Money Management

Costco can be a big source of savings. But read on to see why you may be squandering that opportunity and costing yourself money. [[{“value”:”

Many people make the decision to join Costco for the savings involved. Although there’s a financial outlay for a membership, it might more than pay for itself if you shop there throughout the year.

But certain Costco moves you might think are financially savvy could end up coming back to bite you. Here are three that might cost you big time.

1. Sticking with a basic membership

A basic membership at Costco costs $60 a year, while an Executive membership costs $120. You might assume that sticking to a basic membership is a smart move, since you’re shelling out less money upfront. But if you do a lot of shopping at Costco, you might actually lose money by not upgrading your membership.

See, for the extra $60 a year your Executive membership costs, you get 2% cash back on your Costco purchases. So once you’ve spent more than $3,000 at Costco in a year, the Executive membership has paid for itself.

Let’s say you shop at Costco most weeks and spend $100 each time you go. If you spend $5,000 during the year, you’ll get $100 back on an Executive membership. When you subtract the cost of that upgraded membership, you’re up $40.

To put it another way, in this example, you’re spending $120 on an Executive membership but getting $100 of it back, so your total membership outlay is only $20. With a basic membership, you’re spending $60 but getting $0 back, so your total outlay is, well, $60.

2. Buying items in bulk you won’t get to use before they expire

Buying in bulk at Costco is a great way to save money — if you purchase the right products. But if you buy items in bulk that you don’t use up before they expire, then you’re basically throwing money away.

A good rule of thumb when buying perishable foods in bulk is to ask yourself, “How many times a week does my family eat this product?” If the product in question is a case of strawberries and the answer is “five,” then you’re probably OK making that purchase. But if it’s something most people in your family eat once a week and are then done with, it’s probably not a good bulk buy.

3. Buying items online you can find in the store

Many of the items you’ll find on Costco.com come with free shipping. You may be inclined to buy items on the site to avoid a trip to the store. But keep in mind that you actually are paying for shipping — just not directly.

Most of the items that Costco sells both online and in stores are cheaper to purchase in stores. So when you buy a $15 item online with free shipping that sells for $11 at your local warehouse club, you’re basically paying a $4 shipping fee without realizing it.

Now, there are some Costco items that may only be available online. If you have a need for those, by all means, place an order. But if a given item is available in stores, buying it online could mean wasting money.

There are plenty of opportunities to make smart financial decisions when shopping at Costco. But be aware that these moves in particular might leave you kicking yourself.

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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.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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Don’t overpay at the grocery store. Mobile apps like Flipp can help you find the best deals and coupons for your next grocery haul. Find out how to save more. [[{“value”:”

It’s no secret that everyday prices are skyrocketing, including food costs. Now, more than ever, people are struggling to afford groceries. Even in a dual-income, childfree household, I find the prices of everyday necessities to be too high.

Many Americans have been seeking ways to trim their grocery spending to keep more money in the bank. I’ve always been a fan of using coupons to save money. However, paper coupons are outdated and inconvenient.

But digital coupons are a great alternative. I recently learned about the free mobile app, Flipp. This app could help you trim your grocery spending with digital coupons. Learn how to use this app to spend less money the next time you buy groceries.

Flipp can save you time and money

If you’re sick of high food prices, you may want to download Flipp before your next trip to the grocery store. Flipp is available for iOS and Android devices and features over 2,000 participating retailers. All you have to do is type in your ZIP code to discover ways to save.

Flipp finds and helps you organize your digital coupons while comparing the prices of various products at different stores within the app. The app also shows you sales flyers for nearby retailers. With this tool, you can save time by finding the best deals faster.

It’s an all-in-one savings app

In addition to making it easy to find and organize digital coupons, Flipp has a grocery list feature that lets shoppers add items to their grocery lists. It’s easy to add items, and the app will alert you if any items on your grocery list are on sale.

For example, if your list includes eggs, all the digital egg coupons will appear from stores within your area. If your item isn’t on sale, you can add it to Flipp’s watchlist feature to track it until it’s at your desired price.

Another great feature Flipp offers is its loyalty card wallet. Gone are the days when you must carry around a dozen loyalty cards. You can add each loyalty card to the loyalty card wallet, and the app will display digital coupons that could result in more savings.

You can also use this app to save on other purchases. You can find stores like CVS, Home Depot, Macy’s, Petco, Ace Hardware, and Target on Flipp. Many shoppers use this app to determine where to buy food and other necessities for the lowest price.

Use cash back credit cards to earn rewards when you shop

Using a coupon app like Flipp is a great way to save on everyday expenses. But with the right credit card, you can also earn valuable rewards when you shop. You can use cash back credit cards or rewards credit cards to earn cash back on your grocery spending.

These cards can help you save money by rewarding you with valuable cash back rewards. You can redeem your cash back rewards for free groceries in the future. Review our list of the best gas and groceries credit cards to learn more.

Everyone has different budgets, but digital shopping apps like Flipp are an excellent solution for most shoppers, whether shopping solo or for a busy family of five. Take advantage of free tools like this that save you time and help you keep more money in your pocket. For additional ways to save money, check out our personal finance resources.

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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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

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How much do you pay for groceries? How do you think it stacks up? Keep reading for the inside scoop. [[{“value”:”

With inflation continuing to hold the cost of everyday items high across the nation, and a dollar just not stretching like it used to, it can be really easy to kick yourself when you look at your monthly expenditures. Grocery costs have been outrageous for the last several years due to a range of factors that include supply chain issues, with January 2024’s year-over-year food at home index increasing 1.2% and overall inflation rising another 3.1% year over year.

Regardless of the why, you’re living with the “what now?” Do you know how your grocery bill stacks up to the average American’s?

Does anyone track grocery bills?

A few different government agencies keep track of food costs and what realistic grocery budgets should be. One is the U.S. Department of Agriculture (USDA), which tracks the price of specific hypothetical “baskets” of food for each of its pricing models. It’s been using its most recent model since 2007, pricing out what it would cost to feed Americans the recommended nutrients based on different budgetary levels.

It’s an interesting approach that can help a family or an individual figure out just how much they should spend on a healthy diet that’s wholly prepared at home. It’s never going to be exact because prices vary regionally, but it’s a great ballpark to start with.

The U.S. Bureau of Labor Statistics (BLS) compiles the Consumer Expenditure Survey. This survey looks at a range of consumer expenses, from housing to utilities and even clothing. This is a measure of actual costs for food, as reported by consumers, versus the USDA’s hypothetical ideal healthy diet.

So what do Americans pay for groceries?

The next time you’re in line at the market, you may wonder what other people are spending, as well as what the USDA feels is an ideal amount of money to spend for a healthy diet. Let’s look at those numbers now.

The USDA approach

The USDA publishes three different plans for grocery spending: a low-cost plan, a moderate-cost plan, and a liberal plan. Depending on your household budget, any of these may apply. It further divides the grocery baskets into age-sex groups, and assumes that you’ll pick four people out of the list to build your grocery order. The published table allows for additional adjustments, such as adding 20% to the price if you’re a family of one.

Let’s look at an example. In this scenario, we’ve got a family of four: mother, father, and two children, aged 6 and 10.

According to the USDA, their costs should look roughly like this:

For a single person living alone, you’d use the same chart, but add 20% to your cost. So, for example, for a woman aged 19 to 50, her monthly ideal food plan should cost between $310.68 and $483.60.

The BLS approach

When you look at the Consumer Expenditure Survey (CES), you get a different peek at household spending. This is compiled using actual data from actual humans, not idealized data based on healthy diets, as envisioned by the USDA. What I mean to say is that the people of the CES buy Oreos at the market, if you get my drift.

When you look at the CES, you’ll see a year’s worth of expenditures, divided by category. Since we’re talking about groceries specifically, we’re going to lean on the “Food at Home” category, which is different from “Food Away From Home,” and doesn’t include alcoholic beverages.

The data is divided a bit differently, but you can see categories like “Married couple with children, oldest child 6 to 17” and “single person and other consumer units,” which will roughly correspond to our above families.

For the couple with the kids, grocery expenses in 2022 (the most recent year available) were approximately $8,486. For the single person, it was $4,081. That’s $707.16 and $340.08, respectively. Remember, this doesn’t account for meals eaten away from home, like school lunches or drive-thru tacos during a busy day at the office.

So what should you pay for groceries in 2024?

How much you should pay for groceries varies widely depending on your family size, your location, and most of all, your dietary needs. If you have a lot of food allergies, for example, you’re probably going to end up spending a great deal more than the average family.

Remember, personal finance is personal, and your costs won’t be the same as anyone else’s.

If you look at your budget and don’t like what you see, the first thing to do is to sort frivolous spending from necessary spending. Consider buying in bulk and cooking staples in batches, since this will both minimize the work you have to do in the kitchen and the number of trips you take to the store. In addition, keep an eye on your grocery store’s app, third-party coupon apps, and even paper mailers for coupons and special offers that can save you even more.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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.The Motley Fool has a disclosure policy.

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If your car is totaled in an accident, a settlement payment can help cover the cost of a replacement car. Here’s how one writer got the insurer to pay more. [[{“value”:”

In early 2020, weeks before the start of the pandemic, I was in a car accident near my home. While on my usual drive home from the grocery store, I was rear-ended by another driver.

Luckily, no one was seriously injured, but my almost 12-year-old vehicle had significant damage. After a thorough inspection, my car was considered a total loss. I’ll share how I got the other driver’s insurance company to pay me over $750 more than initially offered.

Some accidents result in a vehicle being totaled

The accident I was involved in resulted in visible damage to my car. However, I assumed the damage wasn’t severe enough to be considered totaled. I was wrong.

When do insurance companies consider a car to be totaled? A vehicle may be determined to be a total loss if the vehicle can’t be repaired due to safety concerns or if the expected repairs will cost more than the vehicle is worth. That’s what happened to my car.

In my case, the other driver was at fault, and luckily, they had adequate auto insurance coverage. Because of this, their auto insurance company was responsible for paying me for the actual cash value of my vehicle. I planned to use this money to buy a used replacement vehicle.

The insurer sent me a settlement offer

While my vehicle was nearly 12 years old, I had been driving a Toyota with lower-than-average mileage, and it was in good condition before the accident. These facts benefited me when it came time to discuss payment with the auto insurance company.

An insurance representative provided me with a detailed report and a settlement offer. The settlement offer is the amount the insurer hopes the impacted driver will accept as reimbursement. In exchange for no longer having a drivable car, I’d walk away with a check.

The offer included a total settlement payment amount, inclusive of state tax. It came with a report highlighting research about the value of comparable vehicles for sale in my local area. The report also included details about the condition of my car.

I asked for more money because of recent repair work

I had replaced my tires not long ago and noticed the insurer had accounted for my tires being in excellent condition. But I also remembered that I had gotten some necessary parts replaced recently. I contacted the insurer with a copy of my repair bill to provide proof of the repair work.

The insurer returned with an updated report and a higher settlement offer. This was my first involvement in such a situation, so I took their second offer without question. I walked away with an additional $750 because I proved that my car was worth more than the initial estimates.

Don’t be in a rush to accept the first offer

I’m glad I asked for more money. But I’ve since learned that I may have been able to dig deeper to get a higher payout. For example, with outside research, I may have found vehicles of a similar make and model being sold for a higher price in my area.

If I could show documentation of these examples, I may have gotten the insurer to offer me more money by showing that my vehicle had a higher estimated value. That could have given me more money to work with when shopping around for a replacement vehicle.

Reviewing the settlement offer carefully and negotiating for a better offer is worthwhile. The insurer benefits by paying you as little as possible, so ensure you’re paid fairly for the loss of your car. Taking extra time to do thorough research could benefit your personal finances.

Our best car insurance companies for 2024

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

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.The Motley Fool has a disclosure policy.

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