Image of the Motivosity mascot, Carl the Yeti, with a cake and calendar meant to recognize employee milestones.

What Is a Lifestyle Spending Account?

July 22, 2025

Erika Rahman

Understanding Lifestyle Spending Accounts (LSAs)

Lifestyle Spending Account (LSA): An employer-sponsored benefit that empowers employees to spend funds on products or services that matter to them.

Purpose of LSAs

Lifestyle Spending Account vs. Other Benefit Accounts

How a Lifestyle Spending Account Works

Image of a flowchart that shows how lifestyle spending accounts work.

What Can an LSA Cover? Expense Categories and Examples

Physical Wellness

Mental & Emotional Health

Family & Life Support

Professional Growth

Financial Wellness

Remote Work & Everyday Life

Why Offer a Lifestyle Spending Account

Common Challenges and Considerations

How to Design and Launch Your Program

Image of lifestyle spending accounts in Motivosity and an employee redeeming her employee rewards.

Empowering Your Team with Flexible Benefits

Image with the Motivosity mobile app that shows lifestyle spending accounts.

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About the Author

Erika Rahman is a Product Marketing and Content Specialist at Motivosity. She studied marketing and business management at Utah Valley University. Erika has a broad background—from optometry to trade school administration—giving her a love and understanding for people across industries. She grew up in Northern California and Colorado, and currently calls the Utah slopes home.

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