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One Baht a Day Saving Scheme

Community Financing - Changing the way we talk about about saving

Photo of My Ratarasarn
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The first microfinancial idea in Thailand started 20 years ago by Kru Chob Yodkeaw (Kru is a word we used to call teacher), head master of a school in a rural province of Thailand. He organised a community financing scheme which members have to contribute to regularly. All profits are benefit to members directly. Half of the interest earned were used to create a welfare fund, the other half were shared among the members as a dividend. 

However, how could we convince people who have very low income to join? Kru Chob create what is called 'One Bath Per Day Saving Scheme'. The main idea is about how we encourage poor people saving in a different way. For low-income people, asking them to 'SAVE' 30 bath (1 dollar) per month sound like a big deal because they would feel that they have to earn more to have that large amount of money. So instead, Kru Chob asked them to contribute 1 bath (3 penny) a day by 'REDUCING' their daily expense. And since they cannot do much with 1 bath, people don't feel that they have to loose much and easier for them to do.

Kru Chob first tried out his model at the school. The model was a big success and was expand to the the community. Now it wa adopted by over 40,000 communities all over the country and has over 10,000 million baht (300 million USD) saving all together. 

This program enhances the idea of sharing within community and help each other within the community. It also teach low-income resident to have discipline in saving and allow them to access healthcare and education which overall improve the wellness of the community as a whole.

If you want to find out more about the scheme, Pls folloew the link below.


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Photo of André Fernandes

I liked how practical it's to save a small amount of money that don't affect their low income. The questions that this idea brings are: What reward is relevant for the members to change a behaviour? How to benefit the members as they engage into saving program?

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