These US healthcare systems are effectively scams. Yes in theory they can save you money, however in theory there is no difference between theory and practice, while in practice there is.
I’ve only been at two jobs that offered an FSA but both had resources explaining clearly that it is use it or lose it. And my personal risk aversion is why I chose an HSA instead. But it seems like a good idea for people to be able to save money by saying “This isn’t really income, since I am confident it’s only going to a demonstratable health expense. So don’t tax me on it.” It’s like a business expense can be tax deductible, and you are in the business of living. But then you don’t get to take home extra money for being under budget. When used correctly, it’s a tool to drive down living expenses and is more efficient for lower incomes since it uses a flat max annual deduction.
I don’t want to victim blame people that lose money by overcommitting, but it’s not like this is in fine print. You can get short articles that explain it in simple terms just by googling “fsa” before committing thousands of dollars to something. If you don’t have much idea what your minimum spending on healthcare will be, just keep it as income for full freedom or use a different tax-advantaged option. It’s just meant to be an option for people with good awareness of budgetting to save some money.
The Downpayment Toward Equity Act (currently still in Congress, but already budgeted for) is meant to address the generational wealth gap you described, so there is hope. It would give a $25,000 grant to first-generation first-time home buyers.
I don’t think anyone should be ashamed of getting help from parents for buying a home. As you said, it is essentially an advance on one’s inheritance. Nepotism is favoritism for something intended to be merit-based.
People in the comments seem to think the barista likes supports tipping culture and resents customers who don’t tip, but that’s not the impression I get. He sympathizes with the awkwardness of the position and the tighter budgets people have, but nonetheless relies on tips for the meager amount they provide.
I hate tips as much as the next guy, but you should not protest by refusing to tip/undertipping in situations where there is a reasonable expectation of a tip. The only one who suffers in such a case is a low-wage worker. Rather, take your business somewhere without tips.
Matt Breunig on HSA ＆ FSA: The Welfare System Stole $2k From Me ( www.youtube.com )
These US healthcare systems are effectively scams. Yes in theory they can save you money, however in theory there is no difference between theory and practice, while in practice there is.
Welcome to the ‘nepo’ housing market: 40% of homebuyers under 30 get family money to cover their down payment ( archive.ph )
Definitely a trend I see around me (Europe, 30 years old)....
Got tipping rage? This barista reveals what it's like to be behind the tip screen ( www.npr.org )
Excerpt from the article:...