Thammasat Drives Financial Literacy

Thailand's household debt reached 16.2 trillion baht (87.4% of GDP) by Q1 2025, exceeding the 80% international threshold. A concerning trend shows 1 in 2 Gen Z individuals are in debt, with over 1 in 4 having NPLs, the highest rate among generations, due to social media influence and easy credit access. This silent threat affects all ages, including elderly individuals with an average debt of over 400,000 Baht and younger generations trapped in overspending, undermining quality of life and the Thai economy.

Assoc. Prof. Dr. Dumrong Adunyarittikun, Vice Rector for Academic Affairs at Thammasat University, stated that the current situation reflects a fragile economic structure and has become a 'debt trap' for households and the overall economic stability of the country. More than two-thirds of total household debt is consumer debt that does not generate income, such as credit card debt and personal loans, while investment debt in appreciating assets, such as homes or businesses, accounts for only 4%. This has led to a debt burden that perpetuates a cycle diminishing purchasing power and reducing households' ability to save.

Thammasat University's "Financial Literacy" curriculum aims to equip all graduates by 2027 with financial and investment knowledge before they enter the workforce. The curriculum covers financial planning, saving, taxes, debt laws, and modern assets like digital currencies. It also addresses behavioral economics to help students avoid digital-age financial traps like "must-have" items or 0% installment plans. Collaborations with financial institutions offer elective investment courses, providing both theoretical and practical experience to foster stable financial attitudes.

Courses offered include Financial Knowledge for Individuals (SET), an E-Learning course on personal financial planning, income/expense management, savings, and basic investments; Comprehensive Investment (SET), an E-Learning course introducing various investment instruments (stocks, bonds, mutual funds) and fostering sustainable investment; Investment in the Stock Market (SET), an E-Learning course providing in-depth exploration of stock investments, mutual funds, Derivative Warrants (DW), and practical analysis using the Stock Exchange's Streaming program; Blockchain Innovation and Cryptocurrency (Gulf Binance), the newest course, available Online and Onsite, covering blockchain basics to cryptocurrency and digital asset investment; and Professional Investment (Bangkok Bank), an onsite course focusing on in-depth investment in various asset types, with workshops and lectures from financial experts.

Assoc. Prof. Dr. Dumrong emphasizes that strong financial citizens possess investment skills, financial discipline, planning abilities, and the capacity to handle economic uncertainties, thereby avoiding informal debt. This foundation leads to national economic stability and sustainability, reducing default rates, non-performing loans, and government subsidy burdens while increasing household savings, investments, and national competitiveness.

The "financial vaccine" of financial literacy is crucial for vulnerable groups like recent graduates, single parents, and the elderly to build financial immunity and avoid bad debt. Countries like Australia and Singapore demonstrate that integrating financial knowledge into basic education fosters saving discipline and reduces debt, a model Thailand can adopt.