Show Me The Money (Article# 78) 3/20/2008

As you are I am sure experiencing in the USA, the USA financial crisis has really hit hard in our circles. The average Israeli, with his Shekel based income has not seen changes beyond the normal inflation, but anyone with a dollar based income or dollar linked businesses has really suffered in the time we have been here. Us included.

Although the prices for general goods (food, clothing, etc.) had been relatively stable (things have definitely gone up the last few weeks) since our arrival, with each tumble of the dollar, my monthly earnings fell lower and lower. At this point, I have lost over 25% of my take home pay to currency fluctuations. That is NOT a typo.

Anyone else with a US income or dollar linked income has seen similar losses. Businesses as well.

Our Yeshiva lost well over 6 figures (in dollars) of expected income due to the falling dollar – money that we had not expected to need to raise. Of course, our employees and vendors expect to be paid in Shekel no matter how our income arrives and these losses have been both unforecasted and a cause of distress. Every other Yeshiva, Seminary or any other tourist based business that gets its revenue in dollars has seen similar problems.

It had gotten so bad that we decided to change our income stream and instituted a new policy for the upcoming year that our tuition would be quoted and paid in shekels. While it has definitely created confusion for the families of next year’s students, the elimination of the risks involved in the currency fluctuation will definitely be worth it.

With such a tremendous dip in income, it has become difficult for people in our circumstances to budget our expenses. We literally have no idea how much we will bring home each month and cannot forecast our lives in any meaningful and direct way. It hurts in other ways as well.

While we are very happy in our current rented home, eventually we will want to purchase a home of our own. Many Olim come and settle in as we have, renting a home and getting a sense of the neighborhood before committing to a major investment in a home. Unfortunately, with the fall of the dollar, it takes a lot more money to buy a home here.

Most major purchases (like homes) used to be priced by the dollar, but with the degradation of the value of the dollar, these prices have also converted to shekels. When we decide to buy a home, we will be converting dollars into shekels pay for it. If the dollar stays as low as it has fallen, it will significantly limit our choices. Along with those of many other families.

In fact, I would not be surprised if the dollar’s weakness is the cause of a drop in the amount of olim that come to Israel in the next couple of years. I know that we planned out Aliyah with a calculation on what we would be spending on buying a house and how much we would need to earn in order to pay for our living expenses. While the math for that calculation stays the same, the numbers certainly change and living here becomes much harder.

Speaking about people coming to Israel, my youngest brother Ozer just spent a week long visit with us. He came on his pilot trip, looking to set things up for his family’s Aliyah this coming summer. His visit really brought a major sense of déjà vu. I could not help but reflect back to our pilot trip – choosing a neighborhood and looking at homes, looking for schools, interviewing for jobs and of course, visiting the family that was already here.

We are pretty sure he has found a place to live and he learned a lot about the school system here for his kids. I know my kids enjoyed having him here and they are definitely excited to be going in a few short months to greet the whole family at the airport as they come here to stay.

I know this is repetitive, but it is at these times of year that we miss you the most. Holidays and celebrations are simply not the same without having a chance to share them with Bubbees and Zaidees, Aunts, Uncles, cousins, etc. Even though we have developed new friendships here, our old friends are definitely missed as well.

On behalf of Goldie and myself, I wish you a Purim Sameach. We look forward to celebrating Purim together with you in Israel for many years to come.