In recent years, household debt in Thailand has escalated alarmingly. Many Thais still lack essential financial understanding, such as personal financial planning, debt management, interest rates, the role of the National Credit Bureau, and the Consumer Protection in Motor Vehicle Accidents Act. This has trapped many people in a cycle of debt. Recognizing the need for financial education, Ngern Tidlor is committed to advancing its efforts to ensure that Thais understand the importance of financial knowledge and prudent financial management. This initiative aims to build a stable foundation for life and help individuals escape debt sustainably.
Financial Literacy: A Crucial Tool for Economic Stability
The Importance of Financial Literacy
Financial literacy encompasses a wide range of skills and knowledge that allows individuals to make informed and effective decisions with their financial resources. Understanding financial literacy is the first step towards achieving economic stability and independence.
Current State of Financial Education in Thailand
Despite various efforts, financial education in Thailand remains inadequate, contributing to high levels of household debt. Many citizens are unaware of basic financial concepts, leading to poor financial decisions and vulnerability to financial crises.
Pioneering Financial Education with the FIN-ED Project
Origins of the FIN-ED Project
Over a decade ago, Ngern Tidlor became the first private company to launch the "Financial Education Program" or FIN-ED project. Initially designed for merchants and factory workers, the program has expanded to include Ngern Tidlor employees. Collaborating with nearly a thousand volunteers from branches nationwide, the initiative now reaches over 224 communities in 43 provinces, striving to improve the financial lives of all Thais.
Goals and Objectives
The primary goal of the FIN-ED project is to enhance financial literacy among Thais, equipping them with the knowledge and skills to manage their finances effectively. This involves understanding personal financial planning, debt management, interest rates, and more.
Financial Clinic: Promoting Robust Financial Health Among NTLers
Employee Financial Wellness Programs
Every employee is a vital resource at Ngern Tidlor. We focus on developing robust financial health for our employees by providing tailored financial knowledge from day one. Through the "Financial Happiness Program" and the "Financial Clinic" conducted twice a year, FIN-ED mentors trained under the Happy Money program by SET offer closely and sincere guidance.
Impact of the Financial Clinic
No matter what financial challenges our employees face, whether unmanageable debt or planning for a secure financial future, our 'FIN-ED mentors' are ready to listen and provide understanding, non-judgmental advice. We believe everyone has the potential to improve their financial lives with the right knowledge and guidance. By empowering our employees with the correct financial tools and support, they can escape debt and regain financial stability. Our mentors have assisted over 32 employees, reducing their debt-to-income ratio (DTI) from 68% to 46% per month and increasing their savings by 12% within four months, demonstrating the impact of dedicated financial education. This has resulted in a reduction of employee debt by 3.2 million baht, clearly indicating improved financial health due to our committed efforts.
Empowering the New Generation with Financial Knowledge
Youth Financial Education Programs
Ngern Tidlor believes proper financial knowledge aids in planning expenditures, saving, investing, and avoiding debt. To equip the youth with essential financial skills, Ngern Tidlor extends financial education to schools and universities.
Addressing Debt Among First-Jobbers
Surveys of new employees under 26 years old categorized as First-Jobbers showed that 73% already had debt. This alarming statistic prompted us to extend basic financial education to schools and universities to avert future financial problems. Initiatives have already begun at two educational institutions: Thammajarinee School and Rajamangala University of Technology Phra Nakhon.
Nationwide Expansion of Financial Education
Success Stories from Communities
Ngern Tidlor also broadens the FIN-ED project across the nation. Sai Ngam Village in Prachin Buri Province is one of the success stories. The feedback from Sai Ngam Village residents highlights the transformative power of financial knowledge. Once a community plagued by debt, they have now discovered "financial happiness" and achieved self-sustained stability.
After joining the program, many villagers resolved their debt issues and increased their savings. This clearly showcases that financial literacy and promoting savings are crucial tools for resolving debts and promoting financial stability. Additionally, it helps restore happiness to their lives.
Future Expansion Plans
Their success motivates us to extend the reach of the project to help people escape debt and improve their quality of life, including building a Thai society with a strong financial foundation, ensuring that everyone has the opportunity to achieve financial stability and a better quality of life.
Expanding Cooperation for Continuous Progress
Building a Network of Financial Mentors
The FIN-ED team remains committed to expanding collaboration and building a network of financial mentors. We invite companies and organizations to participate in training and practice sessions, disseminating financial knowledge across communities. Partnerships with Chookiat Leasing Company Limited, Ngern Turbo Company Limited, members of the Vehicle Title Loan Association (VTLA), government agencies, nonprofits like the Stop Gambling Foundation, and private sector organizations aim to enhance financial awareness and understanding among all societal levels.
Ongoing Efforts and Challenges
Despite our successes, there is still much work to be done. We strive to enable every Thai to access financial knowledge equitably, moving towards a society where people have a good quality of life based on a strong financial foundation.
Conclusion
Ngern Tidlor's commitment to enhancing financial literacy and education is a testament to their dedication to building a thriving society. Through comprehensive programs like the FIN-ED project, Financial Clinic, and youth education initiatives, Ngern Tidlor is making significant strides in improving the financial health of individuals and communities across Thailand. As they continue to expand their efforts and collaborate with various organizations, the vision of a financially literate and stable society becomes increasingly attainable.