Money Management

Costco’s prices are hard to beat. But Dollar Tree is giving the warehouse a run for its money. Find out which items are cheaper at Dollar Tree here. 

When it comes to buying things in bulk, few stores can compete with the low prices of warehouse clubs like Costco. But lately another discount store has been flexing its muscles and showing warehouse retailers they’re not the only ones who can offer savings on bulk items. That store would be Dollar Tree.

Yes, when you buy goods online, Dollar Tree will sell you them in bulk. As in its stores, most goods bought on Dollar Tree’s website are $1.25 per unit. Sometimes the bulk purchases don’t make sense — unless you want to buy 24 toilet bowl brushes at a time — but other times the bulk goods are sold at better per-unit prices than the king of bulk goods itself, Costco.

There are some caveats to keep in mind — like the quality of your goods and shipping charges — but if you’re looking for the lowest prices possible for your personal finance goals, here are five popular products that are cheaper at Dollar Tree.

1. Toilet paper

Dollar Tree: $0.31 per roll (240 sheets per roll)Costco: $0.69 per roll (231 sheets)

Costco and Dollar Tree both have lower prices on toilet paper than most grocery stores. But Dollar Tree has a surprisingly better value. When comparing Dollar Tree’s “Strong and Soft” rolls with Costco’s Ultra Soft, Dollar Tree sells toilet paper at nearly half the price.

One thing to keep in mind — Dollar Tree requires you to buy a minimum of 24 packs of four rolls a piece. You’ll get 96 rolls for $30, which is a slightly higher sticker price than Costco’s 36 rolls at $24.99.

2. Kitchen drawstring trash bags (13 gallon)

Dollar Tree: $0.096 per bagCostco: $0.10 per bag

Costco’s Kirkland Kitchen Drawstring Bags come in at $20.49 for 200 bags, while Dollar Tree sells boxes of 13 at $1.25 a piece. The minimum purchase requirement at Dollar Tree is 48 (or 624 bags) for $60.

As far as quality goes, I’ve never used Dollar Tree trash bags, but I’m a big fan of Costco’s Kitchen bags. I use them to empty our cats’ litter boxes and they never rip, even when the bag is already filled with trash. Before you buy 624 garbage bags from Dollar Tree, I recommend going to the store, buying one box, and testing them out first.

3. Baby wipes

Dollar Tree: $0.017 per wipeCostco: $0.024 per wipe

This is a great Dollar Tree buy for parents with newborns — for $1.25, you get 72 Fisher-Price Fragrance-Free baby wipes. You have to buy at least 12 packs for $15. But even so, the price is slightly less than Costco’s pack of 900 wipes for $21.99.

4. Batteries (AA)

Dollar Tree: $0.31 per batteryCostco: $0.34 per battery

Dollar Tree batteries are just a wee bit cheaper than Costco’s batteries: $1.25 for four Panasonic AA Super Heavy Duty batteries versus 48 Kirkland Signature AA batteries at $16.49.

As far as which battery is better: the Kirkland batteries are made by Duracell. A recent Canadian study found that Duracell batteries last almost three times as long as Panasonic Super Heavy: 7.8 hours versus 25.4. If we compare these two batteries by their power, Costco’s batteries might be the better long-term buy. However, if you’re just looking for cheap batteries for low-power intensive use, Dollar Tree will give you a lower price.

5. Three-ring binders

Dollar Tree: $1.25Costco: $2.13

Dollar Tree’s three-ring binders are surprisingly cheap — $1.25 each. It’s hard to beat that anymore, but Costco comes close at $2.13 per binder when you buy a pack of six. Again, you may want to buy one first to ensure the quality is up to snuff before buying six of them.

Avoid shipping charges at Dollar Tree

One thing to keep in mind is that Dollar Tree will charge you for shipping when you make purchases online, while Costco’s online prices have shipping charges built into them. You can avoid shipping fees at Dollar Tree, however, by picking up items in store.

All in all, Dollar Tree has very low prices on bulk items. However, I would test out the products first to make sure their value stacks up against the price. Because you have to buy these items in very large quantities from Dollar Tree’s website to save so much money, it would be a waste to buy something that doesn’t suit your taste. You can buy them in smaller quantities by shopping in-store, then opting for the bulk items online.

Costco’s products, on the other hand, are known for their value. Even if the prices are slightly higher, you might be getting better quality. That won’t always be the case, but bear this in mind when comparing the two retailers, as lower prices don’t always mean you’re getting the best deal.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

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.The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

 Read More 

I have money set aside in my HSA. Read on to see why I try not to use it. 

When my daughter came home from a party in June with a horribly bruised finger, I had a bad feeling about it. I gave it a couple of days, but when it didn’t start to heal, I took her to an orthopedist. And lo and behold, her finger was broken. Not only did that mean several weeks without sports, piano, or other activities for my poor daughter, but it also meant an $850 medical bill for me to contend with.

Now, because my family maxed out our HSA last year at $7,300, we had enough of a balance in that account to cover the $850 orthopedist bill. But I opted not to raid my HSA and instead take the money out of my savings account for one big reason.

It pays to leave your HSA alone

When you have money in a flexible spending account (FSA), it pays to tap your balance as soon as you rack up medical expenses. FSAs require you to use up your plan balance every year or otherwise risk forfeiting some of your money.

HSAs work differently. With an HSA, there’s no time limit to using your funds. You can contribute to your account this year and withdraw that money in 2042 should you so choose.

Plus, HSAs allow you to invest money you don’t need to withdraw right away so you can grow your balance into a larger sum. And because investment gains in an HSA are tax free, that’s a tempting offer.

It’s for this reason that I opted not to touch my HSA when a large medical bill landed in my lap. Because I knew I had the money in savings, I figured it made more sense to take a withdrawal from there than to tap my HSA and lose out on the chance to invest that $850 in a tax-free manner.

See, over the past 50 years, the stock market has delivered an average annual return of 10%. Even if the returns I get in my HSA aren’t as high, let’s say I’m able to leave that $850 in my account for 20 years and score a 7% return on it. That still means growing that $850 into about $3,300.

I’m also well aware that healthcare costs tend to be higher in retirement than during people’s working years. So I’d rather have a larger HSA balance then, when medical spending might eat up a lot more of my income.

Plus, one cool thing about HSAs is that they effectively convert to a traditional retirement savings plan once you turn 65. What this means is that you’re not penalized for taking HSA withdrawals for non-medical purposes from that point onward.

So, let’s say you manage to amass a $200,000 HSA balance by age 65, and your health ends up being great during retirement. You’re not at risk of wasting or forfeiting that money because you can withdraw it for things like home repairs, groceries, and entertainment without penalty. All that happens is that non-medical withdrawals are subject to taxes (which is how a traditional IRA works), whereas medical withdrawals are tax free.

You need emergency savings to leave your HSA untapped

The reason my strategy of not touching my HSA for near-term medical bills works is that I have other funds set aside in savings to cover such expenses. If you want the option to leave your HSA untapped and invested as long as possible, then you’ll need to make sure to build an emergency fund that can cover unplanned medical bills.

If you take that step, you might end up with a lot of money in your HSA over time. And that could make for a far less financially stressful retirement.

These savings accounts are FDIC insured and could earn you 12x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you 12x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

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.

 Read More 

Looking to buy a home? Make sure you consider how current home prices and low housing inventory could impact your search. Find out why home prices may rise. 

The home-buying process can be stressful, especially during a challenging market. For those looking to become homeowners within the next few months, it’s essential to have realistic expectations.

A recent Zillow report predicts home values will increase by 5.8% this year. While this prediction is excellent news for existing homeowners, it will likely disappoint hopeful buyers.

The current U.S. home supply is lower than last year

It’s not the best time to buy a home, especially in the United States. According to Zillow’s July 2023 Market Report, there were 26% fewer homes on the market than there were last July. That statistic is slightly better than June 2023, when there were 28% fewer homes than there were the year prior.

With fewer available homes nationwide, it makes buying more difficult when competing with other hopeful buyers. Soon-to-be-buyers should keep this in mind as they put in offers.

Why are there fewer homes on the market? One big reason inventory is lower than last year is likely due to current mortgage rates. With higher, less attractive rates, existing homeowners have little incentive to list their homes. Those with mortgage rates well below current rates don’t want to buy a new home and take on a new loan with a higher rate.

Home values may continue to increase this year

Existing homeowners have benefited from rising home values and may continue to do so. Zillow’s Home Value and Sales Forecast for July 2023 expects home values to increase by 5.8% in 2023. The real estate marketplace company notes that tight inventory conditions have continued to put upward pressure on home prices.

What could this prediction mean for those looking to buy? It could mean they will need to spend more for a home. Hopeful buyers should prepare to spend more money than they may prefer when buying a home.

Before starting the home-buying process, it’s an excellent idea to consider potential home value increases when setting a home-buying budget. You don’t want to buy beyond your means and regret your decision. The last thing you want to do is stress about your personal finances soon after closing on a property because your mortgage is unaffordable.

As you begin the home search process, be honest about your financial situation when setting a budget, and consider current mortgage rates. You can use The Ascent’s mortgage calculator to estimate monthly costs, including interest and property taxes, before buying so you’re more prepared.

You should also be realistic about current home sale prices and home values as you start looking so you make offers that sellers will consider. If not, other buyers may scoop up the homes you like. If you’re unsure about the current market in your area, it’s best to reach out to a real estate agent for guidance. Working with a professional can ease stress.

Stay committed, and don’t give up as you search for a home

If you intend to buy a home soon, don’t let market conditions and predictions get you down. Continue to stay focused on the end goal. If you’re not in a time crunch, you may want to continue to stash cash into a high-yield savings account. As your money sits in the bank, it’ll earn interest, and your bank account balance will increase.

While mortgage rates and home prices are generally out of your control, you have some control over monthly mortgage costs. By making a larger down payment when buying, you’ll need to finance less. Doing this can make your mortgage payment more affordable and save you money on interest costs in the long run. If you’re considering buying your first home, check out these first-time home buyer tips.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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 Zillow Group. The Motley Fool has a disclosure policy.

 Read More 

Sam’s Club has its benefits. But read on to see why this Costco fan has no plans to make a switch. 

Maintaining a warehouse club membership is something that absolutely makes sense for my family. As a gang of five, we go through our fair share of groceries. And being able to buy food in bulk allows for a lot of savings during the year.

In my area, I happen to have access to not one, but two Costco locations that are about 15 minutes away from my house. There’s also a Sam’s Club not much farther — about a 20-minute drive.

I’ve been tempted at times to sign up for Sam’s Club instead of Costco because a membership there is less expensive. A basic membership at Costco costs $60, while an Executive membership costs $120.

I have the Executive membership because it gives me cash back on my purchases — enough cash back to more than make up for the $60 upgrade and still leave me with extra money. By contrast, a basic membership at Sam’s Club only costs $50, while a Plus membership, which gives you cash back on your purchases, costs $110.

But even though Sam’s Club fees are cheaper than Costco’s, I intend to remain a loyal Costco member for the long haul. And the reason largely boils down to my love of the Costco bakery.

When you find products you really love

Both Costco and Sam’s Club offer great deals on pantry staples, household essentials, and an assortment of goods. But the main reason Costco remains my go-to source for bulk buying is that it sells many items in its bakery section that my family and I really enjoy.

Normally, my kids, husband, and I eat a fairly healthy breakfast. But on Saturday mornings, we share Costco muffins. It’s become a bit of a tradition in our house and it’s one we look forward to.

Costco’s giant-sized sheet cakes are also our preferred option for birthday parties, class parties, and other events where you need to feed a crowd. Not only are they affordable, but they’re actually quite tasty.

And let’s not forget Costco’s pumpkin cheesecake — a seasonal item I look forward to every fall. It may not be so good for my waistline, but it’s something I enjoy immensely.

It’s okay to spend a little more money to make yourself happy

I could easily justify a Costco membership over a Sam’s Club membership, despite the higher cost, by virtue of Costco being a bit closer to my home. But even if the drive was exactly the same, I’m at a point in my life where I have no guilt about spending an extra $10 a year to get access to a store that lets me buy the baked goods I love.

If money is extremely tight in your household right now, and you have equal access to both Costco and Sam’s Club, then it could make sense to go with the less expensive option. Plus, if you’re only looking for a basic membership, Sam’s Club commonly discounts those at various points during the year, whereas Costco rarely does. So in reality, you might save more than just $10 depending on when you sign up.

But if you’re doing okay financially and happen to have a preference for Costco like I do, don’t feel bad about it. There are many other steps you can take to make up the $10 extra you’re spending on Costco, like skipping one store-bought lunch a month, giving up a few Starbucks coffees, or simply making a point to buy groceries at sale prices.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Starbucks. The Motley Fool has a disclosure policy.

 Read More