By Pesach Benson • August 25, 2026
Jerusalem, 25 August, 2026 (TPS-IL) — After nearly three years of war following the Oct. 7, 2023, Hamas-led attack, financial pressure on Israeli households remains high, with 42% of respondents in a new survey saying their economic situation has worsened since the war began. The survey, commissioned by the International Fellowship of Christians and Jews (IFCJ), found that the burden was particularly pronounced among lower-income households and families of military reservists.
Forty-two percent of respondents said their household’s economic situation had worsened since the war began, compared with 10% who said it had improved.
The differences were particularly pronounced by community and income level: 64% of Israeli-Arab respondents reported a worsening situation, compared with 38% of Jewish respondents, while 16% of below-average earners reported a decline, compared with 2% of above-average earners. Sixty-three percent of respondents said they had to cut back on other expenses, chiefly leisure spending and clothing, to afford their food budget.
An Israeli reservist in Tel Aviv says goodbye to loved ones after being called up for service on Oct. 10, 2023. following Hamas’ October 7 attack., Photo by Gideon Markowicz/TPS
The financial pressure comes as Israelis prepare for the Jewish High Holidays and the start of the school year, two periods that bring additional household expenses. Forty-three percent of Jewish households said they spent, or planned to spend, extra on holiday food, while 32% said they needed financial help to cover their holiday groceries. Of those seeking assistance, 11% said they still did not know whether that help would materialize.
Twenty-three percent of parents of school-age children said they lacked the financial means to buy all the required school supplies, similar to the 24% recorded in a 2023 survey. Seventy-seven percent said they avoided buying clothing for their children for financial reasons, while 58% said the cost of living was hurting their ability to provide their children with a good education, including 22% who described the impact as severe.
Sixty percent of parents said their children were expressing worries ahead of the school year, citing academic difficulties, social concerns and school staffing issues.
Reservist Families Under Pressure
The financial pressure was particularly pronounced among families of reservists. About one in five households, or 19%, has a member who served reserve duty since the Oct. 7, 2023, attack. Fifty-five percent of reservist families reported increased household expenses because of reserve duty, driven mainly by transportation and fuel costs and spending on prepared food and deliveries.
Nearly half said reserve duty had negatively affected their employment, including lost opportunities for promotion, reduced pay or working hours, and a diminished position in the workplace. Fifty-eight percent said they had received a grant or other financial assistance to offset the financial impact of reserve duty, mostly from the Israel Defense Forces or the Defense Ministry, while 37% said they had received no additional financial assistance.
In response to the survey’s findings, IFCJ said it is expanding its “Back to School with Fellowship” initiative, distributing $100 gift cards to more than 10,000 children and teens. The cards are being distributed with the help of 22 nonprofit organizations, including the Reservist Wives Forum.
Seventy-five percent of reservist families who received assistance said the grants made them feel that their service was recognized.
“The cost of service does not end when a reservist returns home – it continues to affect household finances, employment and family life,” IFCJ President Yael Eckstein said. “We want every reservist and their family to know that they are not alone.”
The poll, conducted by the Geocartography research group between July 21 and 28, surveyed 802 Israeli adults ages 18 and older. The sample was representative of Israel’s Jewish and Israeli-Arab population and included an additional sample of more than 300 respondents who had served active reserve duty during the past three years.
