In the US, research indicates that women are taking the financial reins in more than 40% of households, handling money matters either exclusively or as the primary manager. Princeton University researchers discovered that these female-managed households demonstrate stronger long-term savings habits while accumulating fewer consumer debts. Complementary studies reveal women typically approach financial decisions with greater caution, prioritizing family security above all.

The European financial landscape shows striking regional differences. Scandinavian households embrace equality, with approximately 60% of couples sharing financial management responsibilities equally. This progressive approach contrasts sharply with southern European nations, where only 25-30% of women play significant roles in major financial decisions.

Israel falls somewhere in between, with studies from recent years pointing to women's growing financial influence. According to research conducted by the Israel Democracy Institute, women oversee day-to-day budgeting in 45% of Israeli households. However, when it comes to long-term financial planning and major investments, female participation drops noticeably to just 30%.

The evidence consistently demonstrates that higher female involvement in household financial management correlates with numerous positive outcomes: improved savings rates, greater family financial stability, and more equitable resource distribution among family members.

This isn't isolated to a single region – across all countries included in these studies, researchers have identified a clear upward trajectory in women's financial decision-making participation, suggesting a global shift in domestic financial dynamics.

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Amit reports the S&P 500 rose 0.50% and the Nasdaq Composite gained 1.13%, while the Dow Jones Industrial Average declined 0.20%. The Consumer Price Index came in at 2.8%, slightly below the expected 2.9%, with core CPI at 3.1%, also lower than anticipated.

"Shelter costs rose 0.3%, accounting for nearly half of the monthly CPI increase," Amit noted in his market recap. His analysis highlighted that "US egg prices surged 10.4% in February, with a notable 58.8% year-over-year increase," though "the cost for a dozen eggs has reduced by about $2 in the past week from an all time high at $8.25."

According to Amit, investors adjusted their expectations for interest rate cuts, with "probabilities for a rate cut at the FOMC meeting on March 19th is now 2% while probabilities for the May cut reduced from 40% to 27%."

In the technology sector, Amit reported that "Google unveiled Gemini Robotics, an AI model based on Gemini 2.0, designed to bring multimodal reasoning and embodied intelligence to robotics." He detailed that the company is "partnering with Apptronik, a humanoid robot startup, to develop advanced humanoid robots like Apollo."

Palantir announced "its sixth AIPCon, set for tomorrow," which will feature "new customer announcements, including Heineken, Walgreens, R1 RCM, RaceTrac, Ripcord, and others," according to Amit's analysis.

Amit also noted that "Goldman Sachs reduced its 2025 S&P 500 target to 6,200 from 6,500, citing weaker earnings, higher tariffs, and tighter conditions." The investment bank "lowered S&P 500 EPS to $262 from $268 and the valuation multiple to 20.6x from 21.5x."

Tesla's stock performance showed significant volatility, with Amit reporting the stock "hit a low of $215 on Monday and reversed over the past 2 days, up 10% today closing at $253." He observed that "Google Search interest for 'Buy a Tesla' has spiked to a multi-month high recently, with significant increases in Republican-leaning states like Nevada and Florida."

Mortgage rates continued their downward trend with Amit noting that "the average 30-year fixed-rate mortgage rate for conforming loans ($766,550 or less) in the US dropped to 6.67% for the week ending March 7, 2025, the lowest since early October."

The broader economic picture shows concerning trends, with Amit highlighting that "the US budget deficit ballooned to a record $1.15 trillion through the first five months of the fiscal year, while credit card debt surged to an all-time high of $1.21 trillion."

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The first approach involves purchasing physical gold in the form of coins and bars. This includes options like the "American Eagle" gold coins or gold bars available in various weights. While gold jewelry represents another physical option with aesthetic appeal, buyers should be aware it typically carries a premium above the price of pure gold.

Gold, along with other precious metals, trades in the relatively ancient weight measurement known as ounces. This weight unit effectively defines the global physical gold price benchmark. Investors should note that physical gold purchases involve additional considerations including storage costs and insurance requirements. Within Israel, physical gold purchases incur VAT. These transactions can be conducted through authorized gold dealers, though potential buyers should verify their chosen dealer adheres to international standards.

Exchange-traded funds (ETFs) represent a second, more operationally streamlined investment avenue. The buying and selling process mirrors that of any other security through securities accounts maintained at banks or investment houses. Investors can choose between foreign or Israeli-based ETFs. This approach eliminates physical storage concerns while offering enhanced liquidity and investment flexibility.

A third investment strategy involves purchasing shares in companies engaged in gold mining and trading operations, primarily listed on exchanges outside Israel. This approach offers positive potential during periods when gold prices rise and company performance remains strong. However, investors should recognize that performance depends on company operations and not exclusively on gold price movements. As with ETF investments, these transactions can be executed through standard securities accounts.

Readers should note that the information provided above does not substitute for personalized investment advice tailored to individual client circumstances.

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A cashless economy refers to an economic system where physical money (bills and coins) is rarely used, with most transactions conducted through digital means. In such a system, individuals and businesses rely on credit cards, digital payment applications, bank transfers, and other technology-based payment methods to purchase goods and services. This economic model requires advanced digital infrastructure and robust user privacy protections. Digital payments leave traceable footprints that enable financial activity monitoring and fraud detection.

There are several advantages to a cashless economy. First, it enhances economic efficiency by facilitating quick and immediate transactions. The elimination of cash handling and change-making reduces errors and saves time. Financial management becomes more convenient as digital tracking of expenses and income simplifies household budget planning and monitoring. Additionally, it can help reduce underground economic activity and strengthen government oversight of financial transactions.

However, a cashless economy also presents challenges. It risks exacerbating social inequality for populations lacking access to digital financial services, such as elderly individuals or people in rural areas and developing nations. Furthermore, there is increased dependence on technological systems that may be vulnerable to cyber-attacks and technical failures.

Ultimately, the future will likely bring a hybrid system where digital payment methods dominate while maintaining space for cash where needed. The main challenge will be finding the right balance.

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The recent announcement by Moody's to lower Israel's credit rating by two notches marks a historic low for the nation's financial standing. This development warrants a careful examination of its potential impacts on household finances and the strategies families can employ to mitigate risks.

The downgrade is likely to erode investor confidence in the Israeli economy, potentially leading to a contraction in foreign investment. The high-tech sector, a crucial economic driver that contributes approximately 25% of tax revenues and employs 12% of the workforce, had already experienced a slowdown in 2023. This situation could further impede economic growth, potentially leading to increased unemployment or decelerated wage growth. Consequently, households may face heightened job insecurity or reduced income prospects.

Moreover, a potential depreciation of the shekel against foreign currencies could inflate the prices of imported goods and services, affecting household purchasing power. This scenario underscores the importance of diversifying household investments and considering hedging strategies against currency fluctuations.

The stock market's reaction to this downgrade is likely to be adverse, potentially diminishing the value of households' financial assets and pension funds. In light of this, it is crucial for investors to reassess their portfolio allocations, ensuring a balance between risk and stability that aligns with their long-term financial goals.

The downgrade is expected to exert upward pressure on long-term interest rates. This could result in higher rates for variable-rate mortgages, increasing monthly payments for affected households. Homeowners with such mortgages should consider strategies to mitigate this risk, such as refinancing to fixed-rate loans or accelerating principal payments where financially feasible.

To manage rising financing costs, the government may implement austerity measures. This could lead to reductions in public services, including education, healthcare, welfare programs, and infrastructure projects. Households should prepare for potential increases in out-of-pocket expenses in these areas and adjust their budgets accordingly.

In light of these developments, proactive financial management becomes imperative for Israeli households. Those who have not previously engaged in comprehensive budgeting should initiate this practice immediately. This involves detailed tracking of income and expenses, identifying areas for potential savings, and establishing emergency funds to buffer against economic uncertainties.

For households already engaged in budgeting, a thorough reassessment of financial strategies is advisable. This may include:

1. Reviewing and potentially adjusting investment portfolios to ensure appropriate risk levels and diversification.
2. Evaluating debt structures, particularly mortgage terms, and considering refinancing options.
3. Enhancing emergency savings to cover at least 3-6 months of living expenses.
4. Exploring additional income streams or upskilling opportunities to increase job market competitiveness.
5. Reassessing insurance coverage to ensure adequate protection against potential financial shocks.

It is important to note that while the economic outlook presents challenges, it also offers opportunities for those who are well-prepared. By adopting a proactive stance towards financial management, households can enhance their resilience to economic fluctuations and position themselves to capitalize on potential opportunities as they arise.

In conclusion, while Israel's credit downgrade introduces new economic uncertainties, informed and strategic financial planning can significantly mitigate its impact on household finances. By staying informed, maintaining flexibility, and seeking professional advice when needed, Israeli families can navigate these challenging times and emerge financially stronger.

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Last week, the Consumer Price Index for August was released, showing a surprising 0.9% increase, far exceeding forecasts. Annual inflation has jumped to 3.6% from 2.5% just six months ago, with 36.2% of items experiencing price changes above 3%, compared to 28% a year ago.

This rising inflation presents a significant challenge for many households. The increasing housing costs are making it even more difficult to find affordable solutions in this sector. Additionally, mortgages are one of the most affected areas, with no interest rate reduction expected in the foreseeable future.

The current index rise has increased the inflation-linked portion of mortgages by almost 1%. For a million-shekel mortgage with a 25% index-linked component, this translates to an increase of about 2,000 shekels in monthly payments. It's worth exploring options such as refinancing your mortgage and reviewing other household credit arrangements for potential improvements.

Here are some strategies to help navigate these challenging economic times:

1. Budget Management: Continue or start maintaining a detailed household budget, involving family members in the process. This can help track expenses and identify areas for potential savings.
2. Smart Shopping: Compare prices across different stores, use coupons, and join discount programs to reduce expenses.
3. Savings Protection: Despite increased expenses and potential income stagnation, try to maintain your savings rate. This may require adjusting spending in other areas.
4. Investment Review: Examine your investment portfolios, including retirement assets. Consult with financial professionals to ensure your investment structure aligns with the current economic situation and make necessary adjustments.
5. Income Boost: Consider negotiating a salary increase or looking for higher-paying job opportunities. Exploring additional income sources can also help cope with rising costs.
6. Mortgage Options: If you're a homeowner, investigate refinancing options to potentially lower your monthly payments.

Remember, while these are challenging times, proactive financial management can help you weather the storm. Stay informed, be flexible, and don't hesitate to seek professional advice when needed.

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You might have heard the buzz about new banking regulations, but what does it mean for your wallet? In a nutshell, banks are being told to come up with plans to shift customer funds from checking accounts to savings accounts, and specifically to Certificates of Deposits that mature with a specific yield due to fixed interest rates. Now, before you yawn and flip the page, hear me out – this could be your chance to give your finances a much-needed boost.

First things first, let's talk CDs. They're like the reliable sedans of the banking world – not flashy, but they get the job done. When you're shopping around, keep your eyes peeled for the interest rate (the higher, the better), any pegging (that's fancy talk for how it's tied to inflation), and the fine print on early withdrawal. Oh, and don't forget to check how long you'll need to park your cash.

But wait, there's more! Have you considered money market funds? These mutual funds are the cool kids on the block, required to invest in low-risk, short-term instruments. Thanks to a recent law passed by the Knesset (that's Israel's parliament, for those who missed that day in geography class), these funds are becoming more accessible to everyday folks like us. The best part? They're required to show you the expected return upfront, making it easier to compare them with those CDs you've been eyeing.

Now, I know what you're thinking – "But what's the catch?" Well, each fund has its own playbook, so you'll want to read the fine print. They're different from CDs in a few key ways:

1. CDs are like making plans with your most reliable friend – you know exactly what you're getting and when.
2. Money market funds, on the other hand, are a bit more flexible. They invest in things like commercial papers and bonds that can be sold on any trading day. It's like having a friend who's always up for last-minute plans.
3. And here's the kicker – money market funds typically aim for higher returns than your average deposit account. Who doesn't like the sound of that?

Before you rush off to move all your money, remember this: I'm just your friendly neighborhood financial columnist, not your personal financial guru. This advice isn't one-size-fits-all, so before making any big moves, chat with a financial advisor who knows your specific situation.

Each money market fund operates under a specific policy that may include additional features and restrictions. These funds differ from CDs in several key aspects: While CDs offer a high degree of certainty – depositors know the exact duration and interest rate of their investment upfront – money market funds invest in more liquid assets. Commercial papers and bonds held by these funds can typically be sold on any trading day, offering greater flexibility. Moreover, money market funds generally aim to provide higher returns compared to traditional deposit accounts. These funds typically invest in a mix of government bonds, bank deposits, highly-rated corporate bonds, and commercial papers.

In the meantime, take a good look at your checking account. Is your money just sitting there, twiddling its thumbs? It might be time to put it to work. After all, in the world of finance, idle hands (or in this case, idle dollars) are the devil's playground.

Always consult with a professional for personalized investment and tax advice. 

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In these challenging times, many families are experiencing dramatic changes across various aspects of their lives. Whether it's moving to a new home, changing schools, or adapting to a parent's prolonged reserve service, the financial implications can be significant. As your financial advisor, I'm here to offer guidance on how to navigate these turbulent waters.

First and foremost, if your family is affected by these changes, it's crucial to prepare financially. For those already managing a household budget, now is the time to reassess and adjust your plan. If you haven't started budgeting yet, consider this your wake-up call – there's no better time to begin than now.

One question I'm frequently asked is whether children should be involved in these financial discussions. My answer is a resounding yes. However, the level of involvement should be age-appropriate. This approach serves a dual purpose: it helps in managing your household finances more effectively and prepares your children for making sound economic decisions in the future.

So, where do you start? Begin by creating a comprehensive list of anticipated expenses. This should include both one-time costs and recurring expenses. Think about pre-school year purchases like textbooks, notebooks, binders, writing materials, uniforms, and sports equipment. Don't forget to factor in monthly expenses such as extracurricular activities, hobbies, and allowances.

Next, attach a cost estimate to each expense category. Gather information from schools, activity organizers, and other relevant sources. This is where smart consumerism comes into play – do your market research, compare prices, and look for the best deals. These steps are crucial for developing accurate expense projections.

Once you have your data ready, I recommend holding individual meetings with each of your children to review their specific expenses. Follow this up with a family-wide meeting to discuss the overall financial picture. These discussions provide an excellent opportunity to teach your children about the difference between needs and wants – a fundamental concept in financial literacy. Remember, this understanding doesn't develop overnight, but with consistent reinforcement, your children will grasp it over time.

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Bank of Israel's latest figures on the Israeli institutional investor portfolio, valued at 2.5 trillion shekels (approximately $685 billion), show a significant 43.2% exposure to foreign markets. Foreign currency holdings account for 22.2% of these investments. Complementing these statistics, a 2024 study on Israeli investor behavior published by the Tel Aviv Stock Exchange indicates that over half of individual investors are now looking beyond national borders for investment opportunities.

This shift isn't limited to large-scale investors. There's a noticeable uptick in Israeli households opening bank accounts abroad. This trend stems from a dual desire: to spread financial risks and diversify investments, as well as to safeguard against potential domestic economic instability.

For those considering this route, several key factors warrant careful consideration, ideally with guidance from financial experts. These include selecting an appropriate country and bank, understanding the tax implications, and navigating regulatory requirements.

While Israeli law doesn't prohibit citizens from holding foreign bank accounts, it does mandate reporting these accounts to tax authorities. This is a crucial aspect to consider before proceeding. The choice of country for opening an account is the next critical decision. Factors influencing this choice may include the regulatory environment of the prospective country and whether the individual holds dual citizenship.

Selecting the right bank is equally important. Prospective account holders should be prepared for foreign banks to require extensive documentation, including proof of identity and address, income verification such as pay stubs, and evidence of additional income sources.

Thorough research into banks in the chosen country is essential. Key considerations include the bank's reputation, financial stability, and range of services offered. It's also vital to scrutinize the fee structure, including account management fees, money transfer charges, interest rates on credit balances, and foreign currency conversion fees.

It's important to note that this information should not be considered a substitute for personalized advice on taxation, regulatory compliance, and investment strategies. Individuals considering opening foreign accounts or investing abroad should consult with financial experts to navigate these complex decisions effectively.

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A recent bill proposed by the Israeli Finance Ministry could significantly alter the landscape of long-term savings in the country. The legislation would allow individuals to tap into their education savings accounts, known locally as "keren hishtalmut," even within the first six years, at a reduced tax rate of 15%. While the fate of this proposal remains uncertain, it sheds light on a unique savings vehicle in the Israeli financial system.

Education savings accounts in Israel function as a hybrid between a savings plan and an investment fund, available to both salaried employees and self-employed individuals. Under current regulations, these accounts enjoy capital gains tax exemptions, subject to certain contribution limits.

For employees, contribution rates are typically negotiated as part of their employment terms. The maximum allowable monthly contribution is set at 5% from the employee, matched by up to 7.5% from the employer. This structure ensures that employee contributions are at least one-third of the employer's contribution.

Self-employed individuals can also take advantage of these accounts, contributing up to 4.5% of their income, which is treated as a deductible expense. As of 2022, the annual contribution ceiling stands at 12,150 shekels, calculated as 4.5% of a 270,000-shekel income. These contributors have the flexibility to make either periodic or monthly deposits. Importantly, contributions to these accounts can also reduce the self-employed individual's taxable income for national insurance purposes.

A key feature of these education savings accounts is their status as the only equity savings instrument in Israel that offers full tax exemption, including on real gains. Profits accrued in these accounts are exempt from capital gains tax, provided the annual contribution doesn't exceed 18,960 shekels (as of 2022) and funds are withdrawn after a six-year holding period. A shorter three-year period applies if the funds are used for educational purposes.

Account holders have the option to make partial withdrawals once they reach the eligibility date. However, any partial withdrawal will render the account ineligible for further contributions. It's worth noting that there's no obligation to withdraw funds, and these accounts can serve as a component of an individual's overall retirement savings strategy.

While this information provides a general overview, it should not be considered a substitute for personalized financial advice tailored to individual circumstances.

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