Thanks Lori! I have an HSA which rolls over each year, so there isn’t any worry about putting too much in and not spending it like with an FSA (flexible spending account). I have one of those for daycare and always try to underfund it – hate the idea of giving them free money!

We usually look at our health expense for the last year and factor in anything we know will come up in the next year (braces, LASIK, for example) in an attempt to come up with the appropriate amount. We underestimate just a little.

Good advice, Daria!