The average employee leaves thousands of dollars on the table every year.
For parents specifically, the missed opportunity to leverage benefits designed with families in mind goes largely unclaimed. It just takes a few thoughtful adjustments during your open enrollment period. So let’s go through exactly what you may be overlooking!
The Dependent Care FSA: $5,000 in Pre-Tax Childcare
A Dependent Care Flexible Spending Account lets you set aside up to $5,000 per household per year in pre-tax dollars to pay for eligible childcare expenses. That includes daycare, preschool, summer day camp, before- and after-school care, and in-home childcare for children under 13.
In the 22% federal tax bracket, this saves you $1,100 in federal taxes alone before state taxes. Families in higher brackets typically save $1,500 to $2,000 or more.
The enrollment window is during open enrollment in the fall or when you first join your employer. Miss it, and you wait until next year. This is one of the most commonly skipped elections among working parents — not because people don’t want to save money, but because the fall enrollment window gets lost in the chaos of back-to-school schedules, hectic morning drop-offs, and busy lifestyles.
Set a calendar reminder for open enrollment right now.
Back-Up Emergency Childcare
Through providers like Bright Horizons or Care.com, many employers cover a set number of backup childcare days per year, typically between 10 and 20, at deeply subsidized rates, sometimes as low as $10 to $25 per day.
This benefit exists for exactly the sick-kid, school-holiday scenario that hits working parents constantly. Before you burn a vacation day or scramble to cover a gap, check whether your employer has a backup care program. HR departments consistently report that this benefit has some of the lowest utilization rates in the package because employees don’t know it’s available to them.
Tuition Assistance & Education Benefits
Section 127 of the tax code allows employers to provide up to $5,250 per year in tuition assistance, tax-free, to employees. This applies to undergraduate and graduate coursework, certifications, and professional development.
This benefit typically has conditions — you may need to stay employed for a period after completion, and some employers limit what you can study. But if you are considering a continuing education program, an MBA, or a certification course, check whether your employer will cover part of it before you pay out of pocket. Even partial coverage is significant.
Adoption & Fertility Benefits
These are the least known and often the most valuable for families building through non-traditional paths.
Many major employers now offer $5,000 to $30,000 in adoption assistance, reimbursing legal fees, agency fees, travel, and court costs. Fertility benefits, including IVF coverage, have expanded significantly in the last three years as companies compete for employees in a tight market.
If you are in the process of adoption or fertility treatment, schedule a specific conversation with HR. These benefits are rarely prominently advertised in benefits materials, and you frequently have to ask.
Your Life Insurance Coverage Is Probably Not Enough
The default employer-provided life insurance at most companies is one to two times your annual salary. For most families, that does not come close to covering the financial impact if a primary earner dies.
Check whether your employer offers supplemental life insurance, which you can add at group rates significantly lower than individual market rates. For a young, healthy parent, this is one of the most cost-effective ways to increase coverage.
Also, review your short-term disability coverage. If you are planning a pregnancy, note that short-term disability typically covers maternity leave at a partial salary, but you typically need to be enrolled before you conceive for the benefit to apply. This is the detail that catches people off guard most often.
How to Find What You’re Missing
Spend 30 minutes with HR or in your benefits portal asking these specific questions:
Do you offer a Dependent Care FSA? When is the enrollment window?
Do you have a backup childcare benefit? Which provider?
What is my current life insurance coverage, and what are my options to increase it?
Do you offer tuition assistance, adoption assistance, or fertility coverage?
You’ve already paid for and earned these benefits through your employment! Use them.
Parenthood Together — parenthoodtogether.com
