Money Management

Costco and Sam’s Club may seem interchangeable, but one is actually quite different from the other. 

It’s been more than six months since I allowed my Sam’s Club membership to expire and joined Costco. There was nothing dramatic about my decision to make the change; after moving to a new state, Costco was simply closer to our house than Sam’s Club, and I’m all about convenience. Still, now that I’ve been a member of each warehouse club more than once over the years, I’m in a better position to determine if I prefer one over the other.

For me, Costco is the clear winner. Here’s why.

1. Greater savings

Through 2023, Sam’s Club is offering membership for only $25, half off the regular price. While that beats the $60 I paid to join Costco, Costco allows me to save more throughout the year. That’s money I can invest or use to boost my savings account.

How is that possible? It was only after joining Costco this time around that I remembered how much I trust Kirkland Signature brand items. My husband and I have moved extensively throughout our marriage, and while some moves are easier than others, they all require an adjustment period.

Recently, as I strolled through our new Costco, it occurred to me how much I appreciate the familiarity of Costco, specifically Kirkland products. No matter where we move, I can count on the nearest Costco warehouse to carry items we’re comfortable buying. Better yet, Kirkland-brand products are cheaper than name brands, and ultimately, I think that’s how I’m leaving Costco with a lower overall bill.

2. Higher quality

Both Costco and Sam’s Club offer quality goods, so this is strictly a matter of opinion. I have always found the quality of Costco produce superior to Sam’s Club. If I have to buy enough bananas to feed a jungle full of monkeys, I want to trust that nothing is bruised. And I can’t begin to tell you how guilty I feel when I throw out food.

As far as baked goods, Costco’s don’t taste like they were mass produced in a factory. They taste more like there’s a crew of bakers in a back room, churning out crescent rolls and sticky buns. I truly appreciate that.

Another thing that may impact my sense that Costco offers higher-quality products is that it only carries 4,000 products at a time. Sam’s Club carries between 6,000 and 7,000 items. As someone who loathes clutter and dislikes digging through tables of goods to find a bargain, it may be that I associate Costco’s tidiness with higher quality.

3. Healthier food options

It’s easy for me to find organic, cage-free options at Costco. It’s also easier to find fresh, ready-to-heat meals with no preservatives. If you don’t count the dark-chocolate-covered pretzels that inevitably find their way into my shopping basket, I typically leave Costco feeling good about my grown-up food choices.

4. Better travel options

My husband has spent years trying to transform me into a world traveler. Here’s the issue: I have the patience of a 2-year-old on a long flight, get motion sick on winding mountain roads, and miss my dogs like crazy when we’re away. Still, I’m trying to become a better travel partner. I’m even helping him plan our next trip.

That’s another area in which Costco shines brighter than Sam’s Club. Both warehouse stores offer vacation deals, but Costco’s selection of international destinations exceeds Sam’s Club’s options. Costco also has Sam’s beat when it comes to comprehensive travel packages.

5. Less oppressive vibe

I’ve spent decades writing about the way corporations treat their workers, and it’s no secret that a well-respected employee is a happy employee. Although I have no way of knowing how much another person actually likes their job, Costco workers seem happier to me. My perception could have something to do with how Costco treats its employees.

According to ZipRecruiter, the average hourly wage for Costco employees is $21. For Sam’s Club employees, the average is just shy of $17 per hour. It may not seem like a significant difference, but for the average Costco worker, that’s an extra $650 in the bank each month.

And, according to an Indeed.com survey, Costco employees give their company an overall rating of 4.1 out of 5 stars. What’s more, 83% say they believe that they’re fairly compensated. Sam’s Club employees give their company an overall rating of 3.4 out of 5 stars, and 54% believe they’re fairly paid.

Admittedly, with all the disputes going on in the world, a Costco vs. Sam’s Club debate does not rank in the top 1,000. Still, I’m in a good place — saving money while shopping at a store I feel good about.

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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.Dana George 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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The only supercar I can charge says “Hot Wheels” on the side… 

It’s in every movie about affluence: That scene where the rich person plonks down their no-limit Black card and charges a yacht, or a supercar, or an entire hotel because they want to fire that one guy who looked at them funny.

But is every person with a bit of money in the bank really walking around with invite-only, $5,000-annual-fee credit cards? Sorry to break the illusion, but no, they’re definitely not.

In fact, according to our recent study on credit card habits of the wealthy, most rich folks are using the same cards we are — they just have much bigger balances.

Everyone loves a cash back card

When asked about their credit card preferences, respondents with a net worth over $1 million were most likely to have a cash back card, with 59% saying they currently owned at least one.

That makes them the same as everyone else, since cash back was the favorite for respondents with lower net worths as well. Moreover, folks with net worths below $1 million are actually more likely to have a cash back card, with 72% of respondents saying they currently have one.

The popularity of cash back cards is no surprise. Cash back rewards are simpler to earn and redeem than other types of rewards. You don’t need to spend any time worrying about how to maximize your redemption or where to transfer your points. Some cards even let you redeem cash back automatically as you go.

Mo’ money, mo’ travel rewards

Perhaps more interesting is the number of wealthy people with travel rewards cards; nearly half (49%) said they have a travel rewards card. In comparison, less than a quarter (23%) of respondents with a lower net worth said they had at least one travel rewards card.

This makes a certain amount of sense, when you think about it. People in this wealth bracket are more likely to be older, more established in their careers, with more money and time to travel. (Plus, travel cards aren’t cheap. Most of the top travel rewards cards have an annual fee, and the premium cards start around $500 a year.)

That said, travel rewards weren’t the only cards that the wealthy were more likely to have than folks with lower net worths. Besides cash back cards, wealthy respondents were more likely to have every other type of credit card. This includes student cards and store cards. Oddly enough, they were even more likely to have a secured credit card than folks with lower net worths, at 27% versus 19%.

Wealthy are more likely to have multiple cards

Overall, it all seems to come down to volume. Millionaires are simply more likely to have more cards. Only 9% of millionaires said they didn’t own a credit card at all, compared to nearly a quarter — 24% — of everyone else.

While more than a third (36%) of people with a net worth less than $1 million had a one-card wallet, only 22% of millionaires stopped at one card. Most of them, in fact, had two or more cards, with 37% having two cards and 21% stopping at three.

As for credit card collectors — folks with four or more cards — they’re more likely to have a high net worth, but they’re still not a big portion of the overall picture. Just 7% of folks with a lower net worth have four or more cards, while only 12% of folks with a net worth over $1 million had such large collections.

Interest is universal

While there may be a lot we can learn from the wealthy on how to save and invest, there are some lessons that may not be so great. Like paying off our credit cards.

Unfortunately, while millionaires are more likely to have multiple cards, they’re not always using them as wisely as they should. It turns out only a third of wealthy respondents are paying their statement balance in full each month. This means there are a lot of millionaires out there who are stuck paying high interest fees on their credit cards.

I suppose this goes to show you that some things really are universal.

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This borrowing option is really a mixed bag. 

One major benefit of buying a home is getting to build equity. Equity is calculated by taking the value of your home and subtracting the balance you owe on your mortgage. If your home could sell today for $400,000, and you owe $250,000 on your mortgage, it leaves you with $150,000 in equity.

As of late 2022, the average U.S. homeowner had about $300,000 of equity, according to CoreLogic. And that’s equity they can borrow against.

Now, you may be wondering if you should take out a home equity loan to do something like renovate your property. And you should know that while there are benefits to going this route, there’s a serious downside to consider, too.

The danger of borrowing against your home

A home equity loan can be an affordable way to borrow, and a relatively easy one. The reason? Your home is used as collateral on the loan you take out.

Let’s say you have $150,000 in home equity and you borrow $50,000. Your lender will know that in a worst-case scenario, it can force the sale of your home to get repaid, whereas with something like a personal loan, there’s no collateral to fall back on. Because of this, you might snag a more competitive interest rate on a home equity loan.

But there’s an obvious danger in taking out a home equity loan: If you fall behind on your payments, you risk losing your home.

This isn’t to say that you’ll get foreclosed on for missing a single payment, or even a couple of payments. But you should be aware that in a more extreme situation where you’re not able to make payments for a long period of time, that risk exists. And that’s why you must proceed with caution when taking out a home equity loan.

Is a personal loan a better bet?

A personal loan may be less dangerous, so to speak, than a home equity loan, because your home isn’t being used as collateral. But to qualify for a personal loan, or at least an affordable one, you need to have a pretty good credit score. If your credit is poor, you may find that you’re charged a lot of interest to take out a personal loan, making that option cost-prohibitive.

Also, any time you fall behind on any sort of loan, whether it’s a personal loan, home equity loan, or something else, that delinquency is reported to the credit bureaus, and it can damage your credit score in a very big way. That’s why it’s important to make sure you can afford your loan payments, no matter which type of loan you’re taking out.

If you crunch the numbers and find that you can work your home equity loan payments easily into your budget, then there’s less of a danger in taking one out. It’s when you sign up for loan payments you can’t really swing that you’re more likely to run into trouble.

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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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You can put together a great Easter basket without going broke. 

Easter is almost here. If you’ve been delaying buying essentials for Easter baskets, you still have time to score some affordable finds. Target is one retailer that won’t drain your checking account if you’ve got Easter baskets to build. We’ve outlined a few ways to fill an adorable Easter basket for under $20 to inspire you before you head to the store.

1. A basket that’s perfect for preschoolers

Your preschool-aged kiddo will love these fun goodies.

12 ct. Easter Plastic Eggs Mixed Colors: $1.00Sun Squad Bubble Solution (16 oz.): $1.00Reese’s Single Easter Egg (1.2 oz.): $1.19Haribo Happy Hoppers Gummy Candy (4 oz.): $1.19Crayola 24 ct. Washable Sidewalk Chalk, Bold Colors: $2.89Annie’s Organic Cheddar Bunnies Baked Snack Crackers (7.5 oz.): $3.19Annie’s Homegrown Organic Bunny Berry Patch Fruit Snacks (5 ct.): $3.99Make Believe Ideas Cuddly Bunny Stuffed Animal: $4.99

Total cost: $19.44

2. A basket for your sweetie with a sweet tooth

Know someone who only craves sweets? This basket is sure to be a win.

Nutella Easter Hazelnut Spread with Cocoa (1 oz.): $1.00Life Savers Easter Gummies Bunnies & Eggs (2 oz.): $1.19Peeps Easter Yellow Bunnies (1.5 oz/4 ct.): $1.19Cadbury Easter Milk Chocolate Mini Eggs (1.5 oz.): $1.19Whoppers Easter Robin Eggs (9 oz.): $3.49Sour Patch Kids Easter Jelly Beans Original (13 oz.): $3.49Reese’s Easter Peanut Butter Eggs (9.6 oz.): $3.79Annie’s Organic Friends Bunny Grahams Honey Baked Snacks (7.5 oz.): $3.89

Total cost: $19.23

3. The ideal basket for a picky pre-teen

This basket is sure to please even the pickiest pre-teen kid.

Nutella Easter Hazelnut Spread with Cocoa (1 oz.): $1.00Reese’s Pieces Easter Carrot (2.2 oz.): $1.19Cadbury Easter Milk Chocolate Mini Eggs (1.5 oz.): $1.19Favorite Day Easter Cookies N Cream Sitting Bunny (2.75 oz.): $2.00Peeps Easter Gummies Candy Bag (2.75 oz.): $1.99Que Bella Cooling Avocado Clay Mask (0.5 oz.): $1.99Favorite Day Carrot Cone Cheese Balls (1.7 oz.): $2.49Vaseline Original Lip Therapy Stick (0.16 oz. each/2 pk): $2.99Scunci 7 cm No Slip Grip Jaw Clips (2 ct.): $4.49

Total cost: $19.33

4. A nutritious basket for your favorite health nut

Even your healthiest family member deserves a basket of essentials.

Good & Gather California Raisins (6 oz./6 ct.): $1.99Angie’s Boomchickapop Sea Salt Popcorn (4.8 oz.): $2.99Bobo’s Stuff’d Apple Pie Bites (6.5 oz.): $3.99Justin’s Organic Dark Chocolate Peanut Butter Cups (1.4 oz.): $2.19Good & Gather Sea Salt Roasted Pistachios (7 oz.): $3.69Good & Gather Blueberry Muffin Date & Nut Bars (8 oz./5 ct.): $4.99

Total cost: $19.84

Tips to get the best deal at Target

If you’re on a tight budget but still want to celebrate Easter with your family, you’ll be happy to know that there are plenty of bargain buys available at Target. The following tips can help you save more money and get the best deal while filling up your cart.

Review the sales flier

Target publishes a weekly sales flier. As you outline your shopping list, don’t forget to look for the deals so you can stay on track with your spending. If you prefer, you can review prices in Target’s mobile app.

Join the Target Circle Rewards program

You’re missing out if you’re not a Target Circle Rewards member. You can clip money-saving coupons in the mobile app to get a bigger discount and earn cash back rewards whenever you shop.

Take advantage of the price match guarantee

Target has a price match guarantee that could help you keep more money in your pocket. If you find a lower price on the Target website or mobile app or from select competitors, Target will match the lower price.

Earn rewards while you shop

It’s not a bad idea to pay for your purchases with a rewards credit card. You can earn cash back and other valuable rewards using cash back credit cards. Celebrating the holidays with your favorite people is possible even if you’re working on important personal finance goals.

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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 positions in Apple. The Motley Fool has positions in and recommends Apple and Target. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.

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It’s an interesting move for the warehouse club giant. 

There are certain perks Costco is known for, like its low prices, wide selection of inventory, fantastic food court deals, and free samples. Not only are those samples fun to consume, but Costco is extremely generous in that customers can take as many as they want.

The typical Costco sample experience involves having a warehouse club employee hand over a tasty bite of food at the end of an aisle. But Costco has begun to introduce self-serve samples. And shoppers are having mixed feelings about that.

A streamlined way to give out samples

Delish reports that at least one Costco location in Washington has introduced a self-serve kiosk where customers are encouraged to help themselves to a sample. And customers are a bit split on whether that’s a good thing or not.

On the one hand, self-serve kiosks might lend to a steadier flow of foot traffic within Costco and less congestion. We’ve all had those moments of being bottlenecked in a crowded aisle as customers wait their turn for a mini quiche to come out of the toaster oven. Self-serve kiosks help solve for that, as customers can walk over to one, grab a quick sample, and be on their merry way.

But other Costco fans aren’t in love with the idea of self-serve samples. For one thing, there’s the concern that if Costco increasingly adopts them, that will lead to lost jobs.

What’s more, some people actually really like the human interaction that comes with getting a sample. And also, the Costco employees who are tasked with giving out samples often know a thing or two about the products at hand, such as what they go well with and where to actually find them inside the store.

Will self-serve samples at Costco become the norm?

Costco is reportedly rolling out self-serve kiosks to address staffing shortages at stores — not to replace humans with machines and save on payroll costs. So chances are, you’ll still be able to walk into your local Costco and get a sample from an actual person.

That said, if you’re going to indulge in Costco samples, be sure to follow some basic rules:

Only take one sample when there’s a long line behind you.Once you’ve gotten your sample, move along so as to not clog the aisle.Don’t rush to purchase an item you’ve sampled before thinking things through — that delicious spicy salsa may be tasty to you, but if no one else in your family will eat it, you may not need a giant-sized jar.If you have picky eaters at home, make sure they try a sample before buying a new product — otherwise, you might rack up a larger credit card tab for nothing.Don’t let yummy samples drive you to make impulse buys if money is tight and you’ve been raiding your savings account just to make ends meet.

Ultimately, enjoying samples is a core part of the Costco experience, and it’s good to know that that isn’t changing. But don’t be shocked if you one day walk into your local Costco only to find that you’re now required to serve up your samples yourself.

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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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Spouses may be held responsible for the debt. 

Say a relative passes away with debt. You’d want to know how responsible you are for paying off credit card debt, mortgages, etc. Chances are, it’s not your problem. But even after a person dies, the ghost of unpaid finances lives on in creditors, who want their money back.

A person’s debt doesn’t go away after death, vanishing into the financial ether like a bad dream. Rather, it lingers. Creditors typically take what they’re legally owed from the deceased’s estate.

Debtors collect debt from the estate

When a person dies, they may leave behind money or property, known as the estate. Assets flow from the estate to creditors to pay off debts. The rest goes to beneficiaries. State law determines who gets what, and an estate executor coordinates payments, inheritance, etc.

Some examples of what may be included in a person’s estate are:

PropertyBank accountsRetirement and investment accounts

All may be liquidated to pay off debts. Sometimes, more is needed to repay debts fully. In most cases, that means the debtors just don’t get paid. They lose money, and that’s that. But there are exceptions to this rule.

You can choose to take over debt

Secured debt, or debt secured by collateral (like auto and mortgage loans), may be taken over by beneficiaries. A beneficiary may want to keep the house if a family member passes away. They can gain ownership by repaying the loan fully or taking legal responsibility.

Taking over secured loans is optional. Should beneficiaries choose not to take over secured debt, debtors will take what they need from the deceased’s estate. Creditors may sell the house or the vehicle to pay off secured loans. What’s left goes to beneficiaries.

You can inherit debt

In some cases, you can inherit debt. State law may hold family members, friends, or coworkers responsible for the deceased’s debt if any of the following is true:

You jointly own an account.You cosigned a loan.You’re the deceased’s spouse and live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin) or if you live in Alaska and have signed a community property agreement.

If any is true, you may be held liable for repayment by state law. For example, if someone dies in California, the state would have the spouse responsible for repaying any remaining credit card debt. The state would not make the children of the deceased responsible, even if they were authorized users of the deceased’s credit card.

Spouses may also be held responsible for leftover medical debt, which can pile up during the end of a loved one’s life. An estate lawyer can help sort through any confusion regarding inheritance. An attorney can also help you determine how to deal with debt collectors, who are limited in how they contact and treat beneficiaries by law.

Communicate with family members

If a family member anticipates passing away, they may have organized their assets in an easy-to-access place, including account numbers and passwords. They may also hold a life insurance policy with you as a beneficiary, which you can put toward paying down debts.

Families concerned for their beneficiaries may want to dig deeper into what happens to debt when you die by doing independent research or contacting an attorney. Knowing they’ve done all they can to prepare their loved ones may bring them peace of mind.

How to pay off debt fast

Folks haunted by the specter of debt might find solace in tried-and-true debt payoff strategies.

For example, finance guru Dave Ramsey advocates for the counterintuitive debt snowball method, which has you pay off debts from smallest to largest. Another option is the debt avalanche method, which has you pay off debts with the highest interest rates first.

A good debt payoff app can help calculate how long it will take to pay off debt and give you a window into how much you owe, all in one place. The faster you pay off debts, the less you’ll owe over the loan’s lifetime.

Debt doesn’t go away after death. In some cases, you can even inherit debt. Don’t be afraid to enlist legal help where necessary — death is messy, it’s emotional, and it’s perfectly normal to request assistance with paying off or organizing finances.

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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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