A recent survey reveals a decline in Israeli students' academic achievements, with one in five 8th graders scoring below average in mathematics and science. The data highlights a deep-rooted problem of a values crisis in Israeli society, which affects students' functioning and achievement. The COVID-19 pandemic, social divide, and trauma of war have had a significant impact on students' emotional availability for learning. Investing in social, emotional, and values-based education is crucial to address this crisis and improve academic motivation. Values education can foster qualities and life skills in students that impact their academic achievements and create a safe space for exploring complex issues. Israel must invest in innovative pedagogical, cultural, and social approaches that prioritize values and the student's social context.