(photo credit: Bloomberg)
Forty-five percent of Israelis over the age of 20 cannot make ends meet, the
Central Bureau of Statistics reported on Monday.
Its Financial Literacy
Survey found that Israelis’ knowledge about calculating interest rates,
inflation, and investment yields versus risk is below the global
Eighty percent of respondents said that they compare prices
before buying goods, because of the cost of living and rise in prices since the
social protest in the summer of 2011. Of respondents, 62% said that they were
more savers than spenders.
The Financial Literacy Survey was jointly
conducted by the Central Bureau of Statistics, Bank of Israel, Finance Ministry,
and the National Economics Council in January- May 2012 among a representative
sample of 1,200 people over the age of 20.
The government uses the survey
for setting financial education policy, in line with OECD
Financial literacy is defined as the ability to read,
analyze, understand, and discuss financial and economic matters that affect an
Issues include the ability to assess financial
opportunities, the proper use of money, planning for the future on the basis of
the present, and responding wisely to economic changes.
50% said that they have a pension plan, 33% have a provident fund or advanced
training fund, 22% have managers’ insurance, 67% have health or nursing
insurance, and 40% have structural insurance on their homes.
and investment, 57% of respondents said that they have a savings plan or bank
deposit, 14% said that they invest in stocks or bonds, and 8% said that they
have a mutual fund or exchange traded fund (ETF).
Forty-four percent of
respondents said that they are not prepared to take financial risks, and 40%
said that they prefer long-term savings over current expenditures.
couples, 33% of women respondents said that their husbands make financial
decisions, compared with just 9% of men respondents who said that their wives
make financial decisions.
On financial matters, 59% of respondents said
that they can calculate annual interest rates, 29% said that they can calculate
compound interest rates, 65% said that they understand the effect of inflation
on the cost of living, and 48% said that they can link investments and yields.