Thais earning 30,000 baht or less have little or no emergency fund
SCB survey shows most Thais in low- or middle-income bracket have practically no financial buffer for unforeseen crises
A recent survey by the SCB Economic Intelligence Centre (SCB EIC) shows that Thais earning below 30,000 baht per month have used up their savings, while those earning less than 15,000 baht have no savings at all.
The SCB EIC “Consumer Survey” reflected the economic outlook for 2024-2025 as of the second quarter of 2024.
The survey revealed that the current economic situation is taking a heavy toll on households and the working population. Rising living costs are not only straining the daily expenses of workers already struggling with liquidity, but also eroding funds they have put aside to cope with future emergencies.
As per the survey, more than 70% of consumers have less than three months of emergency savings, with the situation being particularly dire for those earning less than 30,000 baht per month. Most of those surveyed are working-age individuals between 31 and 40 years old employed by private companies or self-employed.
The data revealed by the survey is as follows:
Those earning less than 15,000 per month:
51% have no emergency savings
35% have emergency savings for 1-3 months
6% have emergency savings for 4-6 months
4% have emergency savings for 7-12 months
3% have emergency savings for 13-24 months
1% have emergency savings for more than 24 months
Those earning between 15,001 and 30,000 baht per month:
39% have no emergency savings
40% have emergency savings for 1-3 months
10% have emergency savings for 4-6 months
5% have emergency savings for 7-12 months
3% have emergency savings for 13-24 months
3% have emergency savings for more than 24 months
Those earning between 30,001 and 50,000 baht per month:
22% have no emergency savings
39% have emergency savings for 1-3 months
18% have emergency savings for 4-6 months
12% have emergency savings for 7-12 months
4% have emergency savings for 13-24 months
6% have emergency savings for more than 24 months
The generally recommended formula for building adequate emergency funds is average monthly earnings x 6. For instance, if Mr A earns an average of 25,000 baht per month, he should have emergency funds of at least 150,000 baht.
People with emergency funds below this benchmark risk incurring debt and potentially falling into a cycle of chronic debt when faced with unforeseen emergencies in the future. This financial instability underscores the urgent need for measures to address economic challenges facing low- and middle-income earners in Thailand.
