Many employees misuse HSAs and FSAs because they lack clarity about expected expenses and contribution choices. Learn how paycheck guidance reduces confusion and prevents wasted benefits dollars.

Pre-tax accounts like HSAs, FSAs, and dependent care funds are among the most valuable benefits employers offer. They reduce taxable income, help employees manage healthcare costs, and create meaningful household savings. Yet they are also some of the most misunderstood benefits in the entire paycheck system.

Thirty-eight percent of workers do not understand the difference between HSAs and FSAs. And that confusion leads directly to financial loss:

• Twenty-six percent of FSA contributors forfeited unused funds last year.
• Thirty-seven percent feel unsure about how much to contribute.
• Nearly a quarter of HSA contributors did not save enough to cover their expected expenses.
• Forty-nine percent never use dependent care benefits at all.
  
  

Every unused dollar is wasted potential. These mistakes reduce take-home pay, increase financial stress, and diminish the perceived value of your benefits investment.

This is not an employee knowledge issue. It is a fragmentation issue. Workers receive advice from multiple platforms, each focused on its own slice of the financial picture. No one is connecting the dots.

Employers can change this by shifting from benefit communication to personalized, paycheck-centered guidance. When employees receive recommendations tailored to their expected out-of-pocket costs, household needs, and tax picture, they make confident choices. They reduce taxable income, maximize savings, and avoid costly forfeitures.

Turn confusion into contribution. Integrated guidance unlocks the full value of health and dependent care accounts. Download the SAVVI Financial Research Report, Every Dollar Counts, to see how expert level guidance boosts utilization and employer ROI.  Or simply click here to schedule a 30 minute chat.

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*Source: 2025 Every Dollar Counts, https://www.savvifi.com/spotlight

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