Some 24% of Israelis are overdrawn on their bank accounts for most if not all the month, according to a survey by Bank Otsar Ha-Hayal and New Wave Research.
In the poll of 500 Israelis over 18, 39% said their large overdrafts were due to their poor financial management.
Apparently Israelis' finances do not improve as they reach middle age. Only 8% of Israelis under 24 said they have overdrafts, while 17% of people between 25 and 34 had overdrafts. This number rose to 38% in the 35-44 age bracket and 39% for 45-54. The numbers improve after 55.
The percentage of 18-to-24-year-olds who said their financial actions were not up to snuff reached 62%, compared with 40% for those aged 35 to 44.
There is no connection between monthly income and the size of a bank overdraft. Around 35% of people with above-average wages are in overdraft for the entire month. Some 32% of the respondents attributed their overdrafts to an exceptional occurrence such as an illness or a vacation.
"Financial education is the key phrase. The average Israeli does not know how to balance expenses and earnings," said Bank Otsar Ha-Hayal CEO Israel Trau.
"Israel is an expensive country, so it seems to us that an overdraft is legitimate and logical. And some claim that it's a necessity given the situation. But of course, reality is far from that."
