Financial literacy

Financial literacy is the key to financial prosperity. In this article I'll tell you what to do and where to start, and provide several useful tips.

Let's begin:

1. Mashkanta. Recalculating the mashkanta can save tens of thousands of shekels.

Where to start: identify what interest you pay for mashkanta and figure out the recalculation terms offered by banks.

Useful tip: you can and should bargain with banks!

2. Pension funds. In their 40s and 50s, the average Israeli has hundreds of thousands of shekels in pension funds. That means that discounts on dmei niul (commissions) can save thousands and even tens of thousands of shekels.

Where to start: find out how much dmei niul you currently pay as well as the lowest dmei niul you can get.

Useful tip: insurance companies offer excellent terms on loans against pension funds — you can take advantage of this!

3. Keren hishtalmut. A lot like pension funds. Fight to get the lowest dmei niul and you can get loans at very low interest rates against keren hischthalmut.

4. Family budget. Once people start working with a family budget, they are usually horrified by the amount of money that they throw away every month.

Where to start: record expenses and know exactly how much money is spent and on what.

Useful tip: figure out how to use Excel and create spreadsheets for a monthly budget.

5. Bank account maintenance fees. As a rule, we're talking about saving hundreds of shekels a year here.

Where to start: Calculate the amount of fees you paid last year.

Useful tip: Identify banks that offer plans with fixed monthly fees and choose the one that suits you best.

6. Accounts. People quite frequently overpay for internet, phones, TV packages, etc.

Where to start: Make a list of what and how much you pay each month.

Useful tip: One phone call to the relevant companies can often significantly reduce your monthly payment.

7. Tlush maskoret and knowing your rights. This item is the last one in my post, but it is, as they say, the million dollar question. Many employees, especially new repatriates, have no idea what they are entitled to. And as a result, they lose a lot of money.