On the occasion of International Family Economy Day, we examined how financial conduct affects our family and how do we know whether we are managing ourselves financially correctly or whether there is something to improve?
The COVID-19 pandemic has caused many families in Israel to delve a little deeper than usual into the issue of family finances.
Some families switched to more supervised behavior compared to others who had to deal with a significant loss of income that required thorough budgetary discipline.
Whether as a result of the lockdowns imposed on citizens or due to the loss of income capacity, quite a few families in Israel have given up on a very long list of goods and services that they were used to consuming in their routine before the pandemic. Classes, clothing and footwear, fitness and health, and restaurants and entertainment have almost completely disappeared in some families and others have switched to cheaper alternatives such as internet purchases, jogging on the beach and gourmet home cooking.
But what is the hidden meaning behind the concessions and compromises that families in Israel make and carry out on a daily basis?
According to the dry data, when the family’s financial situation is unbalanced, it creates quite a few worries about the various payments and how they are handled. Coping with the situation often creates frustration and disappointment in quite a few families.
In parents, the situation sometimes manifests itself in stress and fears and tension arises between the couple and arguments begin to arise.
The International Federation of Family Economics (IFHE), which defined Family Economy Day every year on March 21, acts out of a desire to promote and deepen the knowledge of families around the world and to provide tools for responsible implementation of family economics in order to achieve a more stable and healthy life.
Are you doing it right?
Beyond a basic understanding of economic terms such as prime, comparing prices before significant purchases Proper financial conduct begins with understanding the family’s financial situation.
An accurate understanding of income and expenses will help to understand where the family stands in terms of its financial conduct
If an overdraft situation is no stranger to you, consider it a warning light.
How familiar are you with fuel, communications and food expenses?
Deepening the various expenses and understanding them certainly contributes to proper management, especially in families dealing with a budget.
Ask yourself if there is financial planning for future events? And how knowledgeable are you about your pension savings?
Do you know how you manage financially? Test yourself in our short test.