Zvika Goldberg, CEO of Paamonim
The year 2024 has been overshadowed by significant financial and social challenges for the Israeli households. The implications of the Iron Swords war, the large-scale mobilization of reserve forces, the evacuation from the north and south, the rising cost of living, and the broader macroeconomic impacts have created a complex and far reaching economic reality.
Paamonim’s annual report presents a comprehensive overview of the economic condition of the Israeli public, examining recent trends and the effects of current events on the financial resilience of households. This is the fourth year in which we have assessed household economic resilience. While the first three years showed a consistent but moderate decline, this year’s data reveals a sharp drop in economic resilience – a decline felt across all layers of society.
We are witnessing a significant blow to families that were evacuated from their homes, as well as to what is still called “the middle class”. In fact, the concept of a middle class is shifting. New groups that previously did not require financial assistance are now facing worsening monthly deficits, reduced ability to save, and growing economic uncertainty. Whereas in the past, financial struggles primarily affected low-income households, this year we see these difficulties extending to families with higher incomes, who now must adapt to the rising cost of living and the erosion of their long-term financial stability.
Yet, the report also offers hope by highlighting possible solutions. The findings show that practical financial knowledge, economic guidance, and proper planning can be powerful tools for improving household resilience. Families that participated in financial mentoring with Paamonim reported a significant increase in their confidence in managing household finances, even under challenging conditions.
Financial mentoring is not merely about balancing income and expenses. It is a holistic process that centers on the individual and the family, enabling a reassessment of priorities and values, and helping reshape the family’s financial reality – according to their choices, but with an understanding of the financial implications.
Households in Israel are facing a difficult reality, but they, and we as a society, have the capacity to change and improve this reality. We must strive to create systemic policies that address economic shifts, while expanding access to financial knowledge and tools, and encouraging every family to develop a strategy for a secure financial future.
Together we will win, even in the face of economic challenges.
