3 Signs You Should Not Renew Your Costco Membership Next Year

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Keeping your Costco membership isn’t the right move for everyone. Find out how to tell if you should continue paying to shop at Costco. 

Costco memberships start at $60 a year for a basic membership. It can be well worth the hit to your checking account if you’re using the warehouse club regularly and saving money.

But that’s not everyone’s situation. Some people have a Costco membership that shouldn’t. Be on the lookout for these three signs you shouldn’t renew your membership in 2024.

1. You’re overspending when you go to the warehouse club

Costco stores are set up to make you buy things you don’t really need. In fact, Costco’s recent earnings report revealed that the number of things people buy in each transaction at the warehouse club has gone up as the store strategically added 50 new, inexpensive impulse items to its assortment of products.

Costco’s floor plan also forces you to walk through most of the store to get to necessities, which increases the chances of unplanned purchases. And, of course, the store offers samples of food products, which inevitably leads to people tossing some of those tasty treats into their carts.

Unfortunately, it can be hard not to fall victim to these tactics and spend more than you should. I know personally, on my visits to warehouse clubs, I always end up with a few extra items in my cart — and if I have kids with me, then sometimes I end up with practically an entire extra cart full.

If you regularly have higher credit card bills because you’re buying things that weren’t on your Costco list, you may be better off not renewing your membership.

2. You’re throwing out a lot of bulk products

Close to 40% of all food in America is wasted, and more than $408 billion in food is thrown away annually. Unfortunately, the bulk-sized products at places like Costco can make this worse. If you’re buying an industrial-size box of cereal and eating only one-third of it, you’re wasting food and money.

Check your stock at home and see how much is expired and no longer good, and think back over the past few months at how much Costco stuff you’ve had to throw away. If you’re tossing a quarter or more of your bulk purchases in the trash because you can’t eat them fast enough, then keeping your membership isn’t the right choice and you’re better off not renewing.

3. Going to Costco is no longer convenient for you

Costco has a total of 867 warehouses as of November 2023. This means many people have a Costco near them, but not everyone. If you’ve moved or you find that going to Costco isn’t convenient, you may want to cancel your membership.

If you decide that sticking with Costco isn’t the right choice, turn off auto-renew if you have it set up. Instructions for turning off auto-renew can be found on the Costco website. You just sign into your account, and under the “Account” heading, you’ll choose the “Renew Membership” option, where you can remove auto-renew. Do this at least two days before your membership resets.

By not renewing your Costco membership, you can redirect the money you would have spent on your membership fees — and the money wasted on impulse buys or unused products — toward more important financial goals.

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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.Christy Bieber 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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