For young adults just entering the workforce, saving up for future medical expenses is not typically a top priority. Therefore, embracing the idea of a health savings account (HSA) can be difficult when they have just begun to support themselves and know little to nothing about health savings accounts. However, regularly contributing to a health savings account can be a financially sound option. 
         Young people in their 20s are generally in good health and have low health-care costs. Hence the timing is perfect to start a health savings account in conjunction with a high deductible insurance plan. While the high deductible looks unappealing, young people are less apt to meet the high deductible because they are healthier and have less medical expenses for which they would want a lower deducible. By contributing regularly to a health savings account with the money saved on the lower monthly premium, you are spending no more than what you would have spent with a lower deductible plan. 
         The advantages of the health savings account are that your money rolls over from year to year, tax-free, and the account is yours to keep even if you change jobs or health insurance. Contributions to a health savings account are tax-exempt and therefore are made through payroll deductions using pre-tax dollars or can be claimed as a deduction when you file your income taxes. In addition, if you choose to invest the funds in the health savings account, the earnings are tax-free just as the interest earned on the funds is tax-free. The money you save through the tax exemption is substantial if you allow the funds to mature. For example, if you put the maximum $2850 in the account every year for forty years, and you are in the 33% income tax bracket, you will save $37,620 in taxes, and $206,022.66 on tax-deferred growth. Even though your net contributions are $114,000, the value of the account with an 8% annual interest rate will be $738,311.08 in thirty years. 
         Opening a health savings account as a young adult forces you to learn more about health insurance. Since there is maximum annual contribution ($2850 for an individual) to the health savings account, people are more cautious about withdrawing from their savings and therefore pay more attention to health-care costs. Understanding your health insurance at a young age can only benefit you in the long run, and while this account may not seem essential when you are healthy, the future benefits of having these growing savings are immeasurable.