This calculator shows the cost of raising children in Israel as a function of a household’s total net income The total net income includes, in addition to income from work and business, capital income, the imputed value of income from property, and transfer payments from different sources, all net of mandatory tax payments (income tax, National Insurance Institute payments and health tax).
Contributions to pension funds, keren hishtalmut, insurance plans and mortgage payments do not reduce the net income.
What is the imputed value of income from property? If a person rents a house for NIS 3,000, and a second person lives in an identical house but doesn’t pay rent as he owns the house, the total income of the second person is higher than that of the first person by NIS 3,000 due to the cost of rent he doesn’t incur. It may also be thought of as the rent a person pays to himself. , number of children and their ages.
The result reflects Israeli households’ actual behavior, as measured by patterns of income and expenditure in the Israeli Central Bureau of Statistics surveys.
For more information on the methods used to calculate the costs of children in Israel, see Karlinsky & Sarel (2020)
The monthly average cost of raising childrenThe cost of children as obtained from the calculator is the additional expenditure required to enable a household to maintain the same material standard of living it would have if it did not have any children and if its pattern of expenditure is similar to that of other married households in Israel. is expected to be in the range:
WhyKarlinsky & Sarel (2020) estimate the cost of raising children by two different methods, each corresponds to results from different countries.
The difference between the values may be used as a range for predicted cost. Further information may be found in the paper. are there two values here?
The monthly average cost of raising childrenThe mean total net income in the bottom decile of families with children is NIS 6,787. in the bottom decile is expected to be in the range:
This calculator estimates the costs of raising children for families with two parents and children up to the age of 18 only.
The calculator’s results differ from the paper due to adjustment to 2020 terms by the nominal consumption expenditure per capita (see section 8 in Karlinsky & Sarel 2020 for details)