New Financial Calculator Assesses Israeli Families' Economic Resilience and Asset Strength

A new financial calculator launched in Israel offers families a comprehensive assessment of their economic stability, measuring their resilience to financial shocks, asset value, and savings reserves. The tool evaluates seven key parameters including monthly surplus, liquid savings covering living expenses, debt-to-income ratio, job stability, pension savings, and notably, real estate value, which carries significant weight as the primary asset for most Israeli families.

The calculator assigns a score from 0 to 100 reflecting overall financial health. For example, a family earning a combined 22,000 shekels monthly, with expenses of 17,000 shekels, 800,000 shekels in debt, 150,000 shekels in savings, and a home valued at 2.2 million shekels, receives a score of about 68, indicating stability but limited financial buffer. Reducing expenses and increasing liquid savings can raise this score substantially. Conversely, a young couple renting with an income of 18,000 shekels, expenses of 15,000 shekels, and only 60,000 shekels in savings scores around 38, reflecting vulnerability due to lack of equity and savings.

The calculator highlights the critical role of net equity (assets minus liabilities) in financial security. Families with net equity exceeding 3 million shekels fare better even with negative cash flow, while those with over 6 million shekels in equity can achieve a perfect score of 100, benefiting from financial flexibility such as loans against real estate and pension funds.

This tool provides an initial financial snapshot based on average assumptions like fixed and variable mortgage interest rates and typical investment diversification. It is not a tax calculator, does not account for extraordinary events, and is not a substitute for professional financial advice. Factors such as expected inheritance, housing subsidies, or salary increases can significantly alter the financial outlook.

The calculator aims to help Israeli families understand their economic standing and identify areas for improvement to enhance financial security and peace of mind.