My Favorite Perk of the Costco Executive Membership

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It’s a benefit that makes the extra cost worth it. 

I’m the sort of person who isn’t always so quick to upgrade. I’ll hang onto the same cellphone, for example, for many years until it basically stops functioning. And the fact that my family’s second car is a 16-year-old Prius whose trunk is so old it won’t open should speak to the fact that I tend to err on the side of frugality and saving money.

But one area where I’m more than happy to spend extra is my Costco membership. I upgraded from a basic membership to an executive one many years ago, and I haven’t looked back since thanks to this awesome perk.

The best part of an executive membership

A basic Costco membership costs $60 a year, while an executive membership costs $120. Clearly, that’s a large difference. But it’s worth paying the additional money for one key benefit: the ability to get 2% back on purchases, the same way you might get 2% cash back on a credit card.

I happen to shop at Costco a lot. I stop in weekly for items like produce, dairy products, and snacks, which my kids seem to magically go through at a rapid clip. I also use Costco for other purchases, like cleaning supplies, toilet paper, and items for my dog. And when I need a gift in a pinch, I might just pick one up at Costco, since my local store tends to have a nice selection at prices that won’t ding my bank account.

All told, I spent more than $7,000 on Costco purchases in 2022 alone. And while I paid an extra $60 for my executive membership, because I got to enjoy 2% back on my purchases, I wound up more than making my money back.

In fact, what Costco does for executive members is issue a rewards certificate once a year. I got mine in early 2023 and used it to cover a week’s worth of food and supplies so that I didn’t have to spend any money out of pocket. That was a nice treat, and it gave me the wiggle room to treat my kids to a restaurant meal that week by virtue of that savings.

A perk worth paying for

Sometimes, you have to spend money to make money. In my case, I spent an extra $60 on a Costco membership to score a reward certificate worth $147. And all told, I made $87 by upgrading my membership. So even though paying for upgrades generally isn’t my MO, this time, it made a lot of sense. And I really have no plans to go back to a basic Costco membership anytime soon.

Of course, if Costco raises the price of an executive membership substantially, I may need to crunch the numbers and rethink mine. But while a fee hike may be in the cards for 2023, it’s doubtful that the cost of any type of membership will increase a whole lot. So chances are, it will make sense for me to continue paying a little more money to collect my 2% back on every single Costco purchase I make.

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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.

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