Although parents have more time once school starts as their children attend classes, they face heavier financial burdens. They must prepare enough money to cover all expenses, which often double when there are multiple children. Some families need tens of thousands to even hundreds of thousands of baht.
It's not just about earning money to send children to school, but also about supporting them socially and helping them live happily.
The latest survey by the Center for Economic and Business Forecasting, University of the Thai Chamber of Commerce, estimates that in 2026, back-to-school spending will reach 66 billion baht, the highest in 17 years since 2010, with an average expense of 29,930 baht depending on the type of school, such as
Thanawat Phonvichai, President and Advisory Chairman of the Center for Economic and Business Forecasting, University of the Thai Chamber of Commerce, shared insights from the latest survey showing that Thai people highly value their children’s education, willing to pay more for extra tutoring while cutting costs on travel, home food, or personal expenses instead.
Moreover, as back-to-school expenses come as a large lump sum, many families struggle to keep up, resorting to borrowing from formal and informal sources, pawning assets, or using cash advance cards and paying installments later. Many parents sacrifice their own quality of life to secure their children’s future, hoping for a better life for them in the long run.
Child-related expenses tend to rise, but income may not keep pace. Therefore, parents should upgrade their skills as "financial coaches" to manage household spending and be good role models for their children. This upgrade is not just financial knowledge but also behavioral adjustments, which are key to improving finances. A good start is by
"tracking income and expenses."
The hardest part is not recording but maintaining consistency. Keeping accounts helps us understand the family’s true financial status. Monthly expenses should be clearly categorized, such as food, travel, utilities, and debt payments.
Then prioritize or create a spending calendar to identify months with large expenses, for example, public schools typically require tuition payments in May and November each year.
"Plan for debt management."
Debt or loans are not always bad; for instance, if you want a house but lack a large lump sum, you need a loan. The challenge is how to manage debt payments comfortably and stress-free. To ease life, list all debts with details including total balance, installment amount (excluding minimum credit card payments), repayment period, and annual interest rate.
If total debt burden is under 40% of income, financial management is good; but if it rises to 50-70%, it becomes a critical point requiring urgent debt clearance planning.
For high-interest debt, like credit cards with up to 16% annual interest, plan to pay off this first through extra payments, restructuring to reduce interest, or consolidating debts with cheaper home loans.
"Save an emergency fund and use insurance to mitigate risks."
After the first two steps, you will see your overall financial picture, but the most important is an emergency fund of at least 3-6 months’ expenses kept in accessible accounts like savings accounts. This fund helps you breathe easier if unexpected events occur.
Next, use insurance to cover specific risks in your life, such as accident, car, health, or life insurance. Choose coverage amounts and terms suitable for you. The key is to consider whether you can afford the premiums long-term; having high coverage but failing to pay premiums and losing the policy is counterproductive.
"Plan investments."
Even with debt, you can plan investments, which can be a financial nest egg for your children’s future. Start by allocating a portion of money monthly, whether a few hundred or thousand baht, adjusting to what you can afford. Focus on long-term growth using strategies like Dollar-Cost Averaging (DCA), investing gradually to grow the funds.
Of course, invest according to your real risk tolerance, only in things you understand, avoid chasing trends, and review your portfolio every 6 to 12 months to stay informed.
Information referenced from the University of the Thai Chamber of Commerce, Thai Financial Planners Association, and the Bank of Thailand.
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