Plan your child education savings in Israel. Enter child age, monthly savings, and expected return to project the fund at age 18 and see the monthly saving required to meet your university tuition target.
Enter your child age, monthly savings amount, and expected annual return to project the education fund at age 18 and find the monthly saving needed to hit your university tuition target.
Projected fund at age 18
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Total saved (contributions)
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Investment growth
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Target fund at 18
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Monthly required to hit target
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Your breakdown
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The true cost of university education in Israel
Tuition at Israeli public universities in 2025 is relatively affordable by Western standards, at 10,000 to 14,000 ILS per academic year. But tuition is only part of the cost. Students who study in a city different from their home pay rent, food, transport, and living costs that can add 5,000 to 8,000 ILS per month. Over a four-year degree, total costs (tuition plus living expenses) can reach 200,000 to 300,000 ILS. If you are saving from when your child is born, you have 18 years to build this fund. Starting early makes compounding work in your favour; a monthly saving of 400 to 600 ILS invested at a 6 percent annual return for 18 years produces 170,000 to 250,000 ILS.
How the calculator computes the required monthly saving
The calculator uses the future value of an annuity formula to project what your current monthly savings will grow to by age 18 at the chosen return rate. It then compares this projection to your target fund and calculates the monthly saving needed to close any gap. The formula for the required monthly payment is: target divided by ((1 + r/12)^n - 1) divided by (r/12), where r is the annual return rate and n is the number of months remaining. This gives you the exact monthly saving needed at a constant rate to hit the target exactly at age 18, assuming the return rate holds steady throughout.
Getting the most from an Israeli education savings strategy
Start by enrolling in the government Child Savings Account through Bituach Leumi and choosing an equity-heavy investment track while your child is young. The government contributes 52 ILS per month; consider topping this up with an additional 200 to 500 ILS per month in the same account or a parallel investment account. Use an index-fund approach for cost efficiency. Review the savings target when your child reaches age 12 and adjust the monthly contribution if you are behind. Avoid withdrawing from the education fund for other purposes. If the fund grows beyond the education need, the surplus can form the start of a financial gift for your child after graduation.
Frequently asked questions
How much does university cost in Israel?
Israeli public universities charge tuition of roughly 10,000 to 14,000 ILS per academic year for most undergraduate degrees, with law, medicine, and technology programmes at the higher end. A four-year bachelor degree therefore costs approximately 40,000 to 56,000 ILS in tuition alone. Add living costs for students who move away from home (rent in student cities like Be’er Sheva or Haifa is lower than Tel Aviv, but still 3,000 to 5,000 ILS per month), food, transport, and study materials, and the total cost of a four-year degree could reach 200,000 to 300,000 ILS depending on location and lifestyle. The government Child Savings Account (Cheshbon Chisachon LeKatan) started at birth provides a small base, typically reaching around 15,000 to 20,000 ILS by age 18.
What is the Israeli government Child Savings Account?
Since 2017, the Israeli government deposits 52 ILS per month into a savings account (Cheshbon Chisachon LeKatan) for every child from birth until age 18. Parents can top up this government contribution with their own additional monthly deposits. The funds are invested in the capital market through pension and provident fund managers. At age 18, the accumulated fund (government contributions plus returns) becomes available. The account is managed by Bituach Leumi and routed through a pension fund or savings fund manager chosen by the parent. By age 18, the government-only contributions plus investment returns are expected to produce roughly 15,000 to 25,000 ILS, which is a useful but modest contribution to education costs.
Where should I save for my child education in Israel?
Several vehicles are available. The government child savings account (above) is the baseline and requires no action beyond choosing a fund manager. Beyond that, a Keren Hishtalmut (study fund) offers tax-free growth after six years and can be used for any purpose, making it suitable for education funding if the timing aligns. A regular investment account (Cheshbon Haskaot) in index funds or ETFs through an Israeli broker or bank is flexible and can be built up over 18 years. Provident funds for education (Kupat Gemel LeHinuch) offer tax deferral. For most parents, a combination of the government account plus regular index fund investment provides the best balance of simplicity, tax efficiency, and flexibility.
Are education savings tax-free in Israel?
Capital gains on investments in Israel are taxed at 25 percent for individuals. However, the government child savings account earns returns inside a pension or provident fund structure that defers tax. Withdrawals from the child account at age 18 are taxed only on the gain, and the tax rate on the government-contributed portion may be reduced. Keren Hishtalmut contributions (up to the exempt ceiling) grow tax-free and are withdrawn tax-free after six years. Regular investment accounts accumulate gains that are taxed at 25 percent when sold. Consult a licensed Israeli financial adviser (Yoetz Pensia) for a strategy tailored to your tax situation.