For the fifth consecutive year, we have measured the economic resilience of households in Israel. In 2025, Israeli households continued to navigate a complex economic and security reality, whose effects are clearly evident. We continue to face a rising cost of living, an interest-rate environment that has moderated but remains high, disruptions to livelihoods, widespread and ongoing reserve-duty mobilization, and a war that continues to affect life in Israel as a whole, while destabilizing the lives of residents in the north in particular.
And yet, after a period of profound upheaval, this year we identify an important shift: the downward trend consistently reflected in the Paamonim Index data during its first four years has been halted in the fifth year. It is important to say this clearly: halting a decline is better than continued decline, but halting a decline is not recovery.
The data on the one hand, points to early signs of improvement in certain indicators; on the other hand, the economic resilience of households remains low, vulnerable, and fragile. Many families are still struggling to make ends meet, save for the future, and cope with unexpected expenses.
One of the most significant findings this year concerns the widening gaps within Israeli society. Young adults show improvement in the indicators, yet they still face a worrying reality of debt, routinely living in overdraft, and giving up basic needs. At the same time, the middle-aged population – the economic backbone of society – continues to be worn down under an ever-growing burden. Geographic disparities as well, and particularly the data on households in the north, underscore the close connection between the security reality and economic resilience.
We are witnessing deep changes in patterns of financial behavior: the significant influence of the digital consumer world, widespread reliance on credit for day-to-day consumption, and a decline in financial discipline. These trends weaken households’ ability to cope with crises and sharpen the need for action.
Alongside the challenges, it is both possible and right to recognize hopeful solutions. According to the annual research data, families whose starting point was difficult but who received guidance or financial rehabilitation from Paamonim achieved excellent results – not only relative to their own starting point, but also compared with the general population. Practical financial knowledge and supportive financial guidance prove, time and again, to be effective tools for change. Families that undergo Paamonim’s guidance process manage to strengthen their financial control and attain stability, even under complex conditions.
The Fifth Annual Paamonim Index is not merely a snapshot of reality; it is a call to action. Strengthening the economic resilience of households is a vital national interest of the highest order. It requires a combined effort by public policy, the education system, the financial sector, and civil society. The Minister of Education’s decision to introduce financial education as a mandatory subject is an important step in the right direction. We are proud to have been selected to train teachers in financial education in general, and in AI-based financial education in particular.
In a year in which we learned just how quickly reality can change, we bear the responsibility to build long-term capacity: not merely to survive the current crisis, but to be prepared for the next one, and even to prevent it.
This year, we chose to focus in greater depth on the economic lives of young women and men. Some received full, in-depth, and long-term financial guidance, while others received what we at Paamonim call “intake and referral”: the work of assessing each case and directing families to the right and most suitable response among the range of services we offer. This is volunteer work that demands extensive life experience, wisdom, and love of humanity.
Thank you to Paamonim’s volunteers, staff, partners, and supporters for your commitment, professionalism, generosity, and shared journey.
Paamonim will continue working to reduce gaps and promote equality, and will do everything in its power to provide every family in Israel with the tools, knowledge, and confidence needed to build a more stable and secure economic future.
I wish us all good news, calm and security, and an experience that inspires both thought and action.
Zvika Goldberg
CEO, Paamonim
