A spending account is a special, tax-free fund you can use for certain health care services. Think of it as an "expense account" you can tap into for costs ranging from doctor's office visits to prescription drugs to contact lenses.

Stretch your budget with tax-free savings.

Do you like getting a discount when you shop? Then a health care spending account may be just the thing for you. Using one of these accounts to pay for health care expenses such as doctor's office copayments and prescription drugs is a lot like getting health care on sale.

Here's how it works: You set aside money from your paycheck – before taxes are taken out – to pay for some expenses your health plan doesn't cover, like copays or deductibles, as well as some services not covered, like eyeglasses. Or maybe you have an account your employer puts money into. Either way, when you have a health care expense, you don't have to whip out your credit card or checkbook. Instead, you dip into a special spending account where you've slowly built up funds to pay for health care.

So where does the discount come in? When you put money in a spending account and use it only for health care expenses, you save money on taxes. Let's say Uncle Sam takes 20 percent of your paycheck for taxes – if you put $500 in a health care spending account, you save about $100 in taxes. Now that's a good deal. And since the money can go into your account gradually, you don't have to pony up a lot of cash at once – a nice thing if you're on a tight budget!