If you have a flexible spending account through work, there's a decent chance you're sitting on a few hundred dollars you'll lose if you don't spend it soon.
Most healthcare FSA funds must be used by December 31, and unlike a 401(k), this isn't money that follows you into next year.
Use it or lose it is the actual rule, not a scare tactic.
Your FSA is funded with pre-tax dollars, so you saved money on taxes when you set it aside.
Miss it and that cash simply vanishes from your account — it doesn't get refunded, and your employer keeps it.
For households already stretched by grocery bills and rent, that's real money evaporating.
There's one piece of good news that trips people up every year.
Some employers offer either a grace period of up to 2.5 months into the next year, or a carryover that lets you roll a limited amount forward.
The catch is that not every plan includes these features, and the rules vary.
You have to check your specific plan documents or call your benefits administrator — you can't assume.
So what actually counts as an eligible expense?
Prescription glasses and contacts, dental work, copays, bandages, thermometers, sunscreen, menstrual products, and even some over-the-counter medicines now qualify.
You can also stock up on items you'll use eventually, like first-aid supplies or contact lens solution, to burn down a balance without wasting it.
The deadline also collides with a busy season.
Stores like Walgreens, CVS, and Walmart often run FSA-eligible promotions in December, and online marketplaces have dedicated FSA storefronts that flag which items qualify.
Just confirm the product is eligible before you buy, because a non-qualifying purchase can get rejected and leave you scrambling.
One more thing worth knowing: if you're worried about losing money, you can usually submit claims for expenses you already paid out of pocket earlier in the year.
Dig through receipts from doctor visits, prescriptions, or dental cleanings.
Many people forget they can reimburse themselves retroactively, which is often the fastest way to zero out a balance.
If your employer offers a carryover, find out the cap before you panic-spend.
Otherwise, treat the next few weeks like a countdown and use the money on things your household genuinely needs.
Losing it isn't a personal failure — it's a system designed to reward people who track deadlines, and most of us are busy.
The smartest move is to log into your account today and see the actual balance.
Then make one list of needs and one of stock-up items, and knock them out in a single trip.
Final Thoughts
A little planning now beats watching that money disappear in January.