3 Financial Resolutions to Make on Your HSA in 2020
It’s also the perfect time to plan how you’re going to maximize your health savings account (HSA). Here are three financial resolutions that are bound to help you do just that!…
Improve Your Financial IQWhat do you know about your work benefits? A recent study by Guardian discovered that while 80% of employees say they understand their benefits, these workers were overestimating their actual benefits knowledge. Time to face reality.
The folks at Guardian took a 10-question quiz on benefits coverage and terminology and found that the average score for individuals was 72 (a rather dismal “C” grade if they were back at school). And more alarming still? One in five working Americans received the equivalent of an “F”.
By making yourself aware of important insurance benefits, you’re mitigating financial risk. Plain and simple. Improving your financial IQ can be as simple as taking specific time to read about personal finances (like on blogs or in magazines). Meeting with a financial advisor, and tracking your spending and net worth are also great ways to ensure you’re taking the right steps towards investing in yourself.
Pay Your HSA FirstYou’ve heard the investing maxim “pay yourself first,” right? It’s simple, really. Every payday, set aside a percentage of your income to go directly into your HSA. Do this before you pay your other bills or before you go out to dinner again or buy that new blouse you probably don’t need (we’ve all done it). With Starship, you can set your savings to auto-pilot, so that “pay yourself first” money gets put aside right away.
So what if you’re paying off debt? Financial advisors still recommend you pay yourself a small amount every paycheck. Then, as you lower your debt, you’ll establish the habit of saving and you can increase the amount enormously when the debt is gone. The key is you’re helping yourself ward off healthcare-related debt in the future.
Avoid Hidden Fees in Your HSAFees. Nobody likes ‘em. And the problem with HSAs is that fees can add up quickly, and often go unnoticed (after all, you’re likely not peeking at your HSA every day like you might your checking account).
Health savings account providers often charge monthly account maintenance fees. And some require you to keep a minimum account balance to avoid the fee. Lucky for you, Starship’s HSA is totally free. So no minimum balance, no monthly fees, no extra card fee, nothin’. Avoiding hidden fees in your HSA is pretty darn easy when they aren’t any. 😉
So, before you get too far in with your current HSA provider, make sure you’re not spending more than you should on fees. And while you’re at it, see how much you earn in interest on your account balance.
Be in the know before the new year approaches, and take action so you’ll wake up on Dec. 31, 2020, with no regrets about how you managed your HSA. You’ve got this!