The workforce is getting younger. According to Credit Karma, millennials' average total debt is $48,611.  As of September of 2023, prices have increased by 3.7% compared to September 2022 according to the 12-month percentage change in the consumer price index — the monthly inflation rate for goods and services in the US. Inflation persists in diminishing consumer savings as consumer savings rate fell to 3.8% in Q3.

Unfortunately, this is impacting the younger generation more than older generations. In fact, more than 7 in 10 Gen Zers and millennials are saving less due to those price pressures, compared with 66% of Gen X and 63% of baby boomers, according to Bankrate. Younger generations are seeking additional ways to save for the future other than just a 401(k) or Roth IRA account.

The advantages of HSAs

HSAs allow organizations to utilize pre-tax funds for employee health coverage, offering up to $3,500 for individuals and $7,000 for families. The flexibility to carry over and accumulate unused funds from year to year is extremely valuable. It's important to note that these funds can only be utilized with an ACA-qualified High Deductible Health Plan (HDHP) which is decided by the insurance carrier and then filed with the state. HSAs can cover expenses such as deductibles, copays, prescriptions, out-of-network costs, and other charges.