Over 30,000 shekels: The financial trap threatening families in Israel

The dense convergence of back-to-school expenses, holiday meals during the Tishrei holidays, and the soaring accommodation prices during the Sukkot holiday creates a deep budget hole for families in Israel. A comprehensive analysis by the research department at the 'Bihad Finansim' group shows that an average middle-class family is required to absorb an excess cash flow gap of 19,500 to 31,500 shekels beyond its current monthly income. This period, occurring when the family's financial resources are already depleted from the summer, creates a destructive economic domino effect.

The expense map consists of three main waves spanning from mid-August to October. The first wave includes school supplies amounting to 3,500 to 5,500 shekels, which in most cases is paid in cash or short-term installments. The second wave adds a cash flow burden of 5,000 to 7,500 shekels for holiday shopping, clothing, and gifts. The third and heaviest wave occurs during the intermediate days of Sukkot, with vacation and leisure expenses reaching up to 18,500 shekels.

Upon analyzing the data, it became clear that most of the public manages this period as an emergency event and finances it with expensive credit. Or Lusky, the group's CEO, criticized the financial conduct and explained:

"The economic tragedy is that no item in this chain is a surprise. The back-to-school dates, peak season prices during Sukkot, and the dates of the Tishrei holidays have always been fixed on the calendar."

Lusky added: "Instead of trying to 'put out fires' with high interest rates, it is important to build a model of budget allocation in advance."

The accumulated cash flow burden of the late summer and holiday months puts many families at risk of chronic debt and enslaves the economic flow deep into the next year. It remains to be seen whether consumers will adopt early and conscious budget planning to dismantle the financial trap before it is created.