HSAs are triple-tax advantaged—offering tax-free contributions, investments, and withdrawals

HSAs are frequently criticized for exacerbating inequality in healthcare access

Health savings accounts offer large tax advantages, but require personal contributions. Some argue that the tax advantages benefit wealthy individuals more than anyone else and that HSAs don't do much to help people who can't afford to regularly contribute to one. As a result, HSAs only decrease costs for those who can comfortably invest in them, and health inequalities between high-income and low-income individuals are exacerbated.

As healthcare costs have increased post-COVID, critics have been skeptical about the real impact HSAs/FSAs have had in alleviating medical expenses

Health savings accounts and flexible spending accounts are designed to be tax-advantaged ways for people to save money on healthcare and medical expenses. But one recent study found that HSAs can increase families' total out-of-pocket spending on healthcare by more than $500 per year.

Health savings accounts are designed to alleviate upfront costs for high-deductible health plans

High-deductible insurance plans often have low monthly premiums, but require policyholders to meet a set spending threshold on medical expenses each year before the insurance kicks in. Health savings accounts give high-deductible plan holders a tax-free savings account to balance the high upfront costs that come with an HDHP.

HSA spending spikes early in the year, while FSA spending peaks in December

Because health savings accounts are designed to alleviate high upfront costs for people with high deductible health plans, the majority of HSA spending happens early in the year. However, around 10% of flexible spending account funds are used in December—right before the use it or lose it deadline.

Trump's 2025 'One Big Beautiful Bill Act' expanded access to health savings accounts

After the "One Big Beautiful Bill" took effect, Medicare users with bronze or catastrophic level health plans, as well as certain medical care membership models and telehealth users, became eligible for HSAs. Supporters of HSAs say expanding access to this savings program is more effective in alleviating high consumer costs than subsidizing healthcare plans or direct treatments.

Health savings accounts evolved out of medical savings accounts introduced in the 1990s

After medical savings accounts in Singapore and South Africa proved successful, the US introduced a pilot program for small business owners and the self-employed to pair with high-deductible health plans in 1996. In 2003, Congress passed a law inspired by that program, and health savings accounts became tax-free and open to anyone with a high-deductible plan. FSAs, on the other hand, date back to the 1970s.

Watch a breakdown of tax breaks most Americans don't know about

Programs like healthcare savings accounts or flexible spending accounts are tax-free accounts that are designed to help lower healthcare costs. However, many Americans don't use them and don't understand how they work.

Employers get to keep any FSA funds not used by the annual deadline

Flexible spending arrangements have use it or lose it deadlines defined in the plan. Employers that offer FSAs get to keep any unused funds, but that money has to go towards administering the FSA program. Remaining FSA funds can also be pooled and divided evenly amongst a company's FSA participants, but very few companies actually do this.

A 401(k) plan allows workers to save for retirement without paying taxes until later

With a 401(k) plans you can invest more money now and let it grow with compound interest. Americans have more than $7T invested in these types of accounts.

Most Americans take the standard tax deduction

A tax deductible is an expense that a taxpayer or business can subtract from adjusted gross income, reducing their taxable income and therefore reducing the amount of taxes owed. Governments often use tax deductibles as a way to reward people who do things that are considered beneficial to society, like charitable donations.

ETFs and mutual funds are both taxed on capital gains and on dividends

Many experts consider ETFs to be more tax-efficient—ETFs are less likely to trigger capital gains taxes that must be passed on to the fund holder.

Trusts are estate planning tools

They’re used as a way to designate assets to beneficiaries while skirting certain taxes and maintaining one’s privacy. They can hold a wide range of assets, including cash, real estate, stocks, businesses, and more.

Some multibillion-dollar pension funds depend on hedge funds

Pensions are responsible for safeguarding the retirement plans of many corporate and government employees alike. Pensions differ from 401(k) plans and sometimes rely on alternative assets, like hedge funds, to insulate their portfolios of billions of dollars from volatility in financial markets. Read the case top pension advisor Cambridge Associates makes for hedge funds.

Annuitants have to pay income taxes on the annuity payments they receive, unless their annuities are folded into a Roth IRA

In most other cases, annuities grow tax-deferred until annuitants start to receive payments. Those payments are then taxed as regular income. Nonqualified annuities, which are bought with after-tax dollars, have different rules.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

Permanent life insurance offers access to a cash value account, which is like a savings account

It's a huge perk of purchasing permanent life insurance. Policyholders often use these accounts as another investment tool. In this podcast episode, NerdWallet experts break down how you can use your cash value account to invest, plus the pros and cons of this tactic.

Financial solutions for HENRYs

The term HENRY stands for "high earner, not rich yet." People who fall into the high earner, not rich yet category tend to have some significant blockers keeping them from accumulating wealth, such as lifestyle creep and student debt. This article outlines some financial planning advice specifically for those in the HENRY category—read it here.

529 plans can affect college financial aid

Income affects FAFSA financial aid determinations. FAFSA also takes 529 college savings plans into account. The percentage of savings it uses in its calculations depends on who owns the account (parent, student, or someone else). Other schools use a program called CSS to determine financial aid, and those determinations vary.

Savings accounts earn more interest and limit monthly transactions

While the checking account is many people's primary daily account, savings accounts can earn customers more in interest, though access to these funds is generally more limited. Customers can earn several percent interest in savings accounts compared to near-zero checking account rates.

Hawaii and New York have the highest tax burdens out of all US states, both exceeding 12% of income

The term "tax burden" in this case refers to property, income, sales, and excise taxes as a share of total personal income. Alaska and New Hampshire have the lowest total tax burdens in the US, both falling below 6%.

About 88% of all homebuyers feel their home is a good investment

According to data from 2022, 50% of homeowners felt their home was a better investment than stocks. The financial benefits of homeownership are significant: From avoiding rising rents to tax advantages, this interactive article outlines several.

American Express runs on a 'spend-centric' model, using perks and merchant fees to drive profit

American Express cardholders tend to spend more money per transaction than other credit card users, which makes the interchange fees merchants have to pay to accept American Express cards worth it while incentivizing other companies to pay the interchange fee as well.

WellHub is a startup serving roughly 4 million people in 11 countries, providing broad wellness benefits to employees

Valued at $2.4B in 2025, the company helps workers get gym access and meditation apps, in addition to basic healthcare. Listen to the founder of the company, Cesar Cevalho, explain how he scaled the company with Jeff Berman.

Support groups are typically free, which makes them widely accessible

The groups are typically run by someone with the same illness or set of experiences and can provide clear, practical knowledge about navigating healthcare resources, bureaucracy, and more. Since they function on trust, however, there are no legal confidentiality prohibiting people from sharing what's discussed. What's more, group leaders may not be uniformly trained or certified.

Social Security is one of the most popular government programs

In a recent Pew Research Center survey of US adults, 79% said Social Security benefits shouldn’t be reduced in any way. This view is broadly shared across ages, races, political affiliations, and income brackets.

H-1B visas let US employers hire skilled foreign professionals in specialty occupations

The H-1B is the main US program for temporary high-skilled workers, covering roles in technology, engineering, medicine, and finance. Issued for up to six years, it often serves as a pathway to permanent residency.

Calculate how much of your tax dollars go to each federal program based on your income, filing status, and number of children

While the first exchange-traded fund (a 'basket' of different assets that can be bought and sold on a stock exchange) in the US only launched in 1993, the global ETF market has grown to more than $10T in the short time since.

Take a 3D tour of the Hajj, Islam's annual pilgrimage to Mecca, undertaken by over 1.5 million Muslims.

Dozens of S&P 500 stocks, including Coca-Cola and Walmart—known as the dividend aristocrats—have increased dividends every year for 25 years

Telehealth demand for GLP-1s for weight loss is booming as consumers seek easier access.

Experimental hantavirus vaccines and therapies, still under development, have long been funded by the US military.

SpaceX's S-1 or 'prospectus' revealed many previously unknown details about the company, including its unprofitability despite doing $18.7B in revenue in 2025, exactly how many voting shares Elon Musk will have in the company (roughly 85%), and more.

Up to a million Girl Scouts sell about 200 million cookie boxes every spring, generating $800 million, largely because refusing a child is frowned upon

US housing costs have risen by roughly 175% between 1991 and 2026—but a growing number of Gen Zers are becoming homeowners anyway. In 2025, 4% of homebuyers were Gen Z, up from 3% the year before.

Despite being favored by 87% of Americans, Congress does not have term limits.

US consumers collectively owe more than $1T to credit card companies—almost as much as they owe in auto loans.

Larger animals like giraffes, elephants, and blue whales have developed a unique defense against cancer, a phenomenon known as Peto's Paradox

SpongeBob exemplifies Aristotle's philosophy for living well because he understands that happiness doesn't come from external factors like money, recognition, or power.

In 2026, Finland was named the world's happiest country for the ninth consecutive year based on its wealth, social safety network, and high life expectancy, among other factors.

Explore fun facts from the USPS, including unique post office buildings, a stamp that traveled past Pluto, and more.

Poison ivy can cause rashes year-round since all parts of the plant contain urushiol, the oil that triggers our allergic response.

Art theft is the third-largest source of criminal revenues worldwide, thanks in part to the subjective nature of valuing a work of art.

Power lines are dotted with large, brightly colored balls to improve the visibility of these thin wires to helicopters and small planes and help prevent potential crashes.

Objects can be 3D printed with light by projecting 2D computerized tomography (CT) scans onto rotating cylinders of resin, which solidify upon exposure.

Doctors differentiate between a phobia and fear by asking patients whether their fear interferes with their day-to-day activities.

Hurricanes, which rely on air consistently spinning in the same direction, cannot cross the equator because air curves in opposite directions north and south of it.

In 1939, baseball star Lou Gehrig delivered his inspirational 'Luckiest Man' speech after retiring due to the health condition that now bears his name.

Clever Hans was a 1900s horse that was believed to be able to solve math equations, tell time, and read and comprehend German, until a psychology student discovered how he got his answers.

While atoms are normally made of protons, neutrons, and electrons, exotic ones have been built with antimatter—alternate versions of normal matter that live for fractions of a second and are about a billion times as rare.