Anita* is a student at Prathandongrungwittayakarn School in Kanchanaburi who participated in UOB Money 101: Teen Edition -- a financial literacy programme launched by UOB Thailand in collaboration with the Thailand Collaboration for Education (TCFE) in 2021. After completing the six-hour programme, she established a food delivery business targeting teachers and students.
Chayanan Pangjarojn, a social studies teacher at Prathandongrungwittayakarn School who taught UOB Money 101: Teen Edition to his students, mentioned that Anita showed great enthusiasm in learning about financial affairs. She also achieved the highest score on the final test created by UOB.
"Anita attended UOB Money 101: Teen Edition in the first year that it was established. She applied the knowledge she gained from the programme such as budgeting, accounting and distribution channels in her delivery business. It is a simple business which allowed her to earn income at a young age," said Chayanan.
UOB Money 101: Teen Edition aims to equip underprivileged students across the country with financial knowledge and skills to prepare them for the future. Created by the renowned money coach Jakkapong Mespan, UOB Money 101 features topics such as basic financial knowledge, saving, spending, earning and investment.
UOB Money 101: Teen Edition is an excellent financial literacy programme designed for Matthayom students and adults. However, Asst Prof Roongkiat Ratanabanchuen, lecturer at the Department of Banking and Finance, Chulalongkorn Business School, believes that financial literacy should be learned in kindergarten and parents should teach children about it. He said that financial literacy is crucial because it is a basic foundation for life. People of all ages and income levels must have basic knowledge of financial literacy in order to survive in society.
"If people lack financial literacy knowledge, they will have no financial discipline and struggle to manage their earnings and expenses. Without understanding what they should and should not spend on, they may accumulate debt and experience financial instability. They may also not know how to effectively manage and resolve their debts. This can lead to household debt issues and have an impact on the country's economy," said Asst Prof Roongkiat.
One surprising piece of advice from Roongkiat is that people should not feel bad about being in debt, but their loans should generate income or be invested in a business.
"For example, a YouTuber may spend a lot of money on luxurious brand name clothes and accessories, but they utilise these items in their videos, which are a source of income," he explained.
Roongkiat suggests that children should learn financial literacy starting from the age of three or in kindergarten. The lecturer explained that at this age, children should learn through activities such as playing jackstones or counting items to understand numbers and discipline.
"The basic knowledge of financial discipline is teaching children to be patient. Children can be less materialistic if they know how to control their desire. Hence, parents should not fulfil their children's immediate desires when they ask for something. When children have to wait, it is no different from saving money because they have to put their desires on hold. They keep saving money until they reach their goal," said Roongkiat.
Roongkiat suggests that parents should explain the source of their income to their children when they are in kindergarten. Therefore, children will never misunderstand they can withdraw money from ATMs, mobile banking apps and debit cards without limit. Parents also should explain that using a credit card means they have to pay later.
At Matthayom Suksa, Roongkiat recommends that parents increase their children's allowance from daily to weekly, or weekly to monthly, so they can learn how to budget spending. Parents can also consider allowing children to have a supplementary credit card with a limited amount or their own bank account with an appropriate amount of money linked to a mobile banking app. This way, parents can control their children's financial spending while enabling them to learn how to be responsible adults.
Saving money is one of the important topics in financial literacy. Roongkiat suggests that young people should split their earnings into three categories: expenses, savings and donations. The lecturer explained that donations should be included as a category because happiness has multiple dimensions. Children will experience happiness by helping others.
"Everything I advise is not difficult. It does not require a university lecturer like me to teach children. Parents should not expect financial literacy to be taught in schools. It is something that parents can do themselves," said Roongkiat.
Roongkiat's children are fortunate to have a financial expert like their father who taught them financial literacy. Meanwhile, Chayanan, a teacher at Prathandongrungwittayakarn School, started planning his retirement a couple of years ago and discovered that the sooner people have knowledge of financial literacy, the more effectively they can plan their future. Therefore, he wanted his students to learn about financial literacy from a young age, so that they could cultivate the right attitude and mindset about money.
"UOB Money 101 is an excellent programme because it focuses on changing attitudes about financial literacy making young participants realise that it is not just knowledge for retired people. It is relevant to people of all ages. If students plan their future early, they will achieve better financial stability," said Chayanan.
At Prathandongrungwittayakarn School, only 40 select students from the class will have the opportunity to participate in UOB Money 101. Chayanan explained that he selected students from this class because they showed interest in financial literacy and are academically inclined.
Although UOB Money 101 is designed for Matthayom Suksa students, some parts of the content are difficult to understand because students are not familiar with financial terminologies such as real estate investment, futures trading and equity instruments.
"Due to the students' lack of fundamental knowledge in finance, I had to provide examples and case studies to help them understand the content. They were particularly interested in the topics of saving and expenses as they could relate to them. One of the topics covered was T.Harv Eker's six-jar money management system which teaches them to separate their savings into six accounts or piggy banks. The categories for the six accounts are the following -- necessities, financial freedom, education, play, giving and long-term savings for spending."
"Students were also interested in the case of Anne Scheiber who initially invested US$5,000 in the stock market at the age of 51. By the time she was 101 years old, her stocks were valued at $22 million. Scheiber bought stocks and held onto them for the long term. This helped students understand that they have to be patient," he explained.
After the programme, Chayanan discovered that many students had a better understanding of finance and were able to apply the knowledge that they gained from the programme to their lives.
"Apart from Anita who successfully set up her delivery food business, many students have changed their financial behaviours such as reducing their expenses and saving money for specific purchases. Some students discussed investment, but I recommended simple investments. One student mentioned that their family members like to purchase lottery tickets. I advised him to purchase saving lotteries from banks instead," said Chayanan.
*Not her real name.
