Sometimes, huge expenses seem to hit you out of nowhere. For instance, you could be taking your child to his regular cleaning appointment at the dentist when suddenly you’re hit with the news that the little guy is going to need braces. Oh no! There went your hopes of ever getting your finances under control.
Orthodontic work can cost you thousands of dollars. You have to purchase the appliance, make multiple visits to the orthodontist to have it adjusted, and pay to replace any pieces that break along the way. Now, you know that your little guy is certainly worth the expense, but the more important issue is where you will get the money.
Fitting orthodontic expenses into your budget may seem impossible at first glance. You might think to yourself that there just isn’t room for them. Fortunately, depending upon when you find out that someone in your family will be needing braces, there are several ways to lighten the blow to your family’s finances.
Start a savings account – Many times a dentist can tell you that your child is going to need braces years before his permanent teeth start coming in. If that’s the case, start putting money away now for his future dental needs. A few dollars each week can quickly add up over the years. By the time you’re ready to start your child’s dental work, you may have enough cash stowed away to pay for the bulk of the expense.
Join your employer’s cafeteria plan – Some employers allow you to contribute money to the company’s cafeteria plan, pre-tax, for medical and dental expenses. Then, as you incur costs, you submit those receipts to the company and receive a reimbursement check from the plan. Depending upon the tax bracket you and your family reside in, you could save around 20% of your orthodontic costs by not having to pay income taxes on that amount. Bear in mind, however, that you will need to carefully time your contributions to the account to ensure that you use all of your contributions in a timely manner. Pay a visit to your company’s HR/Benefits guru to plan your contributions.
Add your child to the company’s dental plan – You probably have to pay to add your child to your employer’s dental coverage, but the cost of those additional premiums will be much lower than the amount the insurance company will pay for your child’s premiums. You will also enjoy the added benefit of receiving the discounted rates your dental insurance company has negotiated with your orthodontist, if you see an orthodontist who is in your dental network. Waiting periods may apply, anywhere from a year to two years, though so you may have to enroll your child in the plan quite some time before you actually plan to use it for anything more than regular cleanings. Again, visit your company’s HR/Benefits person to make sure you understand all of these details.
Ask about a payment plan – Finally, if your child has to have braces right now, you can always ask your orthodontist if he has a payment plan. Some will finance it right there at the office. That’s the best alternative. Basically, you pay for the braces over the course of the next year or so without having to pay interest. More frequently, however, your dentist will refer your to a finance company. Be careful, though; the interest charged here can be pretty steep. You may be better off – you know I hate to say it – paying with a credit card with a low rate. If this is the only alternative available to you, be sure to pay this debt off as quickly as possible. You don’t want to be paying for the little guy’s braces when he’s not a little guy anymore.
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