More Thais getting smarter with their money, BOT survey shows
A survey on the Thai population’s financial skills last year shows that more people are now either saving or investing their money.
The Bank of Thailand (BOT) said on Thursday that 71 per cent of Thais show their financial skills have improved compared to 66.2 per cent in 2018.
The central bank collaborated with the National Statistical Office to conduct the survey under the framework set by the Organisation for Economic Cooperation and Development (OECD). This was the eighth such survey and focused on a sample group of 11,901 households spread across the country.
The overview of the survey results conducted last year showed that Thai people improved their financial skills level at 71.0 per cent, higher than the previous survey in 2018 at 66.2 per cent. The result is also higher than the latest OECD survey result in 2020, which averaged at 60.5 per cent.
However, when considering the components of financial skills in all three areas, it was found that Thai people have improved in every aspect.
Financial literacy stood at 62.9 per cent (55.7 per cent in 2018), improving in all topics. But there are also topics that can be further developed and promoted, including calculating interest on compound deposits, investment risk diversification and the value of money over time.
In terms of financial behavior, it was at 71.1 per cent (67.8 per cent in 2018), with the topic of money allocation before spending and studying information from appropriate sources having a high score.
The financial attitude was at 82.0 per cent (78.0 per cent in 2018), which was continually improving.
However, the topic of money management to avoid the problem of insufficient funds showed a lower score than in 2018.
In particular, the attitudes towards long-term planning for the future were the most evolving topic from 2018. Income instability from the Covid-19 epidemic crisis is likely to make people more aware of the importance of future events preparation.
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When looking at the level of financial skills by age dimension, it was found that all ages showed improvement in all aspects, which is consistent with the overall picture of the country. The Gen Y people (born in 1981–1996) had the best level of financial skills compared to other ages, followed by Gen X (born in 1965–1980), Gen Z (born in 1997–2012) and Gen Baby Boomer (born in 1955–1964), respectively.
