Having a baby is one of the most joyous times of your life. And while it’s true that having a little one of your own is priceless, it’s also known to come with a cost—anywhere from $10,000 to $30,000 to be exact.
It’s understandable that the excitement of having a newborn may eclipse your concerns about the potential associated costs. But whether you’re thinking about starting a family, currently expecting, or already have a couple little ones at home, it’s never too late to financially prepare for your baby’s care, as well as your own! A tax-advantaged health care account, such as a health savings account (HSA) or flexible spending account (FSA), can help offset the cost that comes with caring for your little one.
Remind Me: HSA vs. FSA…What’s the difference?
An HSA is a tax-advantaged account that rolls over every year and can be used to pay for health care expenditures. You are only eligible to contribute to an HSA if you have a high-deductible health insurance plan. It can be invested and earn interest, similar to a 401(k).
An FSA can be opened with any insurance plan. An FSA does not roll over year after year, though some employers do offer grace periods or certain roll over options. FSAs can help pay for a variety of medical expenses, including dental, vision, prescriptions, and other healthcare items.
Eligible HSA and FSA Products or Services
These accounts can be used toward fertility treatments, doctor visits, ultrasounds, and certain over-the-counter baby products and necessities that you’ll need during pregnancy and once the baby comes.
Since the HSA carriers over year to year, you can build your balance for future well-child visits, braces, and that inevitable broken arm. Right, #momsofboys?
“If you’re a mom who’s enrolled in an HSA or FSA, you’d be surprised by just how many eligible products can help improve your physical (and financial) health,” says Brad Bortone, Managing Editor at Health-Ecommerce.
“Whether you need products that help with new motherhood, like prenatal vitamins, breast pumps and saline wipes, or even just items to help handle everyday aches and pains, Mother’s Day is a great time to give yourself a gift of better health, made even better by using tax-free funds,” he adds.
Take a look at the lists below of a breakdown for what you can purchase with your HSA and FSA.
(If you have any questions about eligible products or services, make sure to check with your plan administrator.)
Egg donor fees
Pregnancy/fertility tests and treatments
Possibly Covered: Egg and embryo storage fees (contact your plan administrator)
Doula, if medically certified
Supportive belly wraps or bands
After Baby Is Born
Newborn doctor visits
Breast pumps and supplies
Children’s cold medicine, fever and pain relievers, and digestive aids
Oral medication dispensers
Teething medication (with prescription)
Diaper rash ointment (with prescription)