Money Management

These items show Costco is all about saving members money. Costco’s membership is generally a good deal, too. Read on to learn how. [[{“value”:”

Costco is well known for two things: free samples and discounted bulk items. But the wholesale warehouse has also earned a reputation for keeping the price of a handful of items untouched for more than a decade.

Here are three shockingly cheap items Costco sells and why a membership could be a great idea for your personal finances.

1. Hot dog and soda

Price $1.50 since 1985

Even as inflation soared over the past few years, Costco’s famous hot dog and soda combo held fast to its $1.50 price — closing in on nearly 40 years of the same cost.

Costco’s chief financial officer Richard Galanti was asked in 2022 if the company would ever raise the price, to which he replied that the hot dog and soda meal would remain $1.50 “forever.”

If the hot dog and soda combo kept up with inflation, it would cost nearly three times as much at about $4.21.

2. 12-slice pizza

Price: $9.95 since 1989

Costco’s 12-slice cheese pizza isn’t the cheapest item you can buy in the company’s food court, but it’s undoubtedly one of the best deals.

Costco has kept the price of $9.95 pizza the same since 1989, the same year the Berlin Wall came down and Nintendo’s Game Boy was released.

If Costco raised the price of its 12-slice pizza to keep pace with inflation, the pie would cost a whopping $24.20 today.

3. Rotisserie chicken

Price: $4.99 since 2009

Another item that’s maintained its low price for many years — and has become a staple for many Costco members — is the company’s $4.99 rotisserie chicken. If Costco raised the rotisserie chicken price to keep up with inflation, it would cost $7.09.

Costco keeps the price of its chicken low to keep the value of its membership high. The more members save on low-priced items, the more shoppers view their membership as a good value and renew it.

Costco’s membership is a good deal too

When Costco opened its doors in 1983, it charged just $25 for membership. The cheapest membership — Gold — now costs $60 per year, but it’s still a good deal, considering that the inflation-adjusted membership price would be more than $75.

Some of the benefits from Costco’s Gold membership include:

Access to Costco’s stores nationwideDiscounted gasFree two-day grocery deliveryAccess to home and auto insurance servicesCostco travel servicesFree extended warranty on some electronics

Costco also offers an Executive membership with even more perks. The $120 Executive membership costs $120, and one of the best benefits is that you’ll earn 2% cash back on in-store and online Costco purchases. Members receive the rewards three months prior to their membership renewal and can earn up to $1,000.

And if you don’t earn enough rewards throughout the year to justify the extra $60 for an Executive membership, you can downgrade to the Gold membership and get a refund. For example, if you spend $2,000 at Costco during the year and earn $40 in cash back, you can downgrade to a Gold membership and receive $20 back to make up the difference.

My family only shops at Costco occasionally, so we have the Gold membership to save on purchases like gas. The good news is whether you opt for the Gold or Executive membership, the hot dog and soda combo is still just $1.50.

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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.Chris Neiger 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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After a car crash, my insurer paid for repairs but didn’t total it. Find out the big reason this disappointed me — and it’s not because I wanted a new car. [[{“value”:”

Years ago, I was involved in an automobile accident when someone hit my car. Fortunately, everyone was OK, but the car was pretty badly damaged so we had to make an auto insurance claim. Since the other driver was at fault, her insurance was responsible for covering the costs, and the company sent out an adjuster to assess the situation.

The car insurance company ultimately decided that it was going to pay to fix the vehicle, despite the fact it needed a ton of work, rather than declaring it a total loss. I was really disappointed in this outcome — and not because I was hoping to be able to buy a new car with the proceeds. Here’s why I wish the car had been totaled instead.

The insurer didn’t compensate me for diminished value

There’s a simple reason why I wasn’t happy that the insurer didn’t total my vehicle. As soon as my car was involved in an accident and had extensive repairs, this went on the vehicle’s record. So in the future, when I go to sell the vehicle, this will show up on Carfax reports and other searches of the car’s VIN number.

Unfortunately, an accident in a car’s history reduces its value to future buyers. In other words, my car was no longer worth as much because of the fact it had been subject to these repairs. This is called diminished value.

I expected, and wanted, to be compensated for this reduction in what my car was worth, especially since diminished value claims are allowed under the law where I live. The problem was, the insurance company did not agree. It claimed that because my vehicle wasn’t new and wasn’t a high value one that I wasn’t able to prove with certainty that I had actually sustained financial loss because of the crash.

I could have tried to fight this, and I actually did talk to two lawyers in a free consultation about what my options were. The problem is, it can be pretty hard to prove diminished value claims due to the challenges in accurately valuing the pre- and post-market value of the damaged vehicle.

No car dealerships I talked to wanted to provide me with written documentation of the reduction in value (including the dealership I bought the vehicle from), and both lawyers said it wasn’t worth the time or hassle to try to sue since the amount of loss was relatively small (anywhere from a few hundred to a few thousand dollars).

This meant I was basically out that money. And I didn’t really feel very safe in the car anymore due to the extensive repairs, so I opted to sell it soon after and definitely ended up getting less than the amount I otherwise would have. Had the car just been totaled, though, the insurer would have had to pay me the fair market value. In this instance, I would have received what the car was actually worth before the crash had occurred.

Car accidents inevitably mean losing money

The sad reality is, even without auto insurance, and even if someone else is to blame, being involved in a car accident almost always means you’ll be out some money. This could be because the insurer doesn’t adequately compensate you for diminished value or because your car is totaled and you can’t find one that’s the exact same price to replace it with.

This is just one more reason to be sure you have an emergency fund in a savings account ready to go, as you never know when an accident will strike.

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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.The Motley Fool has a disclosure policy.

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Will borrowing against your own savings impact your credit score? Read on to find out. [[{“value”:”

Borrowing money has the potential to impact your credit score in different ways. First, the simple act of applying for a loan or credit card will generally result in a hard inquiry on your credit report. And that right there could cause a minor credit score drop — usually in the vicinity of five points.

What’s more, if you rack up a balance on a credit card but fall behind on your payments, or you take out a personal loan and default, your credit score could sustain serious damage.

But 401(k) loans work a bit differently. One big benefit of taking out a 401(k) loan is that you’re repaying yourself instead of letting a lender or credit card company make money by charging you interest. Also, because you’re borrowing against your personal retirement savings, you don’t need to undergo a credit check to qualify.

Not every 401(k) plan allows for loans. But if yours does, you can take out that loan without having a hard inquiry done on your credit. That could prevent your score from taking a minor hit.

Even more importantly — from a credit score perspective, at least — if you fall behind on your 401(k) loan payments, your credit score won’t take a dive. Missed 401(k) loan payments aren’t reported to the credit bureaus the same way missed loan or credit card payments are.

But while taking out a 401(k) loan might seem like your best bet from a credit score standpoint, there are still big risks in going this route. It’s best to proceed with caution if you’re thinking of borrowing against your 401(k).

You could risk a serious penalty

Failing to repay your 401(k) loan may not hurt your credit. But it could still hurt you financially in a really big way.

If you don’t repay your 401(k) loan on time, that unpaid sum will count as a full-fledged 401(k) withdrawal. If you’re not yet 59 1/2 years old, that withdrawal will then trigger a 10% early withdrawal penalty. Plus, you’ll be taxed on your withdrawal.

To be clear, with a traditional 401(k) plan, you’re always taxed on withdrawals. But it’s something to keep in mind nonetheless.

Let’s say you borrow $10,000 from your 401(k). If you don’t pay that sum back at all, you’ll lose $1,000 off the bat to the aforementioned penalty. But you’ll also pay taxes on the entire $10,000 sum. So let’s say you’re in the 22% tax bracket. You might also lose $2,200 of that $10,000 to taxes.

And if you’re thinking, “Well, then, I’ll make a point not to default on my 401(k) loan,” consider this: If you end up leaving your job — whether voluntarily or because you’re laid off — your repayment window for that loan might be whittled down to just a few months.

Your specific 401(k) plan should spell out the rules of what happens in that scenario. But you might end up with a lot less time to repay your 401(k) loan than expected.

You could also leave yourself short for retirement

Another problem with taking out a 401(k) loan? If you don’t repay that money, in addition to penalties and taxes, you’ll risk having a lot less money for your senior years.

Over the past 50 years, the stock market’s average annual return has been 10%. A $10,000 loan you take from your 401(k) that you don’t repay could cost you over $174,000 in retirement income if you remove that sum 30 years ahead of your workforce exit and the investments in your 401(k) normally deliver that same 10% average annual return. (Or, to put it another way, 30 years of missed growth on a $10,000 sum could leave you with $174,000 less.)

As such, be very careful when borrowing against your 401(k). Doing so may not hurt your credit — even if you default on your loan. But there could still be severe consequences you’re left to deal with.

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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.The Motley Fool has a disclosure policy.

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Mobile data charges can add up fast when traveling abroad. But you can use Airalo to buy international eSIM data. See how you can save money with Airalo. [[{“value”:”

My sister and I have traveled around Europe together a few times since she moved to Paris in 2022. Unfortunately, it’s become common for her to struggle with her phone service outside France. I have Google Fi, which gives me access to international data at no extra charge, so we usually depend on my phone when we’re together.

But she’s been forced to deal with spotty service or pay for expensive coverage from her U.S. cellphone carrier when traveling alone. Luckily, while we were in London, we learned about a convenient and low-cost way to get mobile data outside of the U.S., which has saved her money. Find out how to get the data you need without overspending on your next trip abroad.

Have a plan for how you will stay connected

It’s wise to stay well-connected when you’re in a new country. I like to know where I’m going and be able to gather information quickly if something goes wrong. You can use public wifi, but depending on it for your entire trip is unrealistic.

Many American mobile service providers offer travel data plans, but typically, you’ll be charged an additional fee to use data abroad. Understanding what you will be charged before leaving for a trip is essential if you plan to rely on your mobile carrier for international data. Otherwise, you could quickly deplete your vacation budget.

International data access from providers like AT&T and Verizon can cost up to $10 daily. My sister is an au pair, so in her case, it’s not within her budget to spend an additional $10 each day for mobile data.

But luckily, she now has a more affordable way to stay connected. While we were in London, my friend Vanessa told us about the app Airalo. Vanessa travels from the United States to the United Kingdom often for work, so she’s used the app successfully many times.

This eSIM app unlocks cheap mobile data

Airalo is an eSIM platform. Travelers can purchase prepaid eSIM mobile data for 200+ countries and regions. You can choose between local, global, and regional eSIMs.

To use Airalo, download the app, select the country you’re going to, purchase a prepaid eSIM, install the eSIM within your phone settings, and then activate it. Do this before you leave so you can immediately start using data when you arrive at your destination.

Airalo offers different plans of varying lengths, such as 7 days, 15 days, and 30 days. Each package provides different amounts of data, like 1 GB, 2 GB, 5GB, or 10 GB. This allows you to choose what works best for your trip.

Prices vary by package and region. A 15-day package with 2 GB of data for use in the United Kingdom is $7.50 — much cheaper than Verizon’s $10 per day travel pass. If you need more data, you can always purchase another package.

It’s important to note that Airalo works for unlocked eSIM-compatible devices. Many of the latest mobile phones are compatible. You’ll want to verify compatibility before using Airalo.

My family put Airalo to the test while in Brazil

My family recently traveled to Rio de Janeiro, Brazil, for my brother’s wedding. My sister and I suggested this app to family and friends who were traveling abroad for the first time. Airalo worked well for them. Even the not-so-tech-savvy family members found it easy to use. The affordability allowed everyone to keep more money in their bank accounts.

eSIM data packages can save travelers money

Remember to consider international mobile data costs when planning your next trip abroad. Purchasing an eSIM data package before you go abroad can save you time, stress, and money. Airalo makes it easy to get international data access without the high price tag.

The money you save using a service like Airalo can give you more wiggle room in your travel budget. For additional ways to save money, check out our personal finance resources.

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This credit card is not just good – it’s so exceptional that our experts use it personally. This card features a 0% intro APR for 15 months, 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.

Read our free review

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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

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