A flexible spending account (FSA) is one of several tax-advantaged financial accounts that can be set up through a cafeteria plan of an employer.

A dependent care FSA can be used to help pay for costly dependent care services, such as daycare for your child or adult daycare for a senior citizen.

It should be noted that funds not used by the end of the plan year are lost to the employee, known as the “use it or lose it” rule.