Home Business The Bank of Thailand reveals that Covid has caused 62% of Thai people to experience money shock.

The Bank of Thailand reveals that Covid has caused 62% of Thai people to experience money shock.

by news dir

The Bank of Thailand has released a survey on Thai financial skills in 2020, showing that the score has improved to 71.0%, higher than the 66.2% in 2018, revealing that under Covid-19 pressure on households to become more fragile Income smashed – some savings bumper pointed out that only 38% of Thais can survive the shock. Ready to continue to provide financial knowledge for more than 17.5 million people

On October 28, 2021, Ms. Nawaporn Maharakkhaka, Assistant Governor Enterprise Risk Management Division The Bank of Thailand (BOT) said it saw the importance of encouraging people to have good financial skills. This will give them immunity to be able to take care of themselves even when faced with challenges such as high levels of household debt. Stepping into an aging society especially the situation of the epidemic of COVID-19 which affects the public sector and business in a wide area

In 2020, the BOT, together with the National Statistical Office, conducted a survey on the financial skill level of Thai people according to the framework of The Organization for Economic Co-operation and Development (OECD) for the 8th time covering sample groups in all provinces across the country. A total of 11,901 households were used as information for financial skills development of Thai people. and build good financial immunity

Overall, the 2020 Financial Skills Survey results show that Thai people have improved their financial skills at 71.0%, 66.2% higher than the previous survey in 2018 and above the skills survey average. The OECD’s latest financials in 2020 are 60.5%.

However, what is worrying and noteworthy is that households are increasingly financially vulnerable. As reflected by the proportion of survey respondents with decent financial management, only 38% had a reserve of more than three months if they had to take a sudden break from work. Or can survive in a state of shock. of which more than 62% were unable to survive. reflecting a fragile financial position This was partly due to the decline in revenue from the impact of COVID-19. and people do not have enough savings as well as borrowing money from many channels with poor management This allows people to survive from the shortfall of money. In addition, the Bank of Thailand has a survey during the Covid-19 epidemic.

In addition, 1 in 3 people, or about 33%, do not know how much savings they have. which is a group that is concerned as well While less than 1 in 5 Thais, or approximately 17.8%, have a retirement savings plan and are able to do so, and up to 48.2% that have started but have not yet achieved it. And 15.3% of Thai people do not plan to save for retirement.

Ms. Nawaporn said that when considering the components of the three aspects of financial skills, namely 1. Financial literacy. 2. Financial behavior and 3. Financial attitude It was found that Thai people have improved in all aspects. Financial literacy was 62.9%, an increase from 55.7% in 2018, improving in all topics, but there are still topics that can be further developed and promoted, such as calculating compound interest. investment risk diversification and the value of money over time

Meanwhile, the financial behavior aspect was at 71.1%, up from 67.8% in 2018. The topic of money allocation before spending and studying data from appropriate sources has a very high score. However, the topic of money management to avoid money problems is not. When used, there is a reduced score.

Financial attitudes were at 82.0%, up from 78.0% in 2018, continually improving. In particular, attitudes towards long-term planning for the future were the most evolving topic from 2018. Income instability from the COVID-19 epidemic crisis should contribute to making people more aware of the importance of being prepared for future events

“When looking at the level of financial skills by age dimension, it was found that all ages showed improvement in all aspects consistent with the overall picture of the country. and high financial behavior But they had relatively few scores on financial attitudes, followed by Gen X, with financial attitudes being the highest scoring topic among other ages. Gen Z had relatively low financial skills scores.

It had the lowest scores for financial behavior and attitudes across all ages, but showed significant improvement in financial skill levels compared to 2018 scores, particularly financial literacy and behavior, and Gen Baby Boomer and above had skills scores. the least financially, with lower literacy scores than other age groups.”

Ms. Nawaporn said that for the survey of attitudes and saving behaviors. It found that the proportion of people with savings in the sample increased to 74.7% in 2020 from 72.0% in 2018, and most people are aware of saving for emergencies. and saving for retirement which the epidemic of COVID-19 This seems to be the reason why people are more aware of the need to keep reserves. The main motivation for saving comes from having a clear goal or plan for spending money in the future, but only 19.7% allocate money for savings. Before spending money, it may be a reason for not achieving savings goals.

Since 2012, the Bank of Thailand has promoted financial literacy to more than 17.5 million people through various channels by promoting broad knowledge through the online platform Facebook of Prof. Khong 1213 and the network. Allies such as VHVs, as well as local media with an easy-to-understand format consistent with life events The topic focuses on issues that are urgent financial problems such as debt management. and issues that should be developed/weaknesses such as Digital Literacy, financial risks

In addition, encourage continuous savings and financial planning. with sustainable good financial behavior Through the implementation of 2 main projects: (1) Project Fin. Dee We Can Do!!! for vocational students which together with the Office of Vocational Education Commission (VEC) organized a contest based on the concept “Contributions of vocational people for vocational people” is the 3rd year with activities to promote financial literacy to stimulate thinking about finance. to exchange, learn and inspire

and (2) the Fin. Dee Happy Life project!!! for working age group To representatives of the agency (Fin. Trainer) to expand the results for employees in the agency. in the form of educating, organizing activities and being a mentor throughout the project

by encouraging people to be ready to deal with all situations (Financial resilience), for example, developing a manual “Knowing about money Ready to face every crisis” published on the website of Prof. 1213 and passed on knowledge to workers at risk affected by the Covid through alliance organizations of various private business associations in the form of infographics and video clips. Online training courses, articles, the BOT has given importance to and continues to operate in order to cultivate and strengthen financial immunity for the people, which is the cornerstone of a sustainable economy.

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