Introduction
This document proposes an assistance program for families in the Arab community in Israel affected by the Coronavirus pandemic. The program aims to provide financial education tools to equip households with the skills and habits necessary for practical financial management and better economic decision-making. Financial education is critical for fostering wiser and more effective economic behaviour among the general public.
Program Leadership
The Arab Economic Forum, an independent, non-profit socio-economic research center, will manage this program. The Forum focuses on studying social and economic issues and conducting applied research and policy studies in economics and society to effect fundamental changes in the socio-economic landscape of the Arab Palestinian community in Israel.
The Forum operates financially and administratively independently without any party, religious, or ethnic affiliations. It is overseen by a Board of Directors composed of renowned academics and public figures from Israel and abroad. The Board sets the Forum’s research policies, approves its plans and budgets, and oversees the implementation of its programs. Dr. Sami Miaari, appointed by the Board, directs the Forum, and its activities are monitored by an independent auditor, also selected by the Board.
The Forum’s vision is to develop and expand the economy of the Arab community in Israel in all aspects of life, aligning with its mission to enhance financial literacy among individuals and institutions within this community.
Background
The Coronavirus pandemic has caused significant economic disruptions in the Israeli economy, severely affecting families and individuals. Following government measures to curb economic activities to fight the virus, business owners, freelancers, and employees have faced a challenging financial situation. Consequently, many families struggle with substantial income losses while their expenses remain unchanged or even increase.
During these challenging times, the importance of financial education in the Arab community cannot be overstated. Due to the particular nature of the local labour market and the unique employment characteristics of its men and women, this community is expected to face significant economic challenges. Raising awareness and promoting financial education among Arab families is essential for enhancing their quality of life. Benefits of financial education include increased awareness of opportunities and risks, the importance of wise and balanced consumption, price comparison, delaying gratification, and navigating a culture of luxury.
Financial education helps consumers understand financial services and market principles, developing the skills and confidence to make informed decisions. It also helps people recognize when and where to find professional assistance. This education is crucial for individuals to take complete responsibility for managing their financial affairs wisely and effectively.
The program tailors financial education to be age-appropriate, starting with young children who establish the foundation of sound financial management and ending with older adults whose economic decisions directly impact their and their families’ quality of life. By internalizing financial education values, families acquire the right tools and habits to navigate various situations and make wiser economic and financial decisions. This includes acquiring knowledge, skills, and values that foster prudent consumer behaviour and long-term saving and investing abilities.
