Money Management

Health insurance can be really expensive, even when it’s subsidized. Read on to learn more. 

Health insurance coverage is something everyone needs. Without it, you might end up owing thousands of dollars in medical bills following a single injury or illness. To put it another way, not having health insurance could force you to deplete your savings account and upend your finances.

Now, the good news is that many employers offer subsidized health insurance as a workplace benefit. So those seeking coverage don’t necessarily have to cover 100% of the cost of their premiums themselves.

But recent data from the Kaiser Family Foundation finds that the typical worker with employer-sponsored family health coverage is paying a whopping $6,575 per year for their share of their premium costs. That’s almost a $500 increase from last year.

Meanwhile, for individual health coverage, the typical worker is spending a little more than $1,400 per year. That’s about $75 more than a year ago.

If you’re buckling under the weight of health insurance premiums, the good news is that there may be steps you can take to pay less. You might also be able to offset your costs by signing up for tax-advantaged health spending accounts.

Consider a high-deductible plan

In the world of health insurance, premiums and deductibles tend to have an inverse relationship. So if you’re willing to go onto a high-deductible health insurance plan, which may be an option through your employer, then you might save some money on your premiums.

This strategy, however, is best for people who don’t tend to see the doctor a lot during the year. If you’re part of a family with kids, it may not result in much savings.

But if you’re single and only tend to go to the doctor once or twice a year, then it may be worth it to raise your deductible by, say, $1,200 if it means saving $1,000 on your premiums. If you’re only forced to pay $400 toward your deductible, you’re still coming out ahead by $600.

Save for healthcare in the right accounts

Opening a health savings account (HSA) or flexible spending account (FSA) could help you save on taxes when paying for healthcare expenses like copays and medications. Both accounts let you contribute pre-tax dollars, so you’re protecting a portion of your earnings from the IRS.

With an HSA, you can invest funds you don’t need right away to grow your balance and enjoy tax-free gains and withdrawals. You also don’t have a deadline to use up your balance. With an FSA, you must use up your funds by the end of your plan year, and you can’t invest the money you have in that account.

HSA eligibility hinges on being enrolled in a high-deductible health insurance plan. In 2024, that means an individual deductible of $1,600 or a family deductible of $3,200.

You should also know that you generally cannot have an HSA and FSA at the same time, though some employers offer a limited-purpose FSA in conjunction with an HSA. If you have one of these accounts, you may be able to use it for specific expenses, like dental care.

It’s unfortunate that health insurance is so costly these days, even when you’re getting your premiums subsidized by an employer. But the amount you’re forced to spend on medical care might well exceed your premium costs if you decide to go without insurance. So no matter what you do, don’t make the mistake of forgoing coverage altogether.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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There are more than 35,000 dollar stores in the U.S. Keep reading to learn more about how it can pay to shop at one. 

If it seems as though you’re passing a dollar store every few blocks, you’re not imagining things. More than 37,000 dollar stores are spread across the U.S. They operate under names like Dollar General, Dollar Tree, and Family Dollar. To put that number in perspective, Walmart has around 4,717 stores located in the U.S.

To be clear, dollar stores would not exist if they weren’t so popular. In many cases, dollar stores are a financial lifeline to households watching every dollar in their checking account. Big-chain retailers like Dollar General, Dollar Tree, and Family Dollar recognized when it was time to swoop into areas where the need was greatest.

No retailer is perfect, but here are four reasons to shop at the dollar store of your choice.

1. You can save money

It’s safe to say the majority of dollar store shoppers are there to save money. However, that doesn’t mean every item in the store represents the lowest price in town. It pays to have a shopping list and to know how much the items on your list would cost at another nearby store. There are some pretty great apps available to help you compare prices before you leave home.

Still, for the savvy shopper, there are bargains to be had. According to The Washington Post, here are some of the easiest ways to save money at a dollar store:

Most dollar stores accept manufacturer coupons. Cut out paper coupons when you run across them, and check for digital coupons on the store’s website or app.Speaking of websites, see if the dollar store you’re visiting sells its products online. You’ll save time and the temptation to impulse shop.When you find a great bargain, stock up. True bargains don’t last long.No matter how low products are priced, resist the urge to buy anything you don’t need.

2. It’s fun

One of the best things about shopping at a dollar store is the rotating stock. There always seem to be new things on the shelves to look over. Sure, stores keep items that have sold well for them in the past, but at the same time, they bring in new and different inventory.

If you have a favorite dollar store and you’re on social media, check to see if there’s a dedicated page where shoppers share insider secrets. For example, if you’re a big fan of Dollar General, there may be a Dollar General page you can visit to get ideas and share what you’ve found.

3. Dollar stores work well for small households

As of 2020 (the latest U.S. census), 27.6% of U.S. households consisted of one person. A great thing about shopping at a dollar store is that some of their products are specially packaged to be smaller. Not only does the smaller size help keep costs down, but it also means a single-person household is more likely to be able to use the product up while it’s still good.

4. Seasonal items are often a steal

Dollar stores offer more than batteries and eyeshadow imported from who-knows-where. They’re also a great place to pick up items that fit the season. For example:

In spring, dollar stores are an ideal place to buy small planters and yard decor.By late summer, stores are full of back-to-school items like pens, pencils, crayons, and notebook paper.In the fall, you’ll find plenty of spooky Halloween decorations and an aisle of candy for the trick-or-treaters.Around the holidays, you may be surprised to see holiday-themed plates, glasses, napkins, and anything else you’ll need to entertain.Year-round, dollar stores are a great place to pick up greeting cards, wrapping paper, and party favors.

You may not want to do all your shopping at a dollar store, but every dollar you save is a dollar more you can tuck away into a savings account.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Own a home? Read on to see why setting up a maintenance plan for your HVAC system could be beneficial. 

My husband and I bought a newly built home about 14 years ago. When we applied for our mortgage loan, we knew full well that we’d need to cover the cost of more than just monthly payments. We were aware that there would be property taxes, homeowners insurance, and maintenance to think about. So we did our best to keep our mortgage on the lower side by making a larger down payment.

The upside of buying new construction is that we went several years without having to pay for major repairs. A lot of the appliances and systems in our home had a warranty, so if something went wrong, we were eligible to have the issue addressed for free.

But now that my home is about 14 years old, things are starting to break down. In the past five years, we’ve had to replace our entire HVAC system, for example. And while Angi says the average cost there is $7,500, I can tell you that we shelled out a lot more than that for new heat and air conditioning.

In fact, replacing our heat was something we did very recently after a routine checkup revealed issues that led us to believe that our system would not make it through winter. And that’s one reason I’m glad we signed up for a heating system maintenance plan years ago when we did. Here’s why you may want to do the same.

1. You won’t have to think about maintenance

Maintaining your heating system is one of those things you may not remember to do. It’s not the same thing as mowing your lawn, where you’ll notice if your grass is clearly getting out of hand.

Under our maintenance plan, the company we use calls us annually to schedule our service. And they do it before winter so that if an issue does arise, we can address it before we’re potentially subjected to a freezing cold house.

2. You might not get charged a premium for a service call

Usually (though potentially not always), a benefit of signing up for a heating maintenance plan is that you’re entitled to free service calls when there’s a problem. This isn’t to say that repairs themselves will be free. But rather, you may not have to pay anything for a professional to come out and assess the problem.

Our HVAC company charges anywhere from $150 to $250 for a service call, depending on the timing of it. We had an issue a year or so ago that required a $75 repair, but because we were on the plan, we only paid $75. We didn’t have to pay just to have someone come out to the house. (As a point of distinction, when you’re charged for a service call, you pay a fee whether an issue is identified and fixed or not.)

3. You get priority in an emergency

When our heat went out years ago on an ultra cold night, we knew the timing couldn’t be worse. It was already after dark, and we figured that getting someone in quickly would be tough.

But because we were on a maintenance plan for our heating system, we got priority. And sure enough, a service person was at our door within a few hours to address the issue.

Usually, signing up for one of these plans bumps you to the front of the line when something goes wrong. And rest assured that if your heat is going to break, it’s probably going to happen on one of the coldest nights of the year, because life tends to be funny like that.

The few hundred dollars my husband and I spend on a maintenance plan for our heating system is worth it. Sure, it’s another expense we have to bear, but it has saved us a world of hassle through the years.

Whether you have a newer heating system or an older one, it pays to call different HVAC companies in your area and find out about their maintenance packages. For a few hundred dollars, you might buy yourself peace of mind, not to mention the maintenance your heating system needs to work well and last.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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