Money Management

Costco is cracking down on people using cards that don’t belong to them in self-checkout. Learn what this means for you. 

Sharing is caring may be what you’re taught in kindergarten. But, Netflix recently decided that this no longer applies to the password for its streaming service. While Netflix once endorsed the idea of people splitting account access, tweeting out “Love is sharing a password,” back in 2017, the company has begun making moves to stop the practice.

In fact, the streaming service has now issued a warning via email and on the plan subscription page indicating an account can only be used by people within the same household. Netflix is in the process of requiring users to set a primary location and pay extra fees for sub-accounts elsewhere.

Now, it seems like Netflix is no longer the only beloved brand that doesn’t want people to share the love and instead wants people to pay for their own membership fees out of their bank accounts. Costco is getting in on the game as well. And this is sure to disappoint many shoppers at the members-only warehouse club who enjoy shared account access.

Costco cracks down on shared cards in self-checkout

It’s a well-known rule that shopping at Costco requires a membership card. And, both Gold Star and Executive members receive cards for two individuals.

However, the terms of service indicate these cards are supposed to be used by individuals residing at the same location. Members can also choose to add additional users for an extra $60 per person.

Unfortunately, Costco has indicated that it has noticed an increase in shoppers using membership cards belonging to others — primarily at the self-checkout. In other words, members are sharing their cards with friends and family, who are then able to visit the warehouse and buy items in the self-checkout line with their borrowed card. This offers them access to the club’s discounted prices.

In an effort to stop this practice, the company is stepping up its efforts to verify that cards are being used only by authorized members. Specifically, in several stores, shoppers at self-checkout have been asked to provide their membership card with their photo, or their membership card with another form of ID.

This additional security measure has been reported in multiple Costco locations across the U.S., including in Michigan and Texas. While Costco indicated this does not reflect a change in official policy — which has always limited card use to people in the same household — it is a change in how the policy is enforced. And, recent company statements suggest this new procedure is likely to continue and spread to other stores nationwide.

Should you keep a Costco membership if you can’t share it?

Costco memberships start at $60 annually for a Gold Star membership, but jump to $120 for Executive members. This isn’t a small amount to put on your credit cards, so it’s understandable that people might want to split the cost and share their memberships — even with individuals outside of their households.

With Costco making this more difficult, those who were previously sharing cards will need to decide if paying the additional fee for more users — or buying their own individual memberships — is worth it. Ultimately, this will be determined by whether the savings that comes from shopping at Costco outweighs the annual membership fee.

To determine that, you can compare prices at Costco versus your other local grocery stores to see how much less you spend. Think about how often you go to Costco, how frequently you buy cheaper items there, and whether these purchases make up for the $60 or more you’d have to spend each year to get a membership card of your own.

If you decide to opt out, just be aware that you could soon face a good chance of getting your ID checked — and your purchases denied — if you’re trying to shop with a membership card that isn’t really yours.

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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.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Netflix. The Motley Fool has a disclosure policy.

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Starting to pack for a summer getaway? Don’t forget the essentials you need to make your trip great. Check out these winning Costco summer vacation finds. 

With summer already here, you may be starting to pack for an upcoming vacation. In addition to creating a winning trip itinerary, you’ll want to ensure you have all the items you need for a memorable trip. Costco shoppers can use their membership perks to pick up necessary vacation finds without disregarding their budget. Here are the Costco finds you should add to your shopping cart before you jet off on summer vacation.

1. Pendleton Packable Blanket

If you plan to spend some time at the beach or enjoy picnics at the park during your getaway, you may want to consider bringing a packable blanket. Costco’s Pendleton Packable Blanket is a lightweight blanket that can be folded and carried using the easy carry handle and adjustable shoulder strap. The blanket features a water-resistant shell and is available in various designs. You can buy this must-have summer vacation find for less than $30.

2. CORE 6-person Instant Cabin Tent

Perhaps you’re planning a summer camping trip instead of a beach adventure. In that case, you’ll want a sturdy and comfortable tent that will protect you from the elements. Costco sells the CORE 6-person Instant Cabin Tent for less than $160. You can put it up within 60 seconds, so you won’t waste your precious vacation time struggling to set up your tent.

3. Banana Boat Sport Ultra Broad Spectrum Sunscreen

If you’re going to spend a lot of time in the sun, you don’t want to forget proper sun protection. You can buy a three-pack of Banana Boat Sport Ultra Broad Spectrum, SPF 50 Sunscreen at your local Costco club. Purchasing this multipack is an excellent way to ensure you don’t accidentally run out of sunscreen during your vacation.

4. Harbor Bay Beach Towels

Whether you’re spending time at the pool or beach, you’ll want to pack high-quality beach towels. Costco sells 100% cotton Harbor Bay Beach Towels in a two-pack. After picking up a couple of packs of these towels, you’ll be all set for your adventures in the water.

5. Tommy Bahama 8 ft Beach Umbrella

For those headed to the beach this summer, it can be beneficial to have a beach umbrella. Many beaches allow beachgoers to rent umbrellas for a fee. But rental costs like this can quickly add up and impact your personal finances. Luckily, you don’t need to spend a fortune, because you can pick up a Tommy Bahama 8 ft Beach Umbrella at Costco for under $50.

6. GoSports Stained Wood Cornhole Set

Are you looking for activities to keep the whole family entertained? Consider picking up some outdoor toys and games! You can pick up the regulation-size GoSports Stained Wood Cornhole Set at your local Costco club. It includes eight dual-sided bean bags and a carrying case. Since it costs under $150, you can have fun all vacation long without draining your checking account.

7. First Aid Only Home & Go First Aid Kit

Being prepared for potential accidents and emergencies is never a bad idea, especially while on vacation. Costco sells the First Aid Only Home & Go First Aid Kit for under $20. This 312-piece kit includes all the essentials in a sturdy zipper pack for easy packing. At that affordable price, you can make sure you’re prepared for the unexpected without racking up credit card debt.

A Costco membership can be a win for your wallet

Should you join Costco? Many people find a warehouse club membership like Costco a worthwhile investment. You can load up on everyday food items, household goods, and snacks all year round. But you can also find fantastic deals on essentials that improve your summer vacation experience. If you love a good deal, you may want to consider becoming a Costco member.

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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 Costco Wholesale. The Motley Fool has a disclosure policy.

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Some home renovations projects will give you more value than others. Read on to learn which projects will earn you more bang for your buck. 

When it comes to getting top dollar for your home, you’ll have to prepare it for sale. Often that means cleaning, decluttering, touching up faded paint, tightening loose cabinet hardware, and, sometimes, renovating parts of your home.

Home renovation projects, however, can be expensive and don’t always give you the best bang for your buck. While you may think you need to remodel your bathrooms and kitchen to attract buyers, in truth the projects that boost home value are often those that improve energy efficiency and enhance curbside appeal.

With that mind, let’s look at Remodeling Magazine’s most recent “Cost vs. Value” report to see which home improvement projects will likely give you the highest return on investment.

1. HVAC conversion

Cost: $17,747Resale value: $18,366Percentage recouped: 103.5%

The project that likely gives you the most resale value is installing an electric heat pump in place of older systems that depend on fossil fuels. The Cost vs. Value report assumes you’re installing this for a home of about 2,000 square feet, so the actual cost will vary depending on the size of your home.

The appeal of an electric heat pump is that it can provide the same amount of heating and cooling as a traditional furnace or baseboard heater but without using as much energy. This can emit less carbon, cut down on electricity bills, and over the long potentially help home buyers save money.

2. Garage door replacement

Cost: $4,302Resale value: $4,418Percentage recouped: 102.7%

Here a garage door replacement would involve removing and disposing of a door that’s roughly 16 x 7 feet, together with the tracks. The replacement door would be made of high-tensile-strength steel and would be installed with insulation and thermal seals.

Garage door replacements are typically good investments because they’re affordable and can boost curbside appeal. It can make your home stand out, or, if your home already has a decent exterior, remove a potential eyesore, especially if your current door has dents, cracks, or stains.

3. Residing with stone veneer

Cost: $10,925Resale value: $11,177Percentage recouped: 102.3%

Replacing the bottom portion of your home with a band of stone veneer is another way to boost curbside appeal. The project as outlined in the Cost vs. Value report assumes your home has vinyl siding and would recommend only replacing the bottom third with stone veneer. It also recommends adding stone veneer to your entryway, such as replacing columns and building an archway with a keystone.

4. Entry door replacement

Cost: $2,214Resale value: $2,235Percentage recouped: 100.9%

Entry door replacements are another low-cost project that can leave home buyers with a good first impression. The Cost vs. Value report recommends replacing your current door with a 20-gauge steel door, which would give you the best balance between cost and resale value.

Should you renovate your home before selling it?

It might be worth renovating your home, but only if you’re adding value and recouping expenses. The projects listed above can give you a good place to start. But if you’re working with a real estate agent, they might know other home renovations that have traditionally added value to properties in your area.

As far as financing renovations goes, it would be best to avoid loans and credit cards with high interest rates, as interest payments would only make the projects more expensive. You might also want to avoid second mortgages and refinancing loans, as the fees associated with these would eat into the project’s resale value.

Cash is preferable, but if you have to borrow, consider a credit card with an introductory 0% APR. These cards won’t charge interest for a specific period, though you’ll want to pay off the balance before the 0% APR ends, as delaying would mean paying interest. Some credit cards have longer zero-interest periods than others, so be sure to compare the best 0% APR credit cards before applying.

Our picks for the best credit cards

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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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Credit cards can do a lot of good for your finances. Keep reading to learn what happens if you don’t use them at all. 

Credit card ownership is very common among Americans. Recent research from The Ascent found that 30% of those surveyed had one credit card, while 24% had two, and 26% reported having three or more. If you add up those numbers, you’ll find that leaves 20% of survey respondents without any credit cards at all.

Around here, we recommend that most consumers have one or two credit cards. Credit cards offer a lot of benefits, and often for a pretty low price of entry (and in the case of no annual fee credit cards, that price is $0). Credit cards can help you build credit, protect your money, and earn rewards on your spending. But no one is required to have a credit card (or two, or three). Let’s consider what fates might befall you if you skip opening a credit card account.

You might struggle to build credit

It is possible to build credit without a credit card of your own, but it involves more hoops to jump through than just, you know, getting and using a credit card. You could sign up for a service like Experian Boost, which lets the credit bureau Experian monitor bill payments like those for utility services and your cellphone.

You could take out a credit-builder loan through a bank or a credit union (which will charge you interest for the privilege). Or, you could ask someone you trust (and who trusts you) with strong credit to add you as an authorized user on their credit card. Applying for your own would be more straightforward than any of these options, however, and you’ll build credit as you spend on your card and then pay your balance off.

You could be at greater risk of fraud

Just because you don’t have a credit card, it doesn’t mean you’ll have to pay for everything in cash. You can certainly use payment methods like debit card, checks, and payment apps linked to your checking account. The problem is that none of these payment methods are as secure as credit cards. They’re all linked directly to your bank account, and therefore, your money.

When you pay with a credit card, you’re paying with the card issuer’s money, and you’ll later pay it back when you pay your bill. Debit cards have much more limited fraud protections, and you could leave yourself open to overdrafting your bank account if you’re not careful. Check fraud has long been a problem, and check washing is an old form of fraud that’s back in the news again. Payment apps are handy and useful, but if you’re not careful, you could fall victim to scammers there too.

You may have to jump through more hoops for some payments

Let’s say you’re planning an epic road trip vacation, but you don’t have a credit card. While you will be able to rent some wheels for the trip, you’ll have to jump through more hoops. Some rental car companies will require a deposit to rent a car, or you might be limited in what models you can rent, or you might even need to undergo a credit check to pay with a debit card.

What about booking a hotel room? Again, you don’t strictly have to use a credit card for a hotel room. But again, expect more of those hoops. You might need to cope with a large hold on your debit card (thus tying up that money) during your stay. Or you might need to find smaller independent hotels/motels for your trip, as they may be more likely to accept non-credit card payments.

Buying gas without a credit card is another headache. You might fall prey to “skimmers” who seek to steal your debit card information (and might therefore gain access to your bank account). You could also have a hold put on your account for far more than you spent on gas — it’s likely that you’re not planning to spend $175 on one tank of gas, but that’s what the hold could be on your Visa or Mastercard-linked debit card. And if you opt to pay in cash you’ll need to make the trek into the station to pay at the counter. Not super convenient.

You won’t earn rewards on your spending

One of the best things about credit cards is getting to earn cash back or points on your everyday spending. This can improve your life in many ways, especially if you seek out credit cards that work especially well for you. For example, one of my favorite cards pays me a high percentage of cash back on my spending at grocery stores, which is a sizable part of my budget. Rewards on debit cards are much harder to come by.

You never have to pay interest on a credit card balance

There has to be at least one perk of forgoing credit cards altogether. And since credit card interest rates average around 20%, you have the potential to save quite a bit of money if you never have to pay it. That said, you also don’t have to pay interest on a credit card even if you have one (or two, or three). If you make it a point to never spend more than you can afford to pay back before the end of the billing cycle, you’ll avoid interest charges completely.

Credit cards have some pretty sweet perks, and as you can see, some parts of modern life can be a lot more risky and much more of a hassle without one. While you don’t have to get a credit card, it’ll be a lot easier to build credit and avoid fraud if you do.

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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 Mastercard and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.

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If you need a convenient way to get a car without investing a lot of money upfront, leasing could be worth it. Find out what to consider. 

The cost of purchasing a new car has significantly increased since the COVID-19 pandemic. In May 2023, the average cost of a new vehicle was estimated at $48,528, exhibiting a whopping 30% increase since right before the pandemic. This surge in car prices has made the purchase of a new vehicle more unaffordable for most people. However, there is an alternative solution that may allow you to attain a car without investing a lot of money upfront: leasing. With car prices at all-time highs, is it worth leasing one until prices come down?

How does a car lease work?

A car lease is an agreement between a person and a dealership that allows the person to use a car for a predetermined amount of time, typically two to three years. During this period, the person pays a monthly fee, which covers the depreciation of the vehicle as well as interest on the lease.

At the end of the lease, the person can either return the car and walk away, or purchase it for an agreed-upon price. Leasing can be a practical option for those who want to drive a new car but don’t want to commit to a long-term loan.

Additionally, because the monthly payments are typically lower than loan payments, a lease can allow you to purchase a nicer car with a lower price tag. However, it’s important to weigh the costs and benefits before signing a lease, as there will be restrictions on mileage and wear and tear.

Advantages of leasing

Leasing provides a viable way to get a new car without investing a lot of money upfront. When you lease, the monthly payments are generally lower than if you were to purchase the car. This is because you’re only financing the vehicle’s depreciation during the lease term, rather than the entire cost.

Additionally, since you are only leasing the car for a fixed period of time, you may be able to switch to a new car after the lease term ends and prices may have come down by then. Furthermore, leasing enables you to drive a new car with up-to-date features, reducing the chances of running into repair issues commonly found in old cars.

Drawbacks of leasing

One of the significant drawbacks of leasing is that you do not own the car, you’re only borrowing it for a specific period. This means that there will be rules that you must follow, including mileage restrictions and limitations on customizations.

Financing a new car will generally cost you more than leasing, but you will have the freedom to sell the car whenever you want. You are stuck in your lease for the duration of the term. Ending your lease early can be expensive due to penalties, and modifying your car can lead to fines and penalties.

But if you purchase a car, you can eliminate payments once you pay off your loan. Then you have an asset that is paid off. Additionally, due to increased demand for leasing as an alternative to purchasing, monthly payments for leased vehicles are also increasing, making the leasing option less attractive.

Car leases have dropped significantly

The pandemic brought about significant changes in the car market. Prior to COVID-19, leasing was a popular option for almost one-third of new car buyers. However, this trend has declined sharply, with only 19% opting to lease in today’s market.

This decrease in leasing is primarily due to higher new car prices. These high prices have caused lease payments to skyrocket, making them unaffordable for many buyers. Currently, the average lease payment equals the average loan payment from 2020.

In addition, lessees are holding onto their cars for longer, because leased vehicles are now surpassing their buyout price. Normally, lessees would return the car to the dealer and initiate a new lease agreement, but recent price increases have changed that.

Another factor is that the current lease offers are not appealing to consumers. With automakers and dealers making more profit off a sale than a lease, they are not offering attractive lease terms. As new car demand continues to exceed supply, the trend of declining car leasing is likely to continue.

Factors to consider before leasing

Before leasing a car, it is essential to weigh all the options and consider all your financial obligations. You should ensure that the monthly lease payments fit into your budget, so review your finances to determine whether you can afford the payments.

Additionally, take into account the length of the lease term, the annual mileage allowance, and the potential costs that come with ending your lease early. It is advisable to research the car model that you want to lease and compare prices from different dealerships to ensure you get the best lease deal.

Consider leasing alternatives

Rather than leasing, it might be best to consider alternatives such as buying a used car. The average cost of a used car has dropped and is now $27,256, about 45% lower than the cost of a new car.

There are two ways to get a car loan, one from the dealer or through outside financing, such as a bank. Getting outside financing can save you thousands of dollars, since dealers mark up the interest rates for loans they arrange.

Despite the lower monthly payments of a lease, the high price of cars has made leasing more expensive and less appealing. Before making a decision to buy or lease a car, do your research. You should factor in your personal and financial situation as well as other leasing-related considerations before making decisions. It is always advisable to shop around for the best deals, compare prices, and be sure you understand all terms and conditions. Leasing alternatives such as buying a used car or buying a car with outside financing could be better suited to your personal situation and needs.

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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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Credit cards are one of the most easily accessible and user-friendly money tools out there. Read on to learn why they’re best approached with caution, though. 

Despite what some well-known and especially loud voices in the personal finance space will tell you, credit cards aren’t evil. In fact, they’re one of the best financial tools out there for everyday people like you and me.

Credit cards are widely available, and you can even find them with no annual fee. In exchange for using one, you can earn rewards in the form of cash back and points for future purchases. A credit card is the easiest way to build credit, as when you make purchases using it and then pay your bill (on time and ideally, in full) every month, you’ll show creditors that you can be responsible with borrowed money. And credit cards come with robust safety features, such as fraud protection.

Just because credit cards come with these useful features doesn’t mean it’s not possible to get into trouble with them. Overspending is a particular risk of credit card usage, because it can be easy to get carried away and forget that all you spend must be paid back. Here’s what you can expect if you overspend using your credit card.

You could max out the card

The possibility of this happening is dependent on your credit card limit and the kind of spending you do, but it’s certainly possible for a lower-limit card (which is what you might have if you’re new to credit cards). Maxing out a credit card is when you spend the entire allotted credit limit, leaving you with $0 in available credit and a big bill to pay.

If this happens, any additional transactions you try to make will be declined. If you’ve opted in for over-limit protection, you will be able to spend more, but you’ll be charged a fee for doing so. It’s not a good idea to max out your credit card, so keep your credit limit top of mind when using the card.

Your credit utilization ratio might end up too high

Charge too much on a credit card and your credit utilization ratio will increase. Your credit utilization ratio is the percentage of your available credit that you’re using at any given time. Let’s say you have a credit card limit of $10,000 on your credit card, but you’ve charged $4,000 worth of purchases on it. In this instance, you have a credit utilization ratio of 40%. However, it’s best to keep this number under 30% to avoid credit score damage.

Your credit score could take a hit

If you’ve overspent on your credit card and ended up with too high of a credit utilization ratio, your credit score could be at risk. Credit scores are made up of different factors that are also weighted differently to reflect their impact.

For your FICO® Score (the one used by 90% of lenders), credit utilization ratio makes up 30% of your score. It’s this important (second only to payment history, which is 35% of your score) because credit usage is reflective of your financial situation. If you’re so heavily dependent on your credit cards to maintain your lifestyle that you are routinely using more than 30% of your available credit, it signals to lenders that you might be in financial trouble now, or will be in the future.

You might have to pay interest on your balance

It stands to reason that overspending on a credit card means that you lack the money to pay off your balance before you’re charged interest on it. Credit card interest is bad news and having to pay interest on a huge balance can sink your finances fast. The average credit card interest rate is over 20%, and interest charges are compounded daily, so rolling over a balance month to month just means you’ll pay a lot more to get rid of your debt. It’s not a good situation to be in, and overspending on your credit card is best avoided for this reason, too.

Credit cards can be a great way to build credit, take advantage of fraud protection, and earn rewards on your spending. But they are best handled with care, so be mindful of how much you’re spending and do your best to use your credit card responsibly.

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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 a disclosure policy.

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