Why Financially Savvy Individuals Have a Health Savings Account
There are several accounts you should open if you want to have a secure financial future and take advantage of tax benefits. The earlier you start saving and the more financially savvy you become, the more you will benefit your family in the long run.
The health savings account should be an option for your research. There are so many benefits associated with it. A major pro is that you can save on taxes. All the contributions you make to this account go into it before taxes. This means you can lower your taxable income. Consider how much a college student can save. If they are in the 10 percent tax bracket and contribute $25 a month to their account, they will save $30 a year on taxes.
You will be able to use health savings account for medical expenses. You can use it to cover co-pays, coinsurance, and deductibles. And you are able to do all of this tax-free. You may be able to use your HSA to cover expenses that are not covered under your health insurance. This could include eyeglasses, contacts, and dental care.
Part of setting yourself up for financial success is having more control over your money. When you put your money into an HSA, you have control. The money you put into it is yours forever. You can keep the money no matter if you switch health plans or jobs.
You can use a portion of an HSA to invest in stocks, bonds, and mutual funds. It can be part of your investment plan.