5 Signs a Costco Membership Is a Smart Financial Decision for You

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

Costco is great for some, but not right for everyone. Here are five signs that you could benefit from being a Costco member. 

Worldwide, 71 million households have a Costco membership, and each of those members once had a decision to make: Should I or shouldn’t I? Each potential member had to decide if a Costco membership would help them end each month with a little more money in the bank.

If that’s the crossroads at which you find yourself, that’s a good sign. It means you take your time making financial decisions. As much as members appear to love Costco, the warehouse giant is not for everybody. Here are five signs you may want to take the leap.

1. Buying in bulk makes sense

There are many reasons you might buy in bulk, including:

Your growing family could easily eat you out of house and home, and you need to save money.You’re not prone to food waste. What you buy is what you consume.You regularly donate to local food banks and plan to keep some of the food for your pantry but donate the rest.You regularly entertain and need access to low prices on food in bulk.

If you’re single, rarely entertain, and are concerned that food will expire before you have time to consume it, you may want to pass on a Costco membership. However, if you routinely find a way to use what you buy, it might be the right choice for you.

2. You’re into unique items

It’s possible to buy just about anything online these days, but it may also be more expensive than popping into Costco. Let’s say you decide to buy a 7-foot teddy bear for your nephew. That’s precisely the kind of item you’re likely to find at Costco. Or maybe you love nothing more on a Saturday morning than to curl up with a good book, a cup of coffee, and an authentic French pastry. Costco carries those pastries.

Simply put, Costco carries products you can’t find at your local grocery store (or toy store, for that matter).

3. You like tying several loose ends up at once

If you do not particularly enjoy running errands, Costco allows you to check off several tasks during a single trip. Let’s say you need to:

Pick up ingredients for a special dish to impress your friendsHave that eye exam you’ve been putting offSave on the sky-high cost of medication by refilling a prescriptionReduce the cost of filling your car by taking advantage of low Costco gas prices

It can all be accomplished during a single visit. And if you’re particularly organized, it will feel great to get so much done in a matter of hours.

4. You enjoy the hunt

Costco continually moves products around the store. Something once located on the aisle closest to the pharmacy is now several aisles away. That’s Costco’s way of getting you to look the shelves over and find new favorites to buy. After all, anything that inspires you to pull out your Costco Anywhere Visa® Card by Citi is good for business.

Not everyone enjoys the hunt, but if it sounds like fun for you, a Costco membership will likely be a good fit.

Apply now for the Costco Anywhere Visa® Card by Citi.

5. There’s not much competition

In some areas, Costco has little in the way of competition. There may be other grocery stores, but none that carry your favorites. There may be other tire stores, but none offer the same discounts. There may be other stores that sell electronics nearby, but none provide free tech assistance.

There’s a good reason that Costco had a renewal rate of 92.5% in the first quarter of fiscal 2023. Costco members appear to be happy with their experience and satisfied with the bargains they find. While that doesn’t necessarily mean that a Costco membership is suitable for you, it’s a good sign.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Dana George has positions in Target. The Motley Fool has positions in and recommends Costco Wholesale, Target, and Visa. The Motley Fool has a disclosure policy.

 Read More