Building on fieldwork conducted in the West Bank settlement Beit-El, this article analyses the generational divide between first- and second-generation settlers in terms of their values and practices, against the backdrop of the new realities created by economic restructuring in Israel. It argues that the investments that settler parents made in their children's education and upbringing in the West Bank have yielded unintended consequences, due to normalizing tendencies working through them. Youth are thereby pushed towards alternative paths to well-being manifested in self-interested pragmatism or in radicalization. From the standpoint of neoliberal forms of social reproduction, these seemingly contradictory trends are dialectical counterparts. The article thereby offers a template for making sense of youth values and practices, including fundamentalist ones, in the framework of neoliberal capitalism. (Contains 19 notes.)