6 Reasons a Costco Membership Is Totally Worth It (and 4 Reasons to Skip It)

Paying for the privilege of shopping at a wholesale warehouse isn’t always worth the cost. Many shoppers think they’re saving a bundle by buying in bulk but never bother to do the math. Is shopping at warehouses like Costco really worth it compared to your local grocery store?

With lower prices per unit for buying bulk, you might save a few dollars. However, that can get gobbled up by travel expenses, food waste and Gold Star or Executive membership fees. Let’s take a closer look at when shopping at Costco makes sense and when skipping it is a smart money move for your household.

Is the Costco Membership Fee Worth It?

Whether Costco’s cover charge is worthwhile depends on your situation.

The money itself can mean more or less depending on how much of a stretch it is for your budget, of course…but that’s not the only factor.

To figure out whether paying the membership fee would be a savings or a needless splurge, you’ve got to examine your purchasing needs and behaviors — and match them up with the goods and services Costco has to offer.

Our Favorite Ways to Earn Quick Money to Pay For Your Costco Membership

How Much Is a Costco Membership?

Costco offers three different memberships, all of which have annual membership fees. All memberships, including the standard Gold Star membership, come with one free household card and are valid at all Costco locations worldwide.

You’ll be tempted to sneak your entire extended family in under the membership umbrella, but don’t. Costco specifies that the Gold Star and the Gold Star Executive memberships can have only one primary cardholder. A second card is provided free of charge for any household member you designate, but they must be over the age of 18. You can change the designated member at any time through the membership counter or your Account Details online.

How Much Do You Save Shopping at Costco?

Costco members do enjoy lower prices when buying in bulk, but not on all items. Some of the deeper discounts can also be found on Costco’s Kirkland Signature brand products, such as rotisserie chicken, olive oil, maple syrup, plastic wrap batteries and more. 

Keep in mind Costco’s per-unit prices are for buying large quantities. That’s not a big deal for household staples or groceries with a long shelf life, but for perishables, it’s a problem. Costco members have to carefully consider how much their household can consume and if they have the space to store bulk items.

6 Reasons a Costco Membership Is Worth It

So, when is a Costco membership worth it? When your savings add up to more than the annual membership fee. 

For Gold Star members who shop Costco regularly, that would mean saving $5 or more per month — not a stretch when you consider those egg and chicken prices.

Executive memberships are more expensive, but they also offer 2% back in reward points. Costco estimates that to recoup your $120 Executive membership fee, you’d have to spend about $500 per month. If you add the Costco credit card to your wallet, you can get another 2% (or more) back on the items you buy, reducing how much you have to spend to make your Costco adventures worth the membership fee.

Here are the six situations when a Costco membership is money well-spent (and saved).

1. If You Have Kids

If there’s anything you need lots and lots of as a parent, it’s diapers and wipes — unless you’re using cloth reusables or braving the world of potty training. The price point on Kirkland Signature diapers is hard to beat, coming in at 18 cents per diaper.

Perhaps you’ve heard the rumors, but Kirkland Signature baby wipes are the stuff of parenting legend. They’re just 2 cents per wipe. Costco also sells baby formula in bulk.

Another family-friendly savings nexus? Quick and easy prepared foods. Busy parents will love finding pre-packed heat-and-eat rice and quinoa at a steep discount compared to retail grocery store prices. 

Oh, and don’t forget the free samples that’ll have your kids begging you to take them along when you go shopping. How’s that for a change of pace?

2. If You Buy Organic

This Seattle-based wholesale chain has become an organic retail powerhouse, offering many bulk organic foods for lower prices.

These are just a few of the major organic brands Costco carries in addition to its Kirkland Signature organic products and produce:

• Pacific Foods
• Nature’s Path
• Annie’s
• Green Mountain Creamery
• Namaste
• Seeds of Change
• Made in Nature
• Nasoya

Costco is also widely known for offering bulk meat and poultry raised without antibiotics or hormones as well as cage-free eggs.

3. If You Have a Dog

Costco’s Kirkland Signature dog food earns solid reviews from veterinarians and others who find it a trustworthy, inexpensive alternative to pricier pet brands. A 40-pound bag will set tails wagging at about $1.25 per pound, and there are half a dozen formulas designed for puppies, seniors, small breeds and others.

Another reason Costco is a dog’s best friend? Kimberly Gauthier feeds her four dogs a raw diet — which means she buys a lot of meat. 

“A Costco membership makes this affordable,” she writes. She needed an extra freezer to store it all, and she bought that at Costco, too!

She also mentioned Costco’s dog beds are some of the best-priced and highest-quality options on the market. She’d know — she’s the mind behind Keep the Tail Wagging, a blog all about dog nutrition and care.

4. If You Drive a Lot — or at All

One of the best deals at Costco probably isn’t on your grocery list. It’s gasoline.

Yup: Costco has some of the most affordable gas around, and you can’t purchase it without a membership (unless you’ve got a Costco cash card, which only members can purchase). Just be warned Costco gas stations have notoriously long lines of members waiting for the pump, so fuel up during off-hours instead of on weekends.

Another Costco automotive perk that’s worth the membership fees, even if you have an electric vehicle, is the Costco tire center. It offers deep discounts on tires, free tire rotation and maintenance, and the tire center fills up your tires with nitrogen instead of air.

5. If You’ve Got a Big Expense Coming Up

OK. Hear us out on this one. The Costco list of weird discounts includes some crazy stuff you’d never imagine buying from a warehouse, like a casket or an engagement ring.

But big price tags mean bigger kickbacks if you have an Executive membership. And even with a Gold Star membership, there’s a good chance discounts on things like vacation packages, furniture or backyard play sets could recoup your annual fee in a single purchase.

6. If Costco Is Your Jam

Hey, no judgment. Shopping at Costco still feels like an adventure, and cruising down the wine aisle while noshing on samples isn’t the wrong way to spend a Saturday morning. And with its commitment to a livable wage, ethical food sourcing and generous return policy, supporting Costco can feel as good for your conscience as it is for your wallet.

And how about that famous $1.50 hot dog deal at the Costco food court? Marketwatch estimated the hot dogs at Costco should cost about $4 when adjusted for inflation, but co-founder Jim Sinegal threatened to kill CEO Craig Jelinek if he raised the cost so they’ll be $1.50 for the foreseeable future.

5 Ways to Pay for a Costco Membership

1. Earn as Much as $1K/Month Doing Simple Online Tasks

Is there such a thing as easy money? If you know your way around the web, there certainly is.

That’s because data is currency these days, and many companies are willing to pay cash for it — up to $1,000 per month.

Finding these companies can be time-consuming on your own. But a company called Freecash has compiled all sorts of quick cash tasks from about a dozen advertisers and market research companies thirsty for more data. Freecash has paid out over $13 million to users since 2019.

You can pick and choose your tasks and complete them at your convenience. The coins you earn from each completed task can be converted into Visa gift cards, Amazon gift cards, cryptocurrency, or cold-hard PayPal cash.

Signing up for a Freecash account is easy, and there’s no minimum amount you need to earn before you can cash out. And if you’ve got enough free time on your hands, you can join the ranks of Freecash users making more than $1,000 a month in extra cash.

Sign up here to see how much you could earn.

2. Your Car Insurance is Ripping You Off — Cut $996 From Your Bill

You might not even realize it, but your car insurance company is probably overcharging you. In fact, they’re kind of counting on you not noticing. Luckily, this problem is easy to fix.

Don’t waste your time browsing insurance sites for a better deal. A company called Insurify shows you all your options at once — people who do this save up to $996 per year.

If you tell them a bit about yourself and your vehicle, they’ll send you personalized quotes so you can compare them and find the best one for you.

Tired of overpaying for car insurance? It takes just five minutes to compare your options with Insurify and see how much you could save on car insurance.

3. Get Paid $225/Month While Watching Movie Previews

If we told you that you could get paid while watching videos on your computer, you’d probably laugh.

It’s too good to be true, right?

But we’re serious. By signing up for a free account with InboxDollars, you could add up to $225 a month to your pocket. They’ll send you short surveys every day, which you can fill out while you watch someone bake brownies or catch up on the latest Kardashian drama.

No, InboxDollars won’t replace your full-time job, but it’s something easy you can do while you’re already on the couch tonight, wasting time on your phone.

Unlike other sites, InboxDollars pays you in cash — no points or gift cards. It’s already paid its users more than $56 million.

Signing up takes about one minute, and you’ll immediately receive a $5 bonus to get you started.

4. Add $1000 to Your Wallet for Trying Out Apps

Our smartphones are the world’s greatest time-killers. You can browse Facebook; play a game; download a new app.

You’re doing all this anyway — why not get paid for it? With a website called KashKick, you could get paid for things like answering survey questions or downloading and playing a game — up to $1000 in your first month.

You can earn money by playing games or trying new products and services, but surveys are the main way to make money.

Once you earn $10 in your account, you can immediately get paid via Paypal. This is an easy way to make a little extra money while you’re killing time on your couch. All you need is your phone or computer.

It takes just a minute to sign up, and you’ll immediately earn $1 just for completing your profile on the site. You’ll be that much closer to cashing out.

5. Get Paid to Help Cure Your Chronic Health Condition — Up to $3,000

Struggling with a chronic health condition and overwhelmed by high treatment costs or limited care options? Did you know that there might actually be a way to access cutting-edge care for free?

GoodLab is a free clinical trial matchmaking service that works alongside the best clinical trial providers across the United States. Connect with the latest treatments and medications for free — in fact, you could get paid up to $3,000 for participating!

Trials will cover conditions like migraines, depression, skin conditions, Alzheimer’s, and more. Oh, and almost all of the trials don’t require you to have health insurance, either. Ready to get matched? It only takes a couple of minutes to fill out GoodLab’s quick online form and find relevant paid clinical trials near you.

4 Reasons To Rethink a Costco Membership

Is Costco worth it for everyone? Not exactly. The following are some situations in which a Costco membership might cost you more than it saves.

1. If You Live By Yourself

This one’s tricky.

Some things are worth buying in bulk because they never go bad and you can never have too much (i.e.: toilet paper). But since most folks who live alone don’t have the space to store bulk items, a warehouse membership might be a wasted cost if you’re flying solo.

2. If You’re Part of a Couple

While a warehouse membership is almost a no-brainer for families, it’s a bit more of a stretch for a child-free couple. Do you really go through that much stuff?

There are some ways to get around potential waste when buying in bulk, like splitting purchases with another couple. Although Costco allows only the actual cardholder to make purchases, you can easily split the bill afterward and have your friends reimburse you in cash.

So, you’ll get to take advantage of Costco’s awesome deals without contributing to America’s massive problem with food waste. Heck yes!

3. If You Live Too Far From a Costco Warehouse

How far is too far to make a Costco membership worth the travel and the trouble? The consensus is anything longer than a 20- to 30-minute commute, depending on your gas mileage and traffic congestion, is too far to travel to your local Costco. You can check an online fuel calculator to see exactly how much you’ll spend.

The good news is that as of October 2024, Costco has 890 locations worldwide, with 600 in the United States alone. So in most corners of the country, you don’t have to travel far to find a Costco near you.

4. If You Don’t Have a Visa Card

A few years back, Costco decided to accept payment via credit card only from Visa cards. If you’re a member, Costco accepts cash, personal checks, most ATM/debit cards and many mobile pay options like Apple Pay or Google Pay.

You can also have someone purchase Costco shop cards for you to use, but that’s a serious hassle.

3 Things You Can Buy at Costco Without a Membership

Did you know you can use a bunch of Costco’s services and even buy some products without a membership? Yep. Step this way and see what you can slide into your cart.

1. Prescriptions

It’s a not-so-well-kept secret that you can actually access Costco’s pharmacy without a membership — your right to do so is protected by state law. You can also get low-cost immunizations, hearing tests and eye exams membership-free!

2. Alcohol and Wine

One thing you probably didn’t know about Costco: In some states, it is required to sell alcohol and wine to you even if you don’t have a membership.

While it’s technically to do with post-Prohibition-era laws pointed at speakeasies, these are the states where you can fill up your cart with booze and bypass the membership fee:

• Arizona
• California
• Colorado
• Connecticut
• Delaware
• Hawaii
• Indiana
• Kentucky
• Massachusetts
• Michigan
• Minnesota
• New York
• Texas
• Vermont

3. Online Orders

Some of Costco’s products are available online only, which works out just fine for folks without a membership card. You’ll have to pay a 5% surcharge for orders on Costco.com, but you’ll still have access to the same products, such as Costco’s popular discounted gift cards.

One caveat is that members get free two-day delivery for orders of $75 or more, but as a nonmember, you’ll be stuck with three- to five-day standard shipping for your online Costco purchases.

Should You Get a Costco Membership?

The answer to whether to get a Costco membership is mostly a personal one. If you live alone but have a chest freezer and a big pantry, the benefits of making fewer trips to the grocery store might be worth it to you.

Keep in mind there are also other warehouse stores out there (hello, Sam’s Club) that might be closer to where you live or a better fit for your needs. As long as you’ve weighed the pros and cons, fill up your cart with the good stuff and enjoy the samples guilt-free.

Kaz Weida is a former senior writer at The Penny Hoarder. Jamie Cattanach, a former writer for The Penny Hoarder, contributed.