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I’m a fan of saving money. Since I appreciate great deals, I’ve been considering joining Costco. My closest club isn’t in the most ideal part of my city, but even if I stocked up on essentials every quarter, it could be worthwhile for me to become a member. Here’s why I’m considering joining before September.
A Costco membership will soon cost more
It currently costs $60 or $120 annually to be a Costco member. You’ll pay $60 for a Gold Star membership, while an Executive membership costs $120. The pricier Executive membership includes more benefits, like the ability to earn 2% rewards on eligible Costco purchases. Membership prices have stayed the same for many years, but that’s about to change.
The warehouse club recently announced it would hike membership fees on Sept. 1, 2024: A basic membership will cost $65 per year and an Executive membership will run you $130. That means those who join or renew their memberships before September could save $5 to $10 per year. Joining within the next few weeks could benefit my wallet.
Executive members will benefit from this upcoming change
The upcoming price hikes aren’t the only news Costco shoppers should know. The retailer also announced that beginning in September, the maximum rewards Executive members can earn each year will increase.
Right now, Executive members can earn 2% back on eligible Costco purchases, up to a maximum of $1,000 in annual rewards. However, the maximum yearly rewards cap will increase to $1,250 on Sept. 1, 2024. Paying an additional $10 for the ability to earn an extra $250 in rewards isn’t a bad deal.
A Costco membership could help me save on household essentials
In addition to joining before September to lock in existing membership rates, I’ve also been thinking about the savings I’m missing by not being a Costco member. I live in a two-person household, so some bulk purchases aren’t ideal for my family — like fresh fruit and vegetables.
But we have a lot of basement storage we aren’t using, and we spend a lot of money on essential household goods like garbage bags, cleaning supplies, zipper storage bags, and paper products. Buying these items at Costco could be a win for my checking account.
Let’s explore the potential savings I could get from stocking up on garbage bags at Costco instead of another retailer. Costco sells a 200-count box of its Kirkland Signature Flex-Tech 13-gallon Kitchen Trash Bags for $19.99, which works out to $0.10 a bag.
I frequently load up on household essentials at Target. I can buy a 100-count box of Target’s up&up UltraStretch Tall 13-gallon Kitchen Drawstring Trash Bags for $15.69. Each bag would cost nearly $0.16.
I’d save over $11 by purchasing the 200-count box of trash bags from Costco instead of getting two 100-count trash bag boxes from Target. This is just one example of how my family could save money by investing in a Costco membership.
Get more from your Costco membership
If you’re a Costco member or want to become one, you should do what you can to maximize the value of your membership. Shopping deals and earning rewards can help you do that.
Our favorite strategy to save money at Costco is to pay for your purchases with a credit card that earns rewards. Earning cash back rewards when you shop is an excellent way to get rewarded for shopping. Review our list of the best credit cards for Costco to find out more.
Top credit card to use at Costco (and everywhere else!)
If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.
Click here to read our expert recommendations for free!
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Target. The Motley Fool has a disclosure policy.
