NRC proposes law to educate Thai public on monetary affairs

[webfact]

NRC proposes law to educate public on monetary affairs

BANGKOK, 30 April 2015, (NNT) - An NRC member has suggested that the new charter include a law mandating the government to educate citizens on financial affairs and investment knowledge.

Chairman of the NRC subcommittee overseeing economic, monetary and fiscal reform Paiboon Nalinthrangkurn said the provision would hold the government responsible for teaching the public to manage their financial affairs, thereby improving the quality of life. Mr. Paiboon proposed that Section 85/1 of the draft constitution be revised to empower an establishment to achieve these fiscal education goals.

The suggestion came after studies showed that the majority of low-income Thais, especially those with limited education, have little financial acumen. Mr. Paiboon claimed that the lack of financial education has contributed to social and economic issues. He cited the looming household debt, which is now at 84.2 percent of the Gross Domestic Product.

The NRC member pointed out other common issues among under-educated or low-income Thais, such as overspending, informal debts, and pyramid schemes. Mr. Paiboon said the findings are clear indication that the public severely needs to improve their understanding of monetary affairs.


-- NNT 2015-04-30

[Fat Haggis]

A law to MAKE them more astute?

You can lead a horse to water..... People need to want to learn, forcing stuff on them through a law sure does wonders.

Why not just say all poor Thais will be taken into education camps and made to learn Prayuths core 12 values.

And we're still not allowed to use the D word?

Household debt is also caused by the increase in the cost of living but the average daily wage doesn't increase?

I'd love to see these smart arse thinkers spend a day planting Casava, or a day lugging baskets at harvest time, and get handed 300-500 baht a day!!

[robblok]

A law to MAKE them more astute?

You can lead a horse to water..... People need to want to learn, forcing stuff on them through a law sure does wonders.

Why not just say all poor Thais will be taken into education camps and made to learn Prayuths core 12 values.

And we're still not allowed to use the D word?

Household debt is also caused by the increase in the cost of living but the average daily wage doesn't increase?

I'd love to see these smart arse thinkers spend a day planting Casava, or a day lugging baskets at harvest time, and get handed 300-500 baht a day!!

I dont agree with you here.. ok, it should not be a law but more education would help.

People often have no idea what they are getting into and if they are a bit more educated it might safe a lot of grief.

[NongKhaiKid]

My landlady's sister, with a good education, ended up in serious financial difficulty including with loan sharks which had her hiding out in Bkk for a couple of years. She wanted to invest in a risky business and was warned off by everybody including me but it wasn't what she wanted to hear as the Baht signs in her eyes won and she lost out big time.

[Fat Haggis]

rob, is there any such law you know of in the country of your origin that would do this ?

Were you ever educated about basic economics and how to budget your earnings once you were in employment whilst in Primary, or secondary school?

I wasn't, and I would say that Banks in Thailqnd are the bigger problem as they are the ones who sign off on loans and credit cards without so much as checking if that customer can need minimum payments, is in full time employment etc.

It's those institutions who need the educating as well.

I've overspent lots of times, bills came in I wasn't expecting it to be as high, it's left me skint, lived on overdrafts for months, I'm willing to bet I'm not alone amongst the expats here. who educated us? .... We educated ourselves after realising we had to change lifestyles to make sure we had the means to live from day to day. ?

[robblok]

rob, is there any such law you know of in the country of your origin that would do this ?

Were you ever educated about basic economics and how to budget your earnings once you were in employment whilst in Primary, or secondary school?

I wasn't, and I would say that Banks in Thailqnd are the bigger problem as they are the ones who sign off on loans and credit cards without so much as checking if that customer can need minimum payments, is in full time employment etc.

It's those institutions who need the educating as well.

I've overspent lots of times, bills came in I wasn't expecting it to be as high, it's left me skint, lived on overdrafts for months, I'm willing to bet I'm not alone amongst the expats here. who educated us? .... We educated ourselves after realising we had to change lifestyles to make sure we had the means to live from day to day. ?

I actually have had a decent education and know about these things. I think you might misunderstand what he means with a law. Not all laws force people to do things, it might also be a law that makes schools give more education on this subject. That is a different kind of law that you are thinking of. You are thinking of learn it or go to jail.. I am thinking at just an extra subject at school.

I know that where I come from these things like budgeting are given at certain schools and especially at people who are not so bright. Actually I am happy I learned about stuff like compound interest and so on. (not something you can explain to everyone).

What you are talking about credit checks and so on.. where I am from they took that a few steps further.. saying that if you loan out without proper checks you can get into trouble. Then people got angry as it was harder to get credit.

[Tatsujin]

Oh, this is laughable ... the state encouraged all of this, with banks/financial institutions offering zero credit, 100,000 baht cashbacks, financing for ever, on cars, homes, loans for farmers etc, encouraging "the people" to get as much debt themselves as possible, then they are surprised when people can't pay it back.

The only thing they need to "educate" people about is to stop listening to the lies from the Government, Banks, Financial Institutions, Car Dealers, Real Estate Agents etc etc ...

And the most simple rule of all for them to understand ... if you can't afford it, don't get it.

But I know that last one will fall on deaf ears as those in power "want" people indebted to them.

[robblok]

Oh, this is laughable ... the state encouraged all of this, with banks/financial institutions offering zero credit, 100,000 baht cashbacks, financing for ever, on cars, homes, loans for farmers etc, encouraging "the people" to get as much debt themselves as possible, then they are surprised when people can't pay it back.

The only thing they need to "educate" people about is to stop listening to the lies from the Government, Banks, Financial Institutions, Car Dealers, Real Estate Agents etc etc ...

And the most simple rule of all for them to understand ... if you can't afford it, don't get it.

But I know that last one will fall on deaf ears as those in power "want" people indebted to them.

Of course.. with education comes better credit checks.. but your 100% right they are taunting loans here like its nothing. Those 2 things are in direct conflict with each-other.

[IMA_FARANG]

As I said before it is not a happy day for me today.... and I am a bit testy I guess.

Anyway, there is an obvious reason why the high so elite does not WANT the average Thai worker to be educated about financial matters.

That reason is that the business of issuing and collecting debt on credit cards is very profitable for certain sectors of the Thai capitalist high so elite, and the foreign banks (not only the Thai banks) want to perpetuate the myth that a Credit card is a way to prosperity for everyone.

Buy now, pay later, low interest is the Capitalist poison that makes workers and even governments dependent on and slaves to the rich for their lives and even for the future generations.

The myth of "free" credit is the long lasting insidious poison of Capitalism.

[tbthailand]

A perfect example of precisely how clueless the current 'good people' running Thailand are...

First of all, a member of the NRC should be aware that "constitutions" are not "legislation", nor are they the right tool for passing laws.

Second, in order for the household debt north of 80% of GDP, it is rather obvious that "educated" Thais with money and the means to borrow money are the problem, and not the "poor, uneducated Thais" - another typical and condescending statement from the morons in control of the country.

[Strangebrew]

need I say more?

[oneday]

If you want to propose a law, then...

...make a law to improve overall education.

...make a law to improve teacher IQ's.

...make a law to only allow well educated people into politics.

...make a law to send government officials who propose stupid laws to go back to school.

[ExPratt]

"The suggestion came after studies showed that the majority of low-income Thais, especially those with limited education, have little financial acumen"

Well what a surprise that is . When you are living hand to mouth Financial acumen amounts to , get money , buy food. Not really necessary to know the latest Prices on the Dow , or Yen dollar exchange rates

[ExPratt]

What about teaching the educated rich people how to stop being corrupt

[rethaier]

First they will need a decent basic education.

[greenchair]

Lesson 1.

You must pay borrowed money back.

Lesson 2.

There will be interest that you will not be able to afford.

Lesson 3.

Do not borrow money.

SAVE! !?????

[emilymat]

"Darling, I've been to the sales and saved 15 pound on this 30 pound coat. I know I don't need it but it's such a bargain".

"Yes, but I stayed home and saved 30 pounds. That's a better bargain. "

We all know that, but it's such a simple lesson.

[elgordo38]

rob, is there any such law you know of in the country of your origin that would do this ?

Were you ever educated about basic economics and how to budget your earnings once you were in employment whilst in Primary, or secondary school?

I wasn't, and I would say that Banks in Thailqnd are the bigger problem as they are the ones who sign off on loans and credit cards without so much as checking if that customer can need minimum payments, is in full time employment etc.

It's those institutions who need the educating as well.

I've overspent lots of times, bills came in I wasn't expecting it to be as high, it's left me skint, lived on overdrafts for months, I'm willing to bet I'm not alone amongst the expats here. who educated us? .... We educated ourselves after realising we had to change lifestyles to make sure we had the means to live from day to day. ?

I learned about saving early in life. One day while visiting my grandmother I happened to pull the living room rug back and found her "bank" She worked hard all her life growing/selling vegetables(after her husband and 3 sons died) and did not apply for her pension till she was 75. It took me 10 years to convince her she was entitled to the money and was not stealing from the government.

[gandalf12]

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Oh, this is laughable ... the state encouraged all of this, with banks/financial institutions offering zero credit, 100,000 baht cashbacks, financing for ever, on cars, homes, loans for farmers etc, encouraging "the people" to get as much debt themselves as possible, then they are surprised when people can't pay it back.

The only thing they need to "educate" people about is to stop listening to the lies from the Government, Banks, Financial Institutions, Car Dealers, Real Estate Agents etc etc ...

And the most simple rule of all for them to understand ... if you can't afford it, don't get it.

But I know that last one will fall on deaf ears as those in power "want" people indebted to them.

Financial institutions all over the world have done similar things. You only have to look to see the effects of it every day. What is really being proposed appears to be an additional subject in schools, colleges and universities.

If that can reduce individual debt then it has to be a good thing.

[Srikcir]

Lesson 1.

You must pay borrowed money back.

Lesson 2.

There will be interest that you will not be able to afford.

Lesson 3.

Do not borrow money.

SAVE! !

And from Prayut:

Lesson 4.

The government will give you low interest loans requiring no collateral to pay off high interest loans.

Edited April 30, 2015 by Srikcir

[trogers]

Financial institutions should be required to consider the total debt profile of a borrower before extending loans or credit cards.

A law should be made to ensure all credit and debt data of borrowers be kept and updated by a central body. Loans outside the system should be considered void and uncollectable.

[greenchair]

Lesson 1.

You must pay borrowed money back.

Lesson 2.

There will be interest that you will not be able to afford.

Lesson 3.

Do not borrow money.

SAVE! !

And from Prayut:

Lesson 4.

The government will give you low interest loans requiring no collateral to pay off high interest loans.

Lesson 6.

And every few years the government will delete all of loans that you cannot pay.

And give you a new loan.

[Cake Monster]

No amount of " financial education ", whether that be self taught, or compulsury, will stop desperate people from borrowing money from sources that are " off the radar ".

Instead of trying to educate these people, make the Gold Shop loans illegal, and rid Thai society of the scum known as " Loan Sharks " that pray on the less affluent people.

That would be Government money better spent, but of course there is that little hurdle called corruption to overcome.