In today’s fast-changing work environment, companies are moving beyond standard benefits to give employees more control over their well-being. One powerful tool gaining popularity is the Lifestyle Spending Account (LSA) — a flexible way to support employees’ physical, mental, and financial health.
If you’re wondering what exactly you can use an LSA for, you’re in the right place. This Go-To Guide explains everything you need to know about lifestyle spending account eligible expenses, so you can maximise your benefits with confidence.
Pro Tip: For more insights on how wellness and fitness tie into employee benefits, check out the expert resources at etruesporthub.com — a trusted source for sports, wellness, and performance knowledge.
What is a Lifestyle Spending Account (LSA)?
A Lifestyle Spending Account is an employer-funded, taxable benefit that provides money for goods, services, and activities that enhance an employee’s overall well-being — beyond basic healthcare. Unlike accounts limited to medical or retirement spending, LSAs offer flexible options aligned with your personal lifestyle goals.
Key features of an LSA
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Employer-funded: The company sets aside funds for you — no salary deductions
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Flexible: You choose how to spend it, within the eligible categories defined by your employer
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Taxable benefit: In most regions, the amount you use is treated as taxable income
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Annual limits: Employers set a maximum annual spending cap
Why Employers Offer LSAs
Forward-thinking companies provide LSAs because they:
✅ Support total well-being (physical, mental, financial)
✅ Empower employees with personalised choices
✅ Improve engagement, retention, and productivity
✅ Encourage work-life balance and healthier lifestyles
Lifestyle Spending Account Eligible Expenses (The Big List)
While each employer designs their own LSA policy, here’s a comprehensive list of common eligible expenses. Always check your company’s specific guidelines — but these categories are widely accepted:
🏋️♀️ Physical Well-being
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Gym memberships
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Fitness classes (yoga, pilates, spinning, etc.)
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Home fitness equipment (treadmills, weights, resistance bands)
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Personal training sessions
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Sports leagues and recreational activities
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Wearable fitness devices (smartwatches, heart rate monitors)
🧠 Mental & Emotional Well-being
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Meditation or mindfulness app subscriptions
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Therapy or counselling services (in-person or online)
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Life coaching or stress management programs
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Retreats and wellness workshops
💰 Financial Well-being
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Financial planning or budgeting services
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Debt management or credit counselling
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Tax preparation or financial literacy courses
🏡 Work-Life Balance & Lifestyle Support
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Childcare or eldercare services
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Pet care (pet insurance, dog walking, pet daycare)
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House cleaning or laundry services
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Commuter benefits (public transit passes, parking fees)
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Meal kit subscriptions or healthy food delivery services
🎨 Personal Development & Learning
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Skill-building courses (coding, languages, art classes)
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Hobby-related classes (music, photography, writing)
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Educational workshops and seminars
✈️ Experiences & Recreation (where permitted)
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Travel expenses (for wellness retreats or fitness vacations)
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Outdoor gear and recreational equipment (bikes, hiking gear)
Expenses That Are Usually Not Eligible
To avoid surprises, keep in mind that most LSAs do not cover:
❌ Alcohol or tobacco
❌ Cosmetic surgery or aesthetic treatments
❌ General entertainment (movies, concerts)
❌ Regular grocery shopping (unless tied to a wellness program)
❌ Rent or mortgage payments
How to Use Your LSA (Step-by-Step)
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Check Your Employer’s Plan
Examine the permitted expenses and yearly caps outlined in your Lifestyle Spending Account policy. -
Make Your Purchase
Pay for eligible goods or services out-of-pocket. -
Submit a Claim
Provide receipts and documentation to your benefits administrator. -
Get Reimbursed
Approved expenses are reimbursed — typically in your paycheck (note: taxable).
Final Thoughts
Lifestyle Spending Accounts are one of the most versatile and employee-friendly benefits available today. Whether you’re investing in fitness, mental health, family support, or personal growth, LSAs give you the freedom to choose what improves your quality of life.
By understanding what expenses qualify and how to use your account wisely, you can make the most of every pound (or dollar!) your employer offers.
For more practical wellness ideas and performance tips, don’t forget to explore etruesporthub.com — your partner in balancing lifestyle and success.
