Why You Should Get a Health Savings Account (HSA) When You're Young and Healthy
- Deborah Ann Martin
- Mar 4, 2021
- 4 min read
Updated: Aug 4
Why should you get a health savings account (HSA) when you are young and healthy? Simple…to save yourself money and to invest in your future.
If you're young and healthy, you might think a Health Savings Account (HSA) doesn’t apply to you. I used to think that, too. I figured HSAs were for older people, families, or those dealing with big medical bills. At the time, my paycheck felt too small to set money aside for something I didn’t think I needed.
Looking back, I wish someone had explained how powerful an HSA could be. Starting early would have saved me money, reduced my taxes, and helped me prepare for the unexpected. Here are 10 reasons why opening an HSA when you’re young and healthy is one of the smartest financial moves you can make.
Lower Your Taxes Today
Every dollar you contribute to your HSA is pre-tax. That means you pay less in taxes now and reduce your taxable income for the year. Even small contributions—just $10 to $20 per paycheck—can lower what you owe and help you keep more of your money.
These deductions might help you qualify for other tax benefits if your income is lower. And since most people don’t itemize medical expenses, this is one of the few ways to get a health-related tax break. Just make sure to check the IRS limit each year to know how much you can contribute.
Invest and Let Your Money Grow
Unlike a Flexible Spending Account (FSA), money in your HSA doesn’t expire. It rolls over year after year and can even be invested in mutual funds, just like a retirement account. The growth is tax-free as long as the money is used for qualified medical expenses.
Personally, I set my HSA to invest any amount over $1,000 automatically. If I need the money later, I can return it to my main HSA balance within a few days. It’s a great way to build long-term savings for future healthcare costs.
Take Advantage of Employer Contributions
If you have a high-deductible health plan (HDHP), you likely qualify for an HSA. Many employers contribute to HSAs as part of their benefits package. That’s free money. And like your own contributions, it’s not taxed unless you withdraw it for non-medical use. It’s a simple way to grow your account faster without any extra effort.
You Can Adjust Your Contributions as Needed
Unlike most benefits that lock you in for the year, many employers let you change your HSA contributions during the year. When I was diagnosed with cancer, I increased my contributions mid-year to cover upcoming expenses. That money went in pre-tax and was available just a few days after payday.
If you expect higher medical costs in the future—whether for prescriptions, procedures, or just routine care—adding to your HSA now can save you money later. Check with your HR department to understand your options.
You Own Your HSA—Even If You Change Jobs
One of the best things about an HSA is that it stays with you. It’s not tied to your employer. If you leave your job, the money stays in your account. You can continue using it, contributing to it (if you have an HDHP), or investing it. It's yours for life, even into retirement.
It's a Safety Net During Tough Times
If you lose your job or face an insurance gap, your HSA can help. It can be used to pay for COBRA premiums, doctor visits, or prescriptions during unemployment. When I was laid off, I used my HSA to cover medical bills while I searched for my next opportunity. It gave me peace of mind at a time when I needed it most.
Use It for More Than Just Doctor Visits
HSAs cover a wide range of health expenses. Over-the-counter medicines, medical supplies, and even certain vitamins or chiropractic care (with a prescription) can all be eligible. Retailers like Amazon now accept HSA payments for qualified items.
Every year, the government updates the list of eligible expenses. It’s a good idea to check and see what new items qualify.
Pay Easily with a Debit Card or Get Reimbursed Later
Most HSA providers issue a debit card that you can use to pay for eligible expenses at the point of sale. If you pay out of pocket, you can submit receipts and get reimbursed later—there’s no time limit on when you can be reimbursed.
Personally, I keep a folder where I store all my receipts just in case I ever need to show proof. It’s simple and protects you if the IRS ever asks for documentation.
High-Deductible Plans Can Actually Save You Money
Young and healthy? High-deductible health plans usually come with lower monthly premiums. That’s money you can put into your HSA instead.
Even if you don’t meet your deductible, you’ll still benefit from in-network discounts and negotiated rates with providers. Your HSA can help you cover those out-of-pocket expenses.
Plan Ahead for Predictable Costs
You may not need much medical care now, but things like dental cleanings, eye exams, glasses, and prescriptions are often planned expenses. If you know what’s coming, you can set money aside in your HSA in advance and pay for it with pre-tax dollars.
Even a small yearly contribution—$500, for example—can go a long way. You’ll be glad you planned ahead when the bills come due.
Real Life Example: When I Needed It Most
I didn’t realize how important my HSA was until I faced a major health challenge. After my cancer diagnosis, I had nearly $30,000 in out-of-pocket costs over two years. My HSA made it possible to pay those bills without going into debt. I could focus on healing instead of worrying about money.
It was a financial safety net that I had unknowingly been building for years.
Start Now, Get a Health Savings Account (HSA)
You may feel like you don’t need an HSA right now. But the truth is, starting early is key. You’ll save on taxes, grow your money through investments, and build a financial cushion for future medical expenses.
Don’t wait until something unexpected happens. Open an HSA now. Even small contributions can make a big difference over time.
Your future self will thank you.
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