Money Management

Are you making the most of your Costco membership? Read on to find out. [[{“value”:”

A basic Costco membership costs $60 a year, while an Executive membership that puts cash back in your wallet costs $120. But starting Sept. 1, these prices are rising. A basic membership will cost you $65 per year, while an Executive membership will cost $130.

Since you’re spending a good amount of money to join Costco, it’s important to get the most out of your membership. But you may not realize just how many member benefits are available to you. Here are a few that are often overlooked.

1. Access to discounted gift cards

Though some people will tell you that it’s perfectly acceptable to stuff cash in an envelope when you need a gift for a coworker or child’s teacher, gift cards tend to be a notch classier. But did you know that when you buy gift cards at Costco, you don’t have to pay full price?

Costco carries a range of gift cards, from restaurants to services like Uber. And you can save serious money by purchasing your gift cards below face value.

Here are some of the great gift card deals Costco has available right now:

A $100 Instacart gift card for $79.99Two $50 Spafinder gift cards for $79.99Five $15 Subway gift cards for $59.99

It pays to scope out the gift card aisle at your local Costco store. Or, look online for great deals. You may find a wider selection on Costco.com.

2. A complete take-out meal for under $10

You’ll often hear that ordering takeout is way more expensive than buying groceries and cooking a meal at home. And generally, that’s true. But Costco’s food court pizza may be an exception to that rule.

Many people are familiar with ordering pizza by the slice at Costco’s food courts. But did you know that you can buy a whole pizza for $9.99? And did you know that you can order that pizza in advance so it’s warm and gooey and ready for you by the time you’re done with your Costco shopping?

It’s true. You can call in an order or place one at the food court in person before you make your way through the store.

3. Hassle-free tire maintenance

Have you ever shelled out good money for new tires only to run over something and end up with a flat just weeks later? It’s an incredibly frustrating experience, to say the least.

The good news, though, is that if you buy your tires at Costco, a situation like that shouldn’t cost you any money. All Costco tire purchases come with a five-year road hazard warranty.

Plus, when you buy Costco tires, services like rotations and pressure checks are included in your purchase price. That makes it easy to maintain your tires and get maximum value out of them.

4. Easy, flexible returns

Many retailers give you 30 days to return items you’ve purchased but no longer need. Some even give you 90 days. At Costco, you largely have an unlimited window of time to return items that aren’t useful to you, whether it’s apparel, home decor, or kitchen supplies.

Now, there are exceptions, such as electronics, which only have a 90-day return window. But you should never hesitate to take items back to Costco even if it’s well beyond when you bought them, assuming they’re in returnable condition.

It’s not so cool to take back a pair of frayed, faded jeans you bought eight months ago that you’ve been wearing almost daily on the basis of those pants not meeting your needs or expectations.

Costco might take them back, but that’s generally an abuse of its return policy. And too many strikes could get your membership revoked. But if you bought jeans eight months ago that were never worn and still have their tags, don’t hesitate to get your money back.

These are only four of many lesser-known benefits of a Costco membership. It pays to explore the store and website to see what other products and services you may not have known about. That way, you can get the maximum value out of your membership.

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

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

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. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, JPMorgan Chase, and Uber Technologies. The Motley Fool has a disclosure policy.

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Don’t want to pay for Costco access? Read on to see how you can technically get Costco to cover your membership cost. [[{“value”:”

Millions of people have joined Costco for the everyday savings on groceries, household essentials, and other purposes. But there’s a financial obstacle you may feel compelled to overcome on the road of saving money at Costco — recouping your membership fee.

Beginning Sept. 1, a basic membership at Costco will cost $65 per year, while an Executive membership will cost $130 per year. The Executive membership costs double because it gives you 2% cash back on your Costco purchases.

You may not be thrilled about the idea of having to spend money to access Costco. After all, most stores let you just walk in and shop.

But the good news is that you may not actually have to pay for a membership. If you play your cards right, you can get Costco to reimburse your fee completely.

Take advantage of Executive member cash back

Although there are some exceptions, the majority of the Costco purchases you make are eligible for cash back with an Executive membership. If you spend enough money at Costco during the year, you can earn enough cash back to make up for its $130 annual cost.

It takes $6,500 in annual Costco spending to recoup your $130 Executive membership fee. Any spending beyond that simply puts extra cash back in your pocket.

Now at first, that might seem like a large amount of spending. But if you shop at Costco regularly, it’s actually not all that much — especially given the general higher cost of groceries and household products today.

Imagine you shop at Costco 50 weeks a year and spend $130 on average per visit. That alone gets you to $6,500. And that doesn’t include larger Costco purchases you might make.

Throughout the year, you might replace some apparel at Costco, or upgrade a TV or appliance. You might buy a piece of furniture or book a vacation.

All of these purchases are eligible to earn cash back with an Executive membership. You may find it’s easier than expected to make your membership fee back — even if you’re paying for the more expensive one upfront.

It’s worth joining Costco even if you don’t get your entire membership fee back

You might feel good about getting to recoup your entire Costco membership fee. But even if you don’t, that doesn’t mean it’s not worth paying.

Let’s say you sign up for an Executive membership at Costco for $130 and only recoup $110 of that with cash back accrued during the year. Don’t assume you’re out $20. Your $130 fee may have saved you $800 on the products you bought over 12 months. So even if you subtract $20 from $800, you’re up $780.

Remember, Costco’s membership fees are what allow it to offer its fantastic prices. Put another way, if Costco were to let customers in without a membership, the bulk cheddar cheese you buy every other week might cost you $14 instead of $11. The muffins your family loves might cost you $15 for a 12-pack instead of $10.

So even if you decide to get a basic membership for $65 that earns you zero cash back, you might still come out ahead financially.

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

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

Click here to read our expert recommendations for free!

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. Maurie Backman 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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About half of Americans carry a credit card balance from month to month. Read on to learn how much the average balance is and ways to pay it off. [[{“value”:”

Sometimes, necessary expenses just aren’t in the budget. And when that happens, it’s often easiest to turn to credit cards to fill the gap. Over time, high APRs and increasing needs can build, leading to significant credit card debt.

If you find yourself in that situation, know that you aren’t alone: Just under half (47%) of Americans carry a balance from month to month.

Here’s how much credit card debt the average American has

The average American had $6,501 in credit card debt in Q3 of 2023, based on The Motley Fool Ascent’s analysis of data from sources like Experian, the Federal Reserve, TransUnion, and the U.S. Census Bureau.

At the same time, the average credit card APR in 2023 was a whopping 22.8%. That’s the highest these rates have been since the Federal Reserve started collecting this data back in 1994. (Since then, rates have decreased slightly, falling to 21.51% in May of 2024. But that’s still miles above the 16.26% rates seen as recently as 2022.)

So those who have the average debt at the average rate ended up paying over $13,000 in interest alone over the course of 152 months, assuming they made a 2% minimum monthly payment and didn’t add to their balance.

What to do if you have more credit card debt than the average American

If you find yourself above the average credit card debt figure, there are options to help get out of that debt. But it will take time and dedication. Here are some options you might consider.

0% APR balance transfer card

If you can qualify, a balance transfer card with a 0% APR introductory period can be a major money-saver. You would pay a balance transfer fee that’s typically 3% to 5% of the balance, but that’s often much lower than you’d pay by tackling that debt on a typical credit card APR. The key is to pay it off before the introductory period ends, since any leftover balance would be subject to the card’s go-to rate.

Personal loan

Another way to access a lower APR is a personal loan, which can have significantly lower rates than a credit card if you have good credit. Many personal loans are fee free, too, which minimizes the amount you’d have to pay to get out of credit card debt.

Debt avalanche method

If you have multiple cards, there are many ways that you can choose to attack your credit card debt — but the avalanche method can help you save the most on interest. Here, you’d order your debt by highest APR to lowest, and then put your efforts into paying off the highest rate card first, while paying the minimum amount on the other cards. Then you’d move on to the next card on your list, and so on.

Credit card debt is difficult to get out of, and it’s something many people deal with every day. But that doesn’t mean you can’t get out of credit card debt. As long as you stay consistent with payments and take advantage of the financial tools available to you, you’ll be on your way to a better financial future.

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

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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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