Budgeting – Page 2 – Costco Benefits

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OCTOBER 2023

Transform your smile — for less

Smile! Or would you rather not? With virtual visits, FaceTime, and selfie-friendly apps like Snapchat and Instagram, we’re all spending more time staring at our faces, and, in turn, our teeth. According to Dentistry Today, that behavior has intensified self-esteem issues regarding crooked teeth. And it’s driven more adults to seek orthodontic care.

Luckily, orthodontia is increasingly affordable. There are innovative orthodontic solutions to help you get the smile you want. And your Costco dental plans are here to help, with orthodontia benefits* for you and your covered family members.

Looking for more? Find other articles below

Braces or aligners?

Braces have been the traditional form of treatment used by orthodontists for decades. Today’s streamlined braces come in a variety of models — stainless steel, tooth-colored ceramic and those that attach behind the teeth.

Clear aligners are plastic replicas of your teeth. Wearing them puts gentle pressure on your teeth, ever so slightly repositioning them. Aligners are virtually invisible and can be removed when you eat, brush and floss. Invisalign^® was the only clear aligner treatment available for years. But today, there are many options.

While braces are often better for kids and teens, especially if they have a severe crossbite, overbite or underbite, neither option is necessarily better than the other. The choice is based on your goals and your lifestyle. But some clear aligner options do present advantages, both in terms of their convenience and cost.

At-home treatment

These days, monthly appointments to adjust your braces aren’t a requirement to get a better smile. New online clear aligner services allow people to complete treatment in the comfort of their homes. These options work best for people with simpler corrections.

Some of these services supply you with materials to do at-home impressions of your bite. Once done, you send them in to be reviewed by a licensed dentist or orthodontist. Others work through a certified dentist who creates a 3D image of the inside of your mouth. After your impressions are reviewed, you’re sent a customized set of aligners that will gradually shift your teeth into place.

This do-it-yourself option is a huge advantage for many people, especially those living in the 60% of U.S. counties with limited access to an orthodontist’s offices. But there are other advantages, including:

Cost. Traditional teeth-straitening solutions typically cost between $5,000–$9,000. These new orthodontic options, on average, cost between $2,000 and $3,000.
Duration. Depending on complexity and your lifestyle choices, these treatments can last, on average, 4–5 months. Treatments using metal braces can take years.
Support. Licensed dentists and orthodontists provide virtual support and oversight from beginning to end through dedicated, user-friendly apps.
Convenience. Supplies are delivered directly to your home.

Contact your dental plan to find out which options are available to you.

Save more with an HCRA

Only available on the Mainland and in Hawaii

With your Costco benefits, you can open a Health Care Reimbursement Account, or HCRA. This account, administered by PayFlex^®, allows you to set aside pre-tax dollars to reimburse yourself for expenses your plan doesn’t cover. You can use your HCRA to pay eligible orthodontic expenses for yourself and your covered dependents. You can also download the PayFlex Mobile^® app to manage your expenses on the go.

Budget for your dental costs

Costco offers additional financial well-being tools for all locations, such as SmartDollar^®, a free digital program that can help you plan for major dental expenses. This program also offers one-on-one financial coaching to talk you through the process.

*Review your plan documents for benefit details.

Sources:
Dentistry Today. 2022 trends to watch in oral & orthodontic care.
American Association of Orthodontists. Braces vs. clear aligners?

Your Costco dental plan and HCRA (where available) can make orthodontic treatment accessible for you and your covered family members. For resources to help, see below.

Money 101: Kids’ edition

You teach your children about safety, physical health, good study and work habits, acceptable behavior, and more. You want to instill in them all the things they’ll need to function well once they leave the family nest.

So why not include lessons on how to earn and manage money? After all, it makes sense for everyone to learn to spend wisely, save and invest what they earn.

The best way to start teaching your children about money is to show them how you handle it. As soon as your children are old enough to understand, include them in your family’s budgeting, planning and saving discussions. As a bonus, your kids will know what to expect in terms of what the family can afford. They’ll also learn how their own choices can help them get things they want.

Be a role model for your children

Make sure your own financial behavior is responsible. If they see you spending money on things you don’t need instead of paying your bills, they may grow up thinking that’s an acceptable way to handle finances. 

If you use credit cards, make sure your kids also see you checking your credit card statements and paying your bills on time. Show your children that those little plastic cards aren’t magical sources of free money. Let them see how much interest you pay, too.

Help them practice decision-making

Let your children manage their own funds. When they get old enough, help them open and maintain a bank account. Whether they earn an allowance or income from a part-time job, help your kids make good decisions with their funds. 

A lesson about saving on taxes

As every grown-up knows, taxes can be complicated. But it’s never too early to teach your children an important lesson: it pays to take advantage of the tax benefits you have.

For example, with a reimbursement account, administered by PayFlex^®*, you can set aside pretax dollars and pay yourself back through a Health Care Reimbursement Account or a Dependent Care Assistance Plan.

The Health Care Reimbursement Account (HCRA) allows you to reimburse yourself for health care costs your medical plan doesn’t cover, such as out-of-pocket costs for medications and copays. The Dependent Care Assistance Plan (DCAP) lets you set aside pretax dollars to reimburse yourself for eligible child (under age 13) and elder care expenses necessary for you and your spouse to work, including child care and nursery/preschool costs.

Talk to your kids about how these accounts help your family save money on taxes. And remember to enroll in an HCRA or DCAP during Annual Enrollment.

*Available in Mainland and Hawaii.

Give your kids the tools to succeed

Encourage your children to save, and guide them in setting up a personal budget. Teach them how to compare prices before buying a pair of sunglasses, a skateboard or something else they want. Show them how much an investment account can grow over time by reviewing your retirement account’s growth together. That way, they can see the importance of saving even a small amount as soon as they start working as adults. 

If they make a money mistake, don’t be too quick to bail them out. Instead, help them learn from it so they’ll make a better decision next time. As they get older, you can even show them more details about your family’s finances. For example, you can explain how interest can add up when you don’t pay off your credit cards each month or why making dinner is easier on your budget than ordering take-out.

Your kids can learn from all sorts of activities, including:

Counting the coins in a piggy bank

Creating a budget on paper or online

Checking monthly statements for charges for apps and subscriptions

Buying a used car and shopping for insurance

Opening a savings account

Researching how to finance their education

You can find teachable moments just about every day. It’s never too early to start setting your children up for financial success. 

Source: Resources For Living. Teaching your kids about money.