Money Management

Want to know which Costco deals to avoid? This author loves Costco, but he has learned from painful experiences not to buy these five items. [[{“value”:”

I’m a bit of a Costco superfan. This is pretty much my dream job because I get to write about Costco for a living. However, there are a few items at Costco that even I won’t buy. Not everything on the Costco shelves (or in the Costco freezer section) is the right choice for my family’s budget.

It’s not that Costco products aren’t a good deal. It’s not that the food isn’t delicious. It’s more a matter of practicality and logistics. Even if you’re happy to pull out a credit card and buy all of these five Costco items, you might find that the experience isn’t so pleasant after you get home from the Costco warehouse.

Here are five items I never buy at Costco — and why you might want to avoid these Costco deals on your next shopping trip.

1. Perishable bulk groceries

Costco is famous for its big quantities of groceries. And it’s true that if you look at the average price per ounce or per item, most Costco grocery deals are exceptionally cheap. But here’s the problem: My family can’t always eat the entire package of whatever cheap, huge thing we bought from Costco.

We’ve had particularly bad luck with bagged salads, yogurt, and other perishable bulk items that quickly go bad in your fridge if they’re past the expiration date. Unless you have the discipline to eat all 16 containers of low-cost Greek yogurt before they expire, Costco’s low prices might turn out to be a false economy.

2. Protein bars

Costco offers several varieties of protein bars, nut bars, granola bars, and other sweet-and-salty snack bars in bulk quantities. I’m not a big breakfast eater, so I will often start my day by eating a protein bar instead of an entire meal.

Here’s the problem with buying these at Costco: The quantities are so big, that even if it’s your favorite brand and flavor of protein bar, sometimes it gets monotonous and you end up struggling to finish the whole box. For example, the Kirkland Signature Soft & Chewy Granola Bars come in a 64-count box.

That’s an awful lot of bars, even if you love to eat one every day. It’s a struggle to keep eating the same granola bar every morning for weeks at a time. Getting bored with your food is no fun, no matter how cheap it was at the store.

3. Unsalted mixed nuts

Costco sells a big bag (2.5 pounds) of Kirkland Signature Extra Fancy Salted Mixed Nuts that is one of the most delicious and reliable snacks I’ve ever tasted. I keep a big bag of this stuff open and within reach of me at all times; I never get tired of eating this nut mix.

It’s perfectly salted and almost buttery in its goodness, and it feels like I’m eating real, plant-based food instead of greasy potato chips or an over-sweetened, highly processed granola bar.

But here’s the problem: One time, we accidentally bought the unsalted blend of mixed nuts. This was a terrible mistake. The unsalted nuts were nowhere near as good as the salted kind. Unless you’re on some special low-sodium diet and you can only eat the unsalted nuts, I highly recommend not buying those. Get the Costco Salted Mixed Nuts instead.

4. Cake

The Costco bakery sells delicious cookies, croissants, and other baked goods. One of my favorite Costco bakery items is something that I don’t get to have very often anymore: cake. Costco sells delicious, gooey, rich, multi-layered cakes (chocolate and white cake) with mousse and ganache and other beautiful things.

Unfortunately, the Costco cake sizes are just too big to be practical. My family can’t eat an entire Costco cake. I rarely host dinner parties big enough to polish off an entire Costco cake. One year, we bought a Costco cake for my birthday, and it took up too much room in the fridge and some of our other food had to be thrown away.

5. Frozen foods

The same problem I have with Costco cake can also be found in the Costco freezer section. Costco sells delicious-looking frozen meals, frozen pizzas, and other prepared foods. But the quantities are huge. Unless you have a large chest freezer, it can be hard to make enough room in your home for the enticing items you see at the Costco warehouse freezer section.

Sometimes Costco food is just too big. It’s tragic. I want to eat all the delicious Costco foods, but I also hate wasting food, having food go past its expiration date, having the freezer get clogged up with too many packaged meals, and getting freezer burn.

Bottom line

Costco can be a great place to shop for big-ticket items, housewares, appliances, and everyday items. You can also use Costco to shop for groceries — but beware. Sometimes buying groceries in bulk quantities can lead to extra hassles and logistical challenges, like fitting an entire Costco chocolate cake into a crowded fridge, or suddenly having to eat an entire big package of yogurt before it expires.

To maximize the rewards of your Costco membership and avoid wasting food, make a plan and stay disciplined about how you consume your Costco purchases — especially the perishable, dairy-based items.

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Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

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

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Think it’s a bad idea to put every purchase on your credit card? Find out why this could actually be one of the best financial moves to make. [[{“value”:”

Credit cards are controversial. You might’ve heard at least a few horror stories about them from people who have ended up in debt. Even some financial gurus are completely against credit cards. Based on that, the idea of using them for all your purchases could seem like a huge risk.

If you spend more than you can afford, that’s true. But if you stick to your normal spending habits, paying for everything with credit cards has some great benefits. I’ve been doing this for years, for a few reasons.

1. I earn travel rewards on all my spending

The main reason I love paying by credit card is because it allows me to earn rewards on my purchases. Personally, I’m a huge fan of travel rewards cards. Every time I use my cards, I earn travel points. I use these points later to cover my largest travel expenses, which is typically business-class airfare or stays at highly rated hotels.

If you don’t travel that much, or you’d just rather have rewards you can use at any time, there are also plenty of cash back credit cards. Earning cash back is one of the easiest ways to save more money. You can apply your cash back as a statement credit toward your credit card balance, or you can deposit it to your bank account balance.

For an idea of how valuable credit card rewards can be, let’s say you spend about $4,000 per month on your credit cards. You use a card that earns 2% back on purchases. You’d earn $960 every year in credit card rewards. That’s value you wouldn’t get if you paid in cash or by debit card. There are some options for rewards checking accounts, but they don’t earn nearly as much as rewards credit cards.

2. I get purchase and fraud protections

When I make a purchase, I want to feel as if I’m covered if anything goes wrong. For example, your online order isn’t delivered, and the seller is unresponsive. Your laptop gets accidentally damaged a few days after buying it, or it breaks down right after the warranty expires.

Paying by credit card could protect you in all of those situations, and many more. With just about any credit card, you can dispute transactions if there’s an issue you can’t resolve with the merchant. If your order isn’t delivered or it’s defective, you could file a dispute with your card issuer and potentially get your money back.

Many credit cards also have complimentary protections that apply to eligible purchases. These may include:

Purchase protection for new purchases that are damaged or stolenExtended warranty protectionTravel insurance, such as rental car insurance and lost luggage insurance

Credit cards also keep you safe from fraud. Card issuers typically have zero-liability policies for fraud. If a transaction is fraudulent, you can dispute it and have it taken off your credit card bill.

3. It’s more convenient

I’m not the type of person who likes to keep a lot of cash in a checking account. I’d rather have as much of my money as possible invested or in a high-yield savings account. If I paid for purchases with my debit card, I’d need to keep track of my checking account balance to make sure I didn’t overdraft it.

With credit cards, I don’t have that problem. The cards I use most often have credit limits much higher than what I spend in a month. I just use them for whatever I need, without worrying about my balance in relation to my credit limit. I also pay my credit card bills in full every month, bringing the balances back down to $0.

What to know about using credit cards

Paying for everything by credit card has its benefits and risks. Using credit cards only works in your favor if you stick to your normal spending habits and pay off your full balance every month. You’ll stay out of debt and avoid interest charges this way.

If you do that, you’ll come out ahead with credit cards. You’ll be able to earn cash rewards or travel points on your spending. You’ll be protected in the event of fraud, and your card may also have useful purchase protections, too. Last but not least, you won’t need to monitor your checking account balance, like you do when paying with a debit card.

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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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Thinking of upgrading your living room furniture soon? Here’s why some Costco members buy their furniture from the warehouse club. [[{“value”:”

Are you in the market for some living room upgrades? Investing in new furniture is one way to spruce up your hangout space. You can make your living area more comfortable and change the entire feel of your home by purchasing a new couch.

If you’re a Costco member, consider buying your new couch there. The warehouse club sells quality furniture at reasonable prices. You can improve your home and keep more money in your checking account. Here’s why you may want to buy your next couch from Costco.

1. Costco’s return policy is generous

One of the top reasons Costco members love purchasing furniture from their local club and at Costco.com is because of the retailer’s generous return policy. If you’re unhappy with your purchase, you can return it for a full refund. This policy can give you confidence when buying more costly items like furniture.

2. The furniture quality is good

Like other retailers, product quality can vary somewhat at Costco. But generally, you can expect a good quality piece of furniture when buying a couch here. Many shoppers online rave about the quality and durability of Costco’s sofas, chairs, and other furniture purchases.

As you compare options at Costco.com, you can read reviews from other members to better decide on the right sofa for your home. But again, the return policy can give you confidence.

3. You can save more money when you buy multiple furniture items

For some purchases, Costco offers bigger discounts through its Costco Direct program. Some items, like eligible furniture and appliances, can be ordered through Costco Direct, which ships items directly from Costco’s warehouse to your home.

When you order two or more eligible furniture items, you can save $100 or more on your total purchase price. Items that qualify are marked with a “Costco Direct” label. This additional discount provides an easy way to maximize your savings if you’re planning to redo your whole living room, den, or other part of your home.

Is a Costco membership worth it?

If you’re not yet a Costco member, you may wonder whether investing in a membership is a good idea. Thanks to their memberships, many shoppers save money on everyday essentials like groceries, toiletries, cleaning supplies, and other household goods.

If you have a club nearby and plan to use the membership perks provided, consider joining. You’ll pay either $60 or $120 per year through August.

However, as of Sept. 1, 2024, annual membership prices will rise by $5 to $10, so if you join after that point, you’ll pay $65 or $130.

Let’s take a closer look at the membership types and what you can expect:

Gold Star: This is Costco’s standard membership. It gives you access to the deals and allows you to shop in-club or at Costco.com.

Executive: This is Costco’s premium membership. You’ll get the same benefits that come with a Gold Star membership, plus access to more perks. Some of the extra perks include additional discounts when ordering printed checks and additional benefits when booking select travel packages through Costco Travel.

Plus, you can earn 2% rewards on eligible Costco purchases for a total of $1,000 in rewards annually (or a maximum of up to $1,250 starting in September.)

Before joining, consider your budget and shopping habits. You can browse products and services at Costco.com or the mobile app to get a feel for what’s available.

An easy way to earn rewards when you shop

If you love getting a great deal, you may like earning rewards when you shop. One of our favorite ways to save money at Costco is using a rewards credit card to pay for purchases. You can earn cash back, which allows you to maximize your savings.

Review our list of the best credit cards for Costco to find out more about the top credit cards.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

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. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool has a disclosure policy.

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You don’t need to have a lot of money to make opening a bank account worth it. Here are some of the key benefits bank accounts offer. [[{“value”:”

Roughly 5.9 million households in the U.S. are unbanked, according to the Federal Deposit Insurance Corporation (FDIC). That means no one living in the household has a checking account or savings account at a bank or credit union.

Lower-income households were more likely to be unbanked, and this could be because they feel they don’t have enough money to warrant opening a bank account.

But there are clear advantages to owning a bank account no matter how much money you have. Here’s a closer look at how banks can help you keep your money safe and even grow your wealth over time.

You could earn interest on your savings

Savings accounts generally pay you monthly interest on your funds. Rates vary significantly, depending on the bank you choose. Many brick-and-mortar banks only offer 0.01% APY, which would give you $1 per year for every $10,000 in the account. On the other hand, high-yield savings accounts offer close to 5.00% APY right now — enough to earn you $500 on $10,000 in one year.

Checking accounts are less likely to earn interest, though there are some accounts that do. These rates are generally lower than savings account interest rates. Many pay less than 1% APY. But they could still help you earn a little bit on your checking account funds each month.

You gain valuable financial protections

A good bank account will have FDIC insurance. This protects your money up to $250,000 per person, per ownership category, per bank against bank failure. Basically, if the bank goes under and it cannot afford to pay all of its customers what they had stored there, the FDIC steps in to ensure you get your money back.

Many bank accounts also have fraud protection features, like alerts that notify you of suspicious transactions. You may also be able to get reimbursed for fraudulent debit card purchases. You won’t have that kind of protection if you keep your cash at home and someone steals it.

You could get a cash bonus

Some bank accounts offer cash bonuses to new customers who open an account within a certain time period and complete a number of qualifying activities.

Usually this involves using a promo code to open the account, setting up direct deposit, and receiving a certain amount of direct deposited funds into the account within the first few months of account opening. Some also require a number of debit card transactions per month.

These bonuses vary in difficulty and in cash payout. But even the lowest bonuses tend to pay out about $100. If you think you can meet the criteria to claim the bonus, this could be a smart move for you.

Which account should you choose?

The first thing you’ll have to decide is whether you want a checking account or a savings account. Savings accounts offer higher interest rates, but they often give you fewer options for accessing your cash. A checking account is the better way to go if you want to get your money quickly.

Regardless of the account type you choose, online banks are likely your best option. Most don’t have minimum balance requirements and they don’t charge monthly maintenance fees, either.

Research a few accounts and compare their costs and features side by side before deciding which to open. If you have any questions, contact the bank for clarification.

You can always change your mind later if you don’t like the account you chose. But this can be a hassle, so it’s best to take your time selecting the right account.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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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