Money Management

The whole point of joining Costco is to save money. Read on for tips to eke out even more benefits. 

Many people join Costco because the warehouse club giant is known for competitive prices on everything from groceries to apparel to electronics. And if you want to eke out even more savings at Costco in the new year, here are a few strategies worth focusing on.

1. Get the right membership

Costco offers two types of memberships — basic and Executive. The former costs $60 a year as of now, while the latter costs $120.

The Executive membership, however, gives you 2% cash back on Costco purchases. So if your spending is high enough, the Executive membership might save you money compared to the basic membership despite its higher cost.

Assuming these membership rates stay the same, $3,000 is your break-even point for the executive membership upgrade. If you spend that much at Costco in a year, you get $60 back, which covers the exact difference between the two membership fees. Once you spend beyond $3,000, you save more money from an Executive membership.

2. Buy Kirkland products

Kirkland is Costco’s signature brand, and you’ll find it on everything from baked goods to paper products. You may be used to bringing home certain brands, but try to look past the packaging in the course of your Costco shopping. The Kirkland brand will, in many cases, be your less expensive option.

Case in point: Right now, a 12-pack of Kirkland tissues costs $19.99 online, and your cost per tissue is $0.02. A 12-pack of Kleenex tissues is $24.99, and your cost per tissue is $0.03.

3. Shop at the store instead of online

Shopping online may be convenient, but if your goal is to save money at Costco, then sticking to in-store shopping is better. Many of the items you’ll find on Costco.com are available for lower prices in stores.

Also, many items you’ll find at Costco.com are part of its two-day delivery program. This means you have to meet a $75 online order minimum or otherwise pay for shipping. And it’s not as if you get a choice to have your item ship at a slower speed for free. Items designated for two-day delivery fall into that category, even if you’re willing to wait.

4. Don’t be shy about asking for price adjustments

Costco’s prices can change from one month to the next. And you should know that Costco will give you a price adjustment if you buy something and its price drops within 30 days — all you need to do is fill out a form for online orders or go to customer service if you made your purchase in person.

That said, if you need to request a price adjustment at your local Costco store, your best bet is to try to go at an off-peak time to avoid long lines. It could pay to show up as soon as Costco’s doors open and make a beeline for the customer service area. Or, go at night, closer to closing time.

The whole purpose of paying for a Costco membership is to save money on the products you buy. These tips could help you enjoy even more savings in the new year, so be sure to work them into your shopping routine.

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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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Cars have been expensive to buy this year. Will things improve in the new year? Read on to find out. 

For many of us, a car isn’t simply a want, but a need. And if your car has seen better driving days, then you may be gearing up to replace it in 2024.

That’s something you may be worried about, though, and understandably so. Car prices were high in 2023, and financing rates were expensive. Buying a car in 2023 wasn’t good for many people’s personal finances.

But will things improve in 2024? Maybe, to some degree.

Vehicle prices have been trending lower

In November, Kelley Blue Book reported that new car prices have been falling for most of 2023. And while they rose slightly in October to $47,936, prices are still down 1.4% on an annual basis and 3.5% since peaking last December.

If this trend continues, car buyers may not have to dip into their savings accounts in 2024 to quite the same degree as they might’ve had to this year. But to be clear, we shouldn’t expect the auto industry to suddenly be laden with bargains. Although supply chain issues have improved, there’s hardly an abundance of cars on the market, so buyers shouldn’t expect to see steep discounts.

Financing costs could be high

The typical consumer can’t necessarily afford to pay for a car outright. That’s where auto loans come in. But these days, borrowing rates are up across the board on the heels of the Federal Reserve’s string of interest rate hikes. The Fed may be in a position to cut rates in 2024 if inflation continues to cool. That could result in a world of relief for borrowers, and it could lead to more affordable auto loan rates.

But it’s premature to say with certainty that borrowing rates are going to fall. And we can bank on higher auto loan rates to start off 2024 at the very least. That’s something to keep in mind if you have no choice but to finance your vehicle.

How to save on a car purchase in 2024

Buying a car may not be quite as expensive in 2024 as it was in 2023. But there are steps you can, and should, take to save even more.

First, shop around at different dealerships and be open to different vehicle models. If you’ve got your heart set on a single model, you’ll leave yourself with less negotiating power.

Better yet, be open to buying a used vehicle, as it may result in a world of savings. As of November, used car prices were down 3.8% on a year-over-year basis, according to that month’s Consumer Price Index.

Along these lines, before you overpay for added features, ask yourself how badly you really need them. If you live in an area where the winters don’t get all that cold, you probably don’t have to spring for heated seats if they cost extra.

Finally, do your best to boost your credit score. The higher that number, the more competitive an interest rate you might manage to snag on an auto loan. You can raise your credit score by paying bills on time and checking your credit report for errors.

Ideally, 2024 will end up being a better year to buy a car than 2023 was. And if you approach the process strategically, you might manage to eke out even more savings.

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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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Almost half the Americans in one survey said they regretted a holiday purchase. Find out how to keep your spending on track this holiday season. 

I’ve always loved gift giving. As a kid, I’d prepare for Christmas starting around July by saving up and thinking about what people might want. I had detailed budgets and lists that would put a wedding planner to shame. I priced out all the supplies for homemade gifts and chased down the best deals on the things I wanted to buy.

As an adult, I still take huge pleasure in the holidays. But working life doesn’t leave much time to spend hours planning the festivities. And while I do save for Christmas, I don’t think I’m alone in saying there hasn’t been much wiggle room in my budget for extravagant gift bonanzas recently.

Average holiday spending in the U.S.

According to a CouponFollow study, the average American will spend $409 on gifts this year. Over half the people surveyed planned to spend about the same as last year. Around a third said they’d spend less — potentially because higher living costs continue to bite many people’s bank balances. Almost 50% of respondents said they regretted a holiday purchase.

There are a lot of different gift-giving statistics out there, with dramatically different price tags. For example, a recent Gallup poll found that Americans would spend $975 on holiday gifts, up over $100 on last year. Perhaps unsurprisingly, households with children tend to spend more than those without.

It’s good to have an idea of what others do when planning out your holiday spending. But just because some Americans will spend $409 or $975 doesn’t mean you have to do the same. What matters is knowing what you can afford and how you’re going to find the money.

According to a recent PYMTS survey, 37% of consumers will dip into their savings to pay for holiday expenses. Given that almost 60% of U.S. consumers are living paycheck to paycheck, it can be difficult to find the extra cash. Over 30% said they’d use some form of credit — whether that’s credit cards or buy now, pay later options.

How to keep your holiday spending under control

Aside from time and responsibilities, the big difference between me now and my 12-year-old self is that now, it’s much easier to spend beyond my means. The stores are packed with temptations — from gifts that would make a loved one smile to treats that would add an extra sparkle to our celebrations.

Unfortunately, it’s much easier to spend an extra $10 here and there when you have a credit card in your wallet. Here are some ways to avoid buyer’s remorse or a January shopping hangover and still have a fantastic Christmas.

Make a plan

Just as we’ve all got different ideas about how to make eggnog, so, too, will we have our own approach to Christmas budgeting. One way is to make a list of everybody you need to buy for, along with an amount you want to spend. If your other half has their heart set on their very own turntable or a Nintendo Switch, this can be an effective way to plan. Take the total and work out how you’ll finance it.

I usually come at it the other way around. I work out how much I can spend, based on the amount of cash in my holiday savings account, checking account, and shopping rewards points. Then I divvy it up between the people I need to buy for and make adjustments as necessary. If I have to use my credit card or savings to cover extra costs, I’d rather know now so I can plan to cut back in January.

Communicate

Gift giving can be a minefield. I’m sure many of us have been on both sides of that awkward experience where someone shows up with the equivalent of a fridge magnet and the other gifts a sweater in exactly the right color and style. The fear of not giving enough can often drive overspending, and before you know it, everybody’s trying to keep up with each other.

Talk to your loved ones this holiday season. See if you can agree on reasonable spending limits and set clear expectations. Sure, it takes some of the magic out of gift giving, but there’s nothing magical about credit card debt or being unable to pay for unexpected car repairs. Guard rails can help stop you and your loved ones from spending money you don’t have on what you think someone else might desire.

I have a no-present rule with several of my close friends, and it works really well. This is a supercharged time of the year for many people, so most friends welcome having one less thing on their to-do list.

My family makes a challenge out of our Christmas gift rules. There’s always a price limit and a theme. One year, it was only experiences. Another year, everything had to be recycled. It doesn’t apply to the kids, but for the adults, it’s a fun way to make sure things don’t get out of hand.

Stretch your budget

Black Friday and Cyber Monday may have passed, but there are still plenty of ways to make your gift money go further. Use price comparison websites to hunt online for the best value. If you know what you want to buy, see if there are any coupons or codes that could reduce the cost.

Cash back apps can reward you for your holiday spending and help you find excellent bargains. See if you can layer your bonuses by also using a rewards credit card. If you’re considering a card with a sign-up bonus, your gift purchases might help you reach the spending target.

Don’t let money drive your holiday experience

Without going all schmaltzy on you, there’s more to the holidays than spending money and giving gifts. If you’re worried about how you’ll pay for all those Christmas costs, talk to your loved ones. Personally, I would hate to think that someone I cared about was going into debt to finance gift giving. I doubt I’m alone. An open conversation can ease the personal finance pressure all around.

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If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. 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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase and Target. The Motley Fool has a disclosure policy.

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