If you have a flexible spending account through work, there is a deadline on the calendar that most people ignore until it's too late.
Money set aside in a healthcare FSA generally has to be spent by December 31, or you risk forfeiting whatever is left.
For households already squeezed by grocery bills and rent, watching that balance vanish is a quiet budget leak that stings more than it should.
The rules vary depending on your employer, so the first move is to log into your benefits portal and check your plan's exact terms.
Some companies offer a grace period into mid-March.
Others allow a carryover of a limited amount into the next year, and some allow both.
The IRS sets the ceiling on how much can roll over, and that figure adjusts most years, so last year's number may not match this year's.
Where the deadline gets painful is at the intersection of inflation and everyday costs.
A $2,000 FSA that felt generous in January buys less by December, especially on over-the-counter medicine, contact lenses, and dental work that keeps climbing in price.
Meanwhile, credit card balances are near record highs, and rent has eaten a bigger share of paychecks, so families are less likely to have a cushion if they lose that money.
The good news is that eligible expenses go well beyond a doctor's visit.
Bandages, allergy pills, pregnancy tests, prescription sunglasses, and many first-aid items usually qualify.
Some plans cover menstrual products and breast pumps.
A quick trip through the FSA store or your plan's eligible expense list can turn a looming forfeiture into a stocked medicine cabinet for the year ahead.
If you wait until the last week of December to book a dentist appointment or order glasses, you may find the calendar full and the shipping slow.
Claims also take time to process, and a purchase made on December 30 may not clear before the plan year closes.
Receipts and documentation should be saved, because reimbursement requests can be denied if the paperwork doesn't line up.
For those with a dependent care FSA, the deadline works differently but still bites.
That account helps pay for daycare, after-school programs, and summer camp, and it has its own use-it-or-lose-it pressure.
Parents juggling rising childcare costs should tally what they've already paid and what's left, then check whether any upcoming bills can be submitted before the cutoff.
There's a bigger pattern here worth naming.
Wage growth has cooled, prices haven't, and interest rates have made borrowing more expensive.
Programs like FSAs are supposed to stretch a paycheck, but only if workers actually use them.
It's a reminder that money sitting idle loses value twice over, once to inflation and once to forfeiture.
Set a reminder now, not in late December.
Pull up your balance, match it against what you'll realistically spend, and book the appointments or order the supplies while there's still time.
Final Thoughts
A few minutes today can keep hundreds of dollars in your pocket instead of handing it back to your employer.