What is an HSA?…and why the heck should EVERYONE have one?? (+ $100 Target Giveaway!)

what the heck is an HSA and why should EVERYONE have one?? Great video that explains it all! on FunCheapOrFree.com

If you know me, you know I'm a fan of having multiple bank accounts. In fact, I recommend having AT LEAST seven accounts, though my family has over 20 at this point (true story). Are you hyperventilating yet? Don't! I promise it's not that weird! In fact, my “The 7 Bank Accounts Every Family Should Have” post(s) have broken the internet several times, because apparently, it's super weird for people to think about having lots of accounts. Let me tell you from experience that the more accounts you have, the EASIER it is to manage and organize your money.

One of those 7 accounts everyone MUST have is an HSA account.

No, an HSA is not a virus. It's a legitimate, life-saving (literally, in some cases) TAX-FREE savings account that helps make healthcare more affordable for you and your family!

Seeing as how it's Focus on Finances month, and the fact that January is a huge month for people to be thinking about healthcare and budgeting, I made a quick video to explain HSA's better.

Watch the video online or click and watch below, then keep reading to see how you can win $100 to Target while you're at it!

See, that wasn't so bad right?? It's a simple account, just like all your other savings accounts, but it's TAX FREE so you end up saving your skin in several ways.

So…what if I don't qualify for an HSA?

The reason I say “everyone should have one”, even though not everyone can qualify for an HSA, is because I believe you can do your own! If you don't qualify for a formal HSA, I recommend having a savings account, and setting money aside just for medical expenses. Sure, it's not tax-free like an HSA is. But the concept of setting money aside so a medical bill doesn't eat up your grocery budget is INVALUABLE. A real HSA is top choice, obviously, but second best is a good ol' savings account, just for medical expenses.


As mentioned in the video, here are some helpful links…

Remember, UHC is giving away $100 weekly and $500 grand prize winner to people who take those quizzes! They only take a second so it's 150million% worth it.
Now, for my OWN giveaway!

In addition to the $100 and $500 prizes UnitedHealthcare is giving away on their website, I'm giving away $100 to Target here on FCF, just to you Freebs!

Entering is so easy, and you can come back

a Rafflecopter giveaway

Who couldn't use an extra $100 schmacks to Target?? *waves arm in air annoyingly vigorously*

And while I'm here – quick reminder that I'm running one of my biggest sales of the year on my Budget Boot Camp online program where I go over the 7 Bank Accounts principle, and many others, in great detail. If you sign up before Sunday Jan 8 at midnight, you not only get the program for $119 instead of $159, but you get 50% off and a FREE spouse ticket to my upcoming BBC'17 conference! So head to BudgetbootCamp.com and sign up today. If I don't save you at LEAST what you paid for the program, I'll refund every dime…so you have nothing to lose.

Best of luck to you all, and have a fabulous weekend!








Thank you to UHC for generously sponsoring this post. As explained in THIS POST, I'm now blogging ONLY for you and me. And HSA video is something that I've been wanting to do for you so it's perfect that UHC was willing to sponsor it to keep this blog going strong!


  1. AvatarValerie K. says

    Your title is very misleading because “EVERYONE” should NOT have an HSA. EVERYONE CAN’T have an HSA. Only those with high deductible plans can. My husband is not self employed. He has an awesome job with awesome health coverage. Last year we maybe spent $300 for our family of 4 on health care costs because our deductible is so low. This year I will be having a baby and 100% of my maternity care will be covered. And we will spend much less than $6000 on our premiums because his employer pays for 70% of the premiums. So yes, if I needed a high deductible plan, I would get an HSA, but for those of blessed to have great health coverage by our employers, an HSA is not even an option or good idea.

    • AvatarFunCheapOrFree says

      Good call – I shouldn’t have said everyone, because it’s true, not everyone can (or should!) have one. That was poor wording on my part, simply didn’t think it through! Thanks for your comment!

      • AvatarValerie K. says

        Thanks for the clarification. and i like the idea of having money set aside just for medical expenses. Yes, I would love for it to be tax free, but I’m just thankful that we will still spend much less using our current health plan than we would with a high deductible plan. Having great employer sponsored insurance is more and more rare, so I’m thankful for the savings that provides for my family. Love your blog, excited to implement some of your strategies this year and be debt free except for our mortgage by 2018! Hurray!

  2. AvatarStacey says

    Hey Jordan. In Canada we don’t have or need an HSA, but I’m commenting because you mention having like 20 bank accounts. I’m wondering if this is similar to what I do and would like to learn more. I need to find a way to squeeze an extra $70 per month out of my budget and I’m struggling. I’m wondering if we could even make it work on your budgeting system. I’m not sure we could live on just 70% of our income. Our only debt is our house, thankfully, but we are a family of 6 living on one income. Any advice? I already budget every dollar that comes into our hands. We live within our means.

  3. AvatarKatrina says

    Hey Jordan! My family recently signed up for a Christian Health plan called Samaritan….something or other…. its basically a coop for paying medical bills. Do you know if getting an HSA is an option somewhere else?
    My husband works for a very small local business, so I’m confident its not an option there. Thanks!

    • AvatarFunCheapOrFree says

      Honestly, I’m not sure! I’m not familiar with co-ops. I know you can get an HSA through a credit union, bank, employer, or health insurance company – but you qualify only if you have a high deductible plan. So I’m not sure how that would work with co-ops, might be worth a few phone calls to find out though!

  4. AvatarAllison says

    Hey Jordan! I loved this post particularly because my husband and I work for the same school district which contributes to our HSAs for us. I also contribute out of my pay check more because we knew we were ready to start having a family. One thing that I am looking into is can I use my husband’s HSA on my medical expenses as I am expecting our first child. He signed up for his as a requirement of employment before we were married. I would also love to see a post on questions to ask your insurance provider when you are pregnant.

  5. AvatarRachel says

    I looked on united healthcare and only could see short term plans. Is that what they classify them as? Only short term options?

  6. AvatarHeather B says

    I really appreciated this video! When I first watched it, I think it was the first time I really understood what an HSA was! Haha

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