Flexible Spending Accounts (FSA’s) are offered by many employers in the United States. The benefits of a flexible spending account (FSA) is that it allows you to use pre-tax money to pay for qualified medical expenses. What is the benefit of that you ask? For simplicity’s sake, let’s assume that you make $1,000 per month and that your tax bracket is 25%, and you have $100 put into your FSA, now you’re only taxed on $900, or $225, meaning that you take home $675. At the end of the year, you’ll have $1,200 in your Flexible Spending Account which you can use for any qualified medical expenses. Now assume the same situiation, however, you don’t have an FSA setup. Each month, you earn $1,000, but you don’t contribute anything to an FSA, so you are taxed 25% and you only take home $750. At the end of the year, you have no money in an FSA account, and you only have an extra $900 (assuming you saved that money). Let’s say that you have an emergency procedure performed that costs $1,100 – In scenerio 1, you’ll be able to pay for the procedure from the Flexible Spending Account, however in option 2, you’ll be left to pay the bill on your own, with your post tax dollars.

Flexible Spending Accounts are great because they give your money more power since you aren’t paying taxes on the money that is contributed.

This might seem like a trivial point, but you’d be surprised at how many people just go with the first and only quote that they get when it comes to insurance policies. Sure, it can be a hassle shopping around, but comparing insurance rates can potentially save you hundreds of dollars per year on homeowners insurance.

In order to get a good idea of a starting point, or a range of costs, call your state insurance department for a list showing typical prices charged by different insurance companies. From that list, you’ll be able to quickly see who the low cost insurers are. You should then proceed to call the 3-5 lowest priced companies and then compare their coverage options.

Think about it, there really isn’t any point to pay 30% more for the same coverage. Is there?

When it comes to routine checkups, and or picking up prescriptions, try visiting a local clinic. For college students, your university clinic is a great option. Chances are that rates will be more competitive for office visits, procedures and for prescription medications.

Don’t let the fact that you have no insurance keep you away from seeking medical care when you need it. Visit a clinic and find the pricing for an office visit for uninsured individuals.