Back-to-school spending up slightly on higher prices: survey
Back-to-school spending will inch up only 1.6 per cent to Bt48.04 billion, the slowest increase in six years, as both the economy and parents are mired in liquidity problems, according the University of the Thai Chamber of Commerce.
“The back-to-school period is an economic indicator. Although more spending will be seen this year, the small growth is not a good sign, as people are spending more not because they think the economy is improving, but mainly because of higher product prices,” Thanavath Phonvichai, director of the university’s Economic and Forecasting Centre, said yesterday.
Because of higher prices, most parents |making less than Bt20,000 a month are short |on funds to pay school fees and buy necessities and educational supplies, so they will have to |turn to loan sharks or pawnshops to get extra cash.
Back-to-school spending last year was Bt47.14 billion.
Based on a survey from May 4-8 on 1,236 parents of students from kindergarten to the first year of university, 35 per cent will have to spend more. They expect to pay an average of Bt7,254 per pupil for this new school term.
More than half of the parents who said they would have to spend more cited expensive goods, mainly student uniforms, footwear, textbooks and stationery, and high entrance fees.
Wachira Kuntaweethep, assistant director of the centre, said parents planned to purchase the same amount of goods and materials as last year, but they would have to fork out more because of higher prices.
About 56 per cent of respondents said they did not have enough money to pay school fees and purchase items for the new semester.
Parents who could not earn enough said they had to go to pawnshops, banks, underground lenders or relatives for a loan or use their credit cards.
The survey also found that parents want the government to improve the quality of education. They see that Thai schools will have different standards, and believe most schools are not yet ready for Asean integration.
