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The Effectiveness of Personal Financial Planning of Rubber Farmers in Thailand: Case Study of Suratthani Province

Author

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  • Arus Kongrungchok

    (Suratthani Rajabhat University)

Abstract

The primary objective of this study was to investigate factors that have left to personal financial weakness of Thai rubber farmers who have currently had defective financial position. Questionnaires (Cronbach's alpha = 0.914) were used for collecting data from 391 Thai rubber farmers in Suratthani province while 17 volunteered interviewees were interviewed through semi-structured interviews. Statistical techniques were employed to analyze the questionnaires while interview transcripts were analyzed through content analysis technique by using a phenomenological research approach. As a result of this study discovered that Thai rubber farmers have not concentrated on budget allocation of incomes to expenses in a same period while a private accounting has not been prepared to recognize cash inflow, cash outflow and cash balance, these situations have always left to ineffective personal financial planning in terms of a lack of savings for spending on emergency incidents; revenues? cessation from discontinuous rubber harvests; a lack of clear life target in the future; a lack of systemic investment; and an inappropriate planning of debt management. Furthermore, the results revealed that the budget allocation of revenues to expenditures, the preparation of private accounting, the savings for spending on emergency incidents, the systemic investment, the clarity of life target planning in the future, the revenues? cessation from discontinuous rubber harvests, and the systemically debt management have positively had the direct relationships to and influenced the effectiveness of personal financial planning of Thai rubber farmers at significant level of 0.01. The results of this study should be sent to Thai government and related parties with solving the fundamental poverty of Thai farmers especially Thai rubber farmers and could be then applied to other farmers if it has been possible. By the way, the knowledge and training (the workshop) should basically be given to those farmers by Thai government in terms of the basic personal financial knowledge as well.

Suggested Citation

  • Arus Kongrungchok, 2016. "The Effectiveness of Personal Financial Planning of Rubber Farmers in Thailand: Case Study of Suratthani Province," Proceedings of International Academic Conferences 4106729, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:4106729
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    References listed on IDEAS

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    Keywords

    Effectiveness; Personal Finance; Financial Planning; Thai Rubber Farmers.;
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