Money Management

Does Costco offer its employees a fair wage and good benefits? Read on to find out. 

Many people shop at Costco regularly and marvel at the savings involved. Costco shopping can leave you with more cash to add to your savings account. But have you ever wondered what it would be like to work at a Costco warehouse club store?

On the one hand, working at Costco could mean spending a lot of the day on your feet. But if you’re someone who just doesn’t do well with a desk job, and you like the idea of getting to interact with people, then it could pay to see if your local Costco is hiring.

Before you take that step, though, you may be curious as to what sort of wage you might be looking at as a Costco employee. And the answer might surprise you — in a good way.

A far from shabby hourly rate

During Costco’s most recent earnings call, CFO Richard Galanti was asked to talk about employee wages. And the details he revealed actually paint a pretty positive picture.

Galanti said that 90% of Costco’s employees are paid hourly. And the average hourly wage for Costco employees is close to $26. So for someone working 40 hours a week and 52 weeks a year, that’s an annual income of about $54,000.

Granted, at that income level, you’re not necessarily rolling in dough and signing a $500,000 mortgage loan. But in some parts of the country, it’s possible to more than get by on an annual income of $54,000, especially if you’re single.

Also, Costco warehouse positions may not require the same amount of schooling as a corporate job paying more. It’s common for corporate positions to want a college degree or some sort of college. If you skipped that step, you may find that you’re able to earn more at Costco than at a competing retailer, or a comparable job that doesn’t require a degree.

Costco employees get other nice benefits as well

Not only is Costco’s hourly wage fairly generous, but in addition, Costco employees are eligible for what Galanti described as a “very rich healthcare plan.” Plus, Costco employees are entitled to a 401(k) plan contribution on the company’s part. And that free money for retirement is available “irrespective of what an employee contributes to his or her 401(k),” Galanti said.

It’s also worth noting that Costco contributes anywhere from 3% to 9% of employee wages to a 401(k) based on years of service. And while a 3% match is fairly standard, a 9% match is notably generous.

Should you apply to work at Costco?

If you’re earning a lot less than $26 an hour and aren’t happy with your workplace benefits package (if it even exists), then it could pay to look into applying at Costco. Even if you’ve been working in a corporate environment, if you’re feeling burned out at this point, taking a few months to work at a place like Costco could provide the refresh you need to pursue a different long-term job down the line.

Of course, if you are offered a job at Costco, you’ll want to pay attention to the fine print. Just because the average hourly wage is around $26 doesn’t mean that’s what you’ll be getting, especially if you don’t have much experience.

And it’s a good idea to compare wages and benefits across retailers you want to work for to see which pays the most and offers the best perks. But if the idea of working at Costco appeals to you, then it’s certainly worth looking into.

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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 and Gala. The Motley Fool has a disclosure policy.

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In this housing market, beggars can’t be choosers. Keep reading to learn why one writer is saying “no way” to a certain type of home. 

I certainly haven’t been shy about my intention to buy a home of my very own in 2024. One of my favorite activities is walking around my neighborhood, listening to a podcast, and dreaming about what it might be like to live in some of my favorite local houses. When a home goes on the market, I look up the Zillow listing to see how much it’s going for — and what the inside looks like.

Yes, this is a silly preoccupation, but since I genuinely love my current neighborhood, it would be wonderful to buy a house here. By taking the time to investigate homes for sale locally, I figure I’m giving myself a leg up on budgeting for a mortgage loan. After all, as of this writing, the average rate on a 30-year fixed-rate mortgage loan is 7.57%, according to Freddie Mac — if I could save money on a mortgage by buying a less expensive house, that would help my finances.

One thing I’ve noticed about my neighborhood is how many multi-family properties are for sale for low, low prices. I live in one of these now as a renter, and you might assume I’d be down to buy one, especially if I can get one for half the cost of a single-family home. You’d be wrong, though. Here’s why.

Multi-family homes are cheap — but why?

Simply put, these homes are priced so low compared to many other listings in my city because they are in poor condition. There are a few reasons for this.

First, many of them have been rental properties for many years. And it’s an unfortunate fact a lot of landlords are not as proactive about maintenance and repairs (and even just general upkeep) as they might be for a home they lived in themselves. And since renters are not expected to perform maintenance tasks, they fall by the wayside.

A lot of the multi-family houses in my city are on the older side — meaning, early 20th century. A century-old home that’s had uneven maintenance over a long period isn’t exactly appealing if you’re hoping to become a homeowner and not immediately dump a ton of money into a property.

It seems likely that many of these multi-family homes will be bought by investors as rental properties — thereby continuing the cycle of landlords who don’t invest in upkeep and renovations, and renters who don’t have the means or obligation to do so, either. Others may sit on the market — when I was researching to write this story, I saw some Zillow listings for multi-family homes in my ZIP code that were months old. In a market where homes are snapped up in a few days, max, this is extremely telling.

I’m glad my days of multi-family living are nearly over

As I noted above, I rent the top half of a multi-family home now. So I’m already extremely familiar with the challenges of living in such a property. My rental didn’t undergo any heavy-duty (and badly needed) renovations before I moved in and there’s a lot of, shall we say, quirks that I live with.

The windows in the kitchen, dining room, and living room are extremely old and in very poor condition — I feel the winter wind in my living room if I don’t seal the windows with plastic sheeting. And the electrical wiring here is such that I can’t run my living room air conditioner and my hair dryer or microwave at the same time, or I’ll trip a fuse. And said air conditioner, microwave, and hair dryer are in three different rooms. In short, living here can be a challenge, despite the changes I’ve made.

Single-family homes are what I’m looking for

I won’t be buying a multi-family house. I have no desire to spend a ton of money on renovations and bringing a home up to modern electrical code before I can feel safe and comfortable living there. I also don’t want to be a landlord myself. And I don’t want to buy such a large home (many of the multi-family homes for sale near me are upward of 3,000 square feet, divided into two or more living spaces) for just my cats and me.

Instead, I’ll be focusing my search on small single-family homes that have been cared for. I’m not expecting to purchase a newer property at my price point (plus, there aren’t really any newer homes in this area), but based on my time poring over Zillow listings, there are affordable homes here that will work for me. I expect to have to make some changes to a home I buy — at the very least, I’ll be painting (because wall colors are a very personal choice). But ideally, whatever fixes and repairs I have to make to a home will be covered by the cash in my savings account.

If you’re hoping to get a mortgage and buy a home yourself, it’s worth taking the time to research the kinds of properties that are for sale in your city — and thinking about your own needs and wants as a prospective homeowner. The more you can narrow down what you’re looking for before it’s time to buy, the easier time you’ll have of finding the perfect home when the time comes.

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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 positions in and recommends Zillow Group. The Motley Fool has a disclosure policy.

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