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Whether you've had a Costco membership for years or are a new member, nothing says that you must continue shopping at Costco if it no longer works for you. For a Costco shopper, it's all about leaving more money in your checking account and enjoying the shopping experience.
Here, we dive into those (and other) reasons to take a closer look at your Costco membership and decide whether it's still working for you.
1. You've given up your car
We may not all be wearing masks in public anymore, but we're still experiencing fallout from the pandemic. One way the pandemic has hung around is through stubbornly high prices. While overall inflation has slowly cooled, the cost of some critical products and services has continued to climb. Auto insurance is the perfect example. Between July 2023 and July 2024, rates rose a painful 18.6%.
As more people have trouble finding affordable auto insurance , it's fair to assume that many have (or will) simply stopped driving. If you've given up your vehicle due to costs or because you no longer feel safe driving, you may find that a Costco membership makes far less sense than it once did.
Although you can continue shopping on Costco.com, you'll quickly learn that items sold online typically cost more than those sold in-store. While the base price may be similar, shipping and handling fees are factored into the online prices. According to the Krazy Coupon Lady, once those extras are factored in, the cost of a single item can be as much as 49% higher.
Unless you know someone willing to drive you to the warehouse store or you only buy enough to carry back home on public transportation, October might be a good time to cancel your membership and save some money.
2. You've grown frustrated with the membership-sharing crackdown
We're all watching our finances closely these days. And for some folks, one way of saving money is by sharing a Costco membership card. Perhaps you loan yours to a relative, or a neighbor shares theirs with you. Either way, Costco has cracked down on the practice of membership sharing and aims to stop it by paying more attention to identification.
The retail giant recently announced that shoppers will have to start scanning their membership cards at the entrance of Costco stores instead of just showing them to an employee. You'll need to scan your card to enter the store if you have an active membership.
If your card doesn't include a photo of you, you'll also need to provide a valid photo ID. Shoppers without a membership card can only enter Costco with an active member.
In other words, the days of using your father-in-law's card without him present are almost over. If you've always been able to justify paying for a membership because of the number of people you could share it with, it may be time to rethink whether you want to be a member.
3. You can save more money elsewhere
Not everyone saves money at Costco. For example, if you find yourself throwing away produce you've purchased in bulk or allowing over-the-counter medication to expire because you couldn't use it up fast enough, you may be wasting money.
There's also the issue of credit cards. Today's credit cards do far more than allow us to buy something immediately and pay for it later. For example, the best cash back cards also refund a percentage of our spending and offer some pretty sweet perks, like purchase protection.
One way we've found to save money on groceries and gasoline is to use a credit card with cash back rewards to make purchases. Click here to see our list of recommended cash back credit cards to apply for one today . We may not save upfront, but each purchase puts a little more into our credit card account -- and that's cash we can use when we need it most.
Let's say you regularly use a credit card at restaurants, grocery stores, and gas stations. Fortunately, you find a card that rewards you with 5% cash back each time you swipe it in one of those places. Spending an average of $150 weekly on groceries at Costco would net you $390 yearly ($150 x 52 = $7,800, and $7,800 x 0.05 = $390).
Putting $35 into your gas tank at a Costco gas station each week would add another $91 to your cash back total ($35 x 52 = $1,820, and $1,820 x 0.05 = $91). Consider what you can do with an extra $481. You could cover the cost of your annual membership, buy three weeks' worth of groceries, or save it for a big purchase you've had in mind.
With roughly 128 million members worldwide, Costco will be OK regardless of what you do. The only thing that truly matters is doing what's right for you and your household.
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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. Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy .
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