Yesterday my 5yo niece called me to tell me she had slipped getting up from the table, cracked the bottom of her chin on the table, split it open, and had to get stitches under her chin, so now she is going to have a scar under her chin just like her Aunt (me).

After telling me about how the stitches really didn't hurt because they were "butterfly stitches" and that she was very brave and did not cry so her mommy bought her a toy, we started talking about her new allowance. She became very animated and explained how when she gets her allowance ($3) she puts one dollar in the giving bank, one dollar in the college bank, and one dollar in the spending bank (which she saves up to buy something like a toy).

I asked her what her favorite thing was about getting an allowance. I completely expected her to say that it was when she got to go buy a new toy. But she said: "I Like to put Money in my Bank!" And of course I replied: "Me too, xxx! I like to put money in MY bank!"

Now we have 2 things in common.

I know from the comments left after I posted about setting up my HSA that some of you are interested in them.

So .... here's a little tip that I learned the hard way and that I hope will help you:

The first year you have set up an HSA, you have to pro-rate your contribution based on how long you had your HDHP.

For example, I had my HDHP for only the last 2 months of 2007, so the maximum I was allowed to contribute to my HSA (for a family) was:

$5,650 (maximum allowed 2007 contribution) / 12 months of the year x 2 months I had the HDHP = $942

But of course this did not dawn on me and I over-contributed. (Got too excited about the potential tax savings, I guess.) As MonkeyMama would say - "Doh." Rookie mistake.

Fortunately, it was not a really big deal. As soon as Turbo Tax told me I had made a "boo-boo" I contacted my HSA bank, and filled out a Distribution form for the Excess Contribution, and they sent me a check.

If you open an HSA this year, save yourself a step and pro-rate your contribtuion!