The financial resilience of Israelis declined in 2023 for the third year running, according to an index compiled by financial literacy nonprofit Paamonim, published this week.
The index produces a score from 1 to 100 and is based on a survey conducted by the organization among more than 1,000 households from all sectors in Israel. Israelis' score in 2023 was 63.9 compared to 65.7 and 66.8 in 2022 and 2021, respectively.
Parameters on which the index was based included: the ability of a household to handle a shock to the household’s income, the ability of a household to handle a shock to the household's spending, household monthly savings, feelings of financial proficiency, and the ability to cover monthly expenses.
Most Israelis have overdrawn bank accounts
The lower score was primarily due to worsening in three parameters, the index showed. More Israelis had bank accounts that were constantly overdrawn (or “in minus”) in 2023, 24% of those polled compared to 20% in 2022.More Israelis were not saving for the future, 27% of those polled in 2023 compared to 21% in 2022.
Finally, more Israelis reported difficulty in handling a shock to their expenses, 40% of those polled in 2023 compared to 36% in 2022.More Israelis reported foregoing paying for necessities, with 47% not getting dental treatment (compared to 31% in 2022), 35% not going to the doctor (compared to 25% in 2022) and 31% not purchasing medicine (compared to 24% in 2022).Paamonim CEO Zvika Goldberg called for a national plan to be implemented to address Israelis' financial conduct. The index showed a negative trend that demonstrates that more and more households are “financially fragile and don’t enjoy financial stability and security,” said Goldberg.“Along with the normal yearly index, we paid special attention to checking the economic impacts of the war on Israeli households,” said Goldberg, adding that the results disclose that the households have been negatively impacted.