forest through the trees). But when it comes down to it, they tend to get by on about 1/10th the amount farangs do. I sometimes spend in one day what the average thai earns in an entire month.

[PETERTHEEATER]

I know there is no such thing as an "average" Thai - but you get the point.

I have Thai friends that live from pay check to pay check - some earning 10000 b/mth and some much more - but they always sem to be scarce at the end of the month. Now; cars/house/condo are all nice and bought via loans (which might explain where some of the money goes).

But the kicker is that they will blow cash like mad on shopping/booze(12 year old whiskey w. coke or XO cognac. or better..) - never really saving a dime no matter what income level. They have certainly felt the recent increases in costs/inflation (they run out of money 20 days into the month rather than 25! ).

I guess it is a good thing that they "force-save" into house/condo.

Some will argue that farang are the same, but even the English teachers I know here earning 30k/mth(remembering the extra costs; visas,homeleave,long distance telephone,health insurance Etc.) seem to be able to understand to save for a rainy day. (ok not all! ). I guess part of the reason could be that the farang will not have the "family-security-net" that still is part of Thai culture.

Any similar experiences, not blaiming anyone, just trying to understand what I percieve as different money management mentalities.

Cheers!

You have only to go to an ATM and see the piles of receipts littering the floor to know that the average Thai is not interested in how much is in their account nor that someone elese can pick up the receipt and see for themselves. I assume that when the ATM refuses to give them a requested amount then they know they are broke!

[Donz]

The Thais i know take care of there money very well, they all think about the future and not today. But i only hang out with the hi-so class.

I dont know about the poorer Thai that live in the countryside, but the ones i know from bangkok handle there money better then most prople i know.