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Costco has competitive prices, but it’s still possible to end up overspending there. Keep your Costco bill in check by following these tips. [[{“value”:”
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One of the reasons people shop at Costco is to save money. The warehouse giant is, after all, known for low prices and deals on bulk items. Even with the $60 annual membership fee, or $120 for the Executive membership, you could still end up spending much less overall on gas, groceries, and household items.
Not all Costco shoppers end up saving, though. If you’re not careful, it’s easy to waste money during your Costco trips. Here’s what you can do to avoid that.
1. Be careful about buying in bulk
Costco is king for buying in bulk. It’s where you can get giant jars of peanut butter in packs of two, 10 pounds or more of ground beef, and enough toilet paper to last through a pandemic (hopefully we don’t have another one of those).
Buying in bulk is a smart way to save money in the long run, but only if you use everything you buy. This isn’t a problem with nonperishable items. If you stock up on paper towels at Costco, you’ll eventually use them all. As long as you have the space, it makes sense to buy items like these in bulk.
With perishables, it’s important to mind the expiration dates. Only buy these in bulk if you’re sure you’ll use them before they go bad or if you have plenty of freezer space to preserve them.
2. Don’t assume Costco always has the best prices
Costco is an affordable place to shop, but it doesn’t always have the lowest prices. Shoppers have found that other stores often have better prices on certain items, including chicken, bread, milk, and cereal. Supermarkets also sometimes have specials and coupons available — coupon apps are a good way to find these.
If you don’t want to spend time going to multiple stores, it could make sense to just do all your shopping at Costco. But if you have local supermarket options nearby, and you visit them regularly, try comparison shopping. See which items are cheaper at Costco and which are cheaper elsewhere.
3. Make a shopping list and stick to the plan
It’s hard to resist adding extra items to your cart when you’re at Costco. The warehouses are perfectly designed for getting people to make impulse buys. You need to walk through the entire store to get to the grocery aisles, there are free sample stations with tempting treats, and there are always exciting new items to see.
A shopping list can be a big help here. People who use a shopping list buy fewer items and spend less on average, according to a 2020 study by Carleton University. When you know exactly what you need, you’re less likely to add what you don’t.
Now, making a list is only half the battle. You also need to stick to it. To make it easier, avoid going down aisles with items you don’t need and stay away from the free sample stations.
There are plenty of opportunities to save on your everyday expenses by shopping at Costco. If you make a shopping list, compare prices at other stores, and only buy bulk items that you know you’ll use, you’re a lot less likely to overspend.
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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.Lyle Daly 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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