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A Costco membership often makes financial sense. But read on to see how to get the maximum value out of yours.
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It really doesn’t take much to justify the cost of a Costco membership. The fee you’ll pay up front can more than make up for itself if you shop at Costco often and consistently reap savings on everything from groceries to household essentials. But if you’re eager to really make the most of your Costco membership, here are five moves worth making.
1. Visit when your gas tank is close to empty
There’s a pretty good chance your local Costco offers the cheapest gas in town (or, at the very least, has cheaper gas than most local stations). So it’s a good idea to time your shopping trips to when your car needs a fill-up.
By visiting Costco when both your pantry and your gas tank are empty, you can tackle both tasks without a separate trip and spend less on fuel.
2. Air up your tires for free
Costco members get the benefit of free air for their tires when they need it. This can come in really handy during those times when the temperature drops drastically, taking your tire pressure down along the way.
In fact, some Costcos have a self-serve machine you can use to pump up your tires yourself so you don’t even have to wait for assistance.
3. Sign up for an Executive membership
You may be inclined to stick to a basic Costco membership because it only costs $60 a year, as opposed to the $120 you’ll spend on an Executive membership. But the upside of an Executive membership is that you get to snag 2% cash back on all Costco purchases you make, including online orders.
If you run the numbers, you’ll see that all it takes is $3,001 or more in annual Costco spending for an Executive membership to make sense. So if you’re confident you’ll hit that spending threshold, it pays to upgrade.
4. Use up your FSA before it goes to waste
The tricky thing about FSAs is that you’re generally required to deplete your plan balance each year or risk letting your money go to waste. Costco stocks a wide range of over-the-counter medications and products that are FSA-eligible, from cold medicines to contact lens solution. Better yet, many of the over-the-counter medications you’re used to taking are available from Costco’s Kirkland brand, which can mean spending less and stretching your FSA balance further.
For example, you can buy 1,000 tablets of Kirkland ibuprofen for $13.99 online at a cost of just $0.01 per pill. By contrast, you’ll pay $23.99 at Costco online for 360 Advil ibuprofen tablets for a cost of $0.07 per pill. (Do note that these are online prices, and your in-store costs may be different for both.)
5. Load up on gift cards
Costco offers a host of gift cards you can buy at a price that’s less than their face value. You can then give them away as gifts when the occasions arise or keep them for yourself. As an example, you can buy $100 worth of Papa Johns gift cards for just $79.99. So if that’s a place you order from regularly, that purchase would likely make sense for your personal finances.
A Costco membership may be worth it simply to save on basics like groceries and household supplies. But you can enjoy even more value from your membership by following these tips.
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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.Maurie Backman 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.
