Money Management

Costco is known for low prices and quality products, but those are just the beginning. Learn about valuable perks that even many long-time members don’t know about. [[{“value”:”

Shopping at Costco has many benefits. The warehouse store has high-quality products at competitive prices, so you could find deals every time you visit. The return policy is one of the most customer-friendly of any retailer. And don’t even get me started on the delicious (and absolutely enormous) muffins.

Lots of members already know about all that. But a Costco membership also gets you access to quite a few other perks that don’t receive nearly as much attention. Here are more benefits worth knowing about.

1. Vacation and travel booking

It may not be the first place you think of to book a trip, but Costco Travel gets high marks from members. You can book vacation packages, hotels, cruises, and rental cars.

People who have booked with Costco Travel report that prices are almost always competitive — often much less than what you’d pay elsewhere. If you want to save even more on a booking, make sure to pay with one of the best credit cards for Costco.

The vacation packages, in particular, are popular for honeymooners and families. Not only can you get a good deal, but these are also a convenient way to book a trip. Packages often include transportation, complimentary breakfast, and activities, so you save a lot of time on travel planning.

2. Affordable prescriptions

Since Costco buys prescription medications in bulk, it’s able to negotiate low prices. It passes those savings on to its shoppers.

While you don’t need a Costco membership to fill prescriptions at its pharmacy, members are eligible for discounts. The Costco Membership Prescription Program is available exclusively for members. It offers discounts of up to 80% or more on prescription drugs for people and pets, whether or not you have insurance.

3. Discounts on auto and home insurance

Insurance has gotten expensive lately. Car insurance premiums have gone up by an average of $682 just since last year.

If you’re looking for cheap auto insurance, your Costco membership could help out here, too. It offers auto insurance through CONNECT, powered by American Family Insurance. Costco members who switched reportedly saved an average of $595.86 on auto insurance in the first year. It also offers homeowners insurance, so you could bundle both of those and potentially get a discount.

4. Lower prices on non-Costco products with Costco Next

In 2017, Costco launched a direct-to-consumer service called Costco Next. It’s an online store managed by Costco and with Costco prices, but selling non-Costco products. The suppliers handle order fulfillment.

Many members still don’t know about Costco Next, but it’s an exciting service. You can get excellent deals with some popular brands. Here are a few examples of what you can find on Costco Next:

High-end luggage designer Briggs & Riley, known for luggage you can buy for lifeMOST Inc., which offers popular Korean beauty productsAnker, which offers power banks, power stations, and chargersProducts from wine storage company Vinotemp

5. Home improvement products and services

Summer is a popular time for home improvement projects. If you have any you’d like to check off the list, you can most likely do it with Costco. It has a network of service providers for a wide range of projects, including:

Bath remodelsFlooring and carpet installationSolar panel installationCustom closet and storage designHeating and air conditioning

To make it even better, qualifying home improvement purchases include a 10% Costco Shop Card. So if you spend $8,000, you’d get a card worth $800.

With all the ways you can save money at Costco, the yearly membership fee is a bargain. If you’re thinking about purchasing a membership, keep in mind that it’s effectively risk-free. You can cancel and get a full refund if you decide you don’t like it. But most Costco shoppers get their money’s worth from their memberships, especially the ones who take full advantage of all the benefits.

Top credit card 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. Lyle Daly 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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Are you a United Airlines customer sick of paying pricey bag fees? Investing in an annual baggage subscription could offer big savings. Find out how much you could save. [[{“value”:”

If you travel often and find it difficult to pack light, you understand the frustration of paying checked bag fees. Unfortunately, many carriers now charge a fee to check a bag. Unless you’re flying with Southwest Airlines and can take advantage of its two-free-checked-bags benefit, these additional travel costs can add up quickly throughout the year.

If you fly with United Airlines, I have some good news: The airline has a paid subscription that could save frequent fliers money on airline bag fees. Here’s what you need to know.

Stop paying bag fees every time you fly

If you fly several times a year, bag fees can quickly eat away at your bank account balance. But you can avoid paying these fees every time you fly. Instead of paying a fee for every one-way flight, you can invest in an annual baggage subscription.

United offers this, and prices start at $349 per year for one traveler. The total subscription cost varies depending on your party size, number of checked bags, and travel region.

Here’s an overview of the yearly fee for a subscription that allows one checked bag per trip:

Here’s an overview of the yearly fee for a subscription that allows two checked bags per trip:

If you fly regularly, a baggage subscription could be well worth the added expense and could provide significant savings. But since this subscription is exclusive to United, it’s best for someone who typically flies with the carrier. If you fly with various airlines, this isn’t for you.

For frequent fliers, the savings can add up

You may be wondering if this is a good option to consider and what your total yearly savings might look like. It depends on the subscription you choose and how often you fly. If you usually fly within the continental United States and only need to check one bag on each trip, the $349 subscription would work nicely for you.

Let’s imagine you take 10 round-trip flights a year. United checked bag fees vary, but you’ll pay $40 for a checked bag as a non-elite flier. That’s $80 per round-trip flight. If you prepay these fees before check-in, you’ll pay $35 each way or $70 total. That’s $700 a year in bag fees. The $349 annual baggage subscription saves you $351 on these fees.

Consider all travel costs

Before booking your next trip, consider all travel costs beyond the initial airline ticket. You may need to budget more money for extra costs like baggage fees. But if you’re strategic, you can find ways to save money on travel expenses like this — or even avoid them altogether.

You can get a United Airlines credit card with free checked baggage perks if you’re a United Airlines loyalist. Earning rewards and using your credit card benefits could save you money. Review our list of the best United credit cards to learn more about the top features of each card.

But if you’re looking for a credit card with different travel perks, consider applying for one of the best travel rewards credit cards instead. These cards don’t provide free checked bag perks but have other valuable travel perks that could save you money on travel expenses.

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

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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 recommends Southwest Airlines. The Motley Fool has a disclosure policy.

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Overdrawing a checking account is bad news. Read on to see what happened when I made that mistake. [[{“value”:”

Years back, I opened a checking and savings account at a local bank because I wanted the benefits of having a physical branch nearby. But there came a point when I stopped using that checking account because I didn’t find it convenient. I preferred to use a different online checking account that was linked to a savings account with a much higher APY than what my physical bank offered.

I never actually went out and closed my checking account at my local brick-and-mortar bank. Instead, I made a point to maintain the required $100 minimum balance just to have it. I also kept a few thousand dollars in that bank’s savings account so I’d have the option to withdraw cash in an emergency.

But right before I started phasing out that checking account, I wrote a check to a contractor that exceeded $100. That contractor then sat on the check for months before cashing it.

As such, I wound up having an overdrawn checking account. But thankfully, I was able to escape that situation without negative financial consequences.

When a linked savings account and a visit to your bank bail you out

When I saw a fee in my checking account for overdrawing it, I was confused at first. I decided to stop by my bank to talk to someone in person about what had happened.

When I realized that a months-old cashed check was the cause of my account getting overdrawn, I was mad at the contractor for sitting on that check for such a long time. But then I got mad at myself for forgetting about it and winding up in a pickle.

However, going into my bank to talk things out was the right move. I explained what had happened, and because it was a one-time fumble, the bank agreed to waive the fee. Also, I had more than enough money in my savings account at that bank to cover the check, so I was able to transfer funds over on the spot and take care of everything.

Keep tabs on the checks you write

It’s pretty rare for me to write checks these days. Most of the time, I send checks electronically from my online checking account, so the money is debited from my account immediately.

In this situation, I had expected to pay my contractor with a credit card, only they offered me a discount for paying by check that I wanted to snag. I think because I wasn’t expecting to write a check, I simply forgot about it and never noticed that the funds hadn’t come out of my account.

Because I’ve now stopped using that old checking account entirely, this sort of thing isn’t likely to happen to me again. But if you still write physical checks, make a point to maintain a record of them. That way, you won’t risk running into a situation like this.

Also, if you do wind up in a situation where you’re facing a fee for a one-off banking mistake, call your bank to talk things through. Or, if you use a brick-and-mortar bank, it may be worth a conversation in person at a branch. In my case, all it took was a polite conversation and a smile to get my bank to be completely accommodating.

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

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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Inflation has wreaked havoc on consumers in recent years. Read on to see how a Costco membership can protect you from it. [[{“value”:”

Inflation isn’t the sort of thing many of us think about regularly — or at least it wasn’t until a few years ago. But in 2021, inflation started to pick up, partly as a result of the government’s generous stimulus policies. That year, Americans found themselves flush with cash thanks to stimulus checks and a boosted Child Tax Credit. And what did they do with that money? In many cases, they spent it.

That was actually what lawmakers wanted to happen. The economy needed a boost following the beating it took in 2020 due to the COVID-19 pandemic. But because consumer demand rose so much in 2021, the cost of goods and services increased exponentially, leading to sky-high inflation throughout 2022.

Thankfully, things have calmed down a bit since. In May, inflation was only up 3.3% as per that month’s Consumer Price Index, which measures changes in the cost of consumer goods and services. But inflation is by no means a limited-time problem. It’s a perpetual part of the economy, and it won’t be going away — ever. So it’s important to do what you can to inflation-proof your budget as much as possible. And one tactic that might work is holding onto a Costco membership. Here’s why.

1. You can expect to pay $1.50 for a hot dog and soda for the foreseeable future

Costco introduced its $1.50 hot dog and soda combo almost 40 years ago. But you’ve probably noticed that the price has held steady since then. Costco could’ve easily raised the price of that food court meal many times over through the years. Instead, it intentionally kept the price steady to benefit customers and draw them in to shop. And chances are, it will continue to do so for the foreseeable future.

On Costco’s most recent earnings call, CFO Gary Millerchip was quoted as saying, “I also want to confirm the $1.50 hot dog price is safe.” So you may be able to enjoy that deal for many more years to come.

2. You can expect membership fees to hold steady for years

The last time Costco raised the cost of its membership fees was June 2017. So it’s officially been more than seven years since members had to pay more than $60 for a basic membership or $120 for an Executive membership to shop at the store.

Costco’s normal schedule for increasing membership fees is every 5.5 years or so. So at some point, a fee hike is likely to happen. But chances are, many of your bills increase on a yearly basis. So the fact that you’ll generally get a five-plus-year reprieve from paying more for Costco is something you can take comfort in if you’re worried about inflation.

3. You can save enough with Costco’s low prices to offset increases elsewhere

Inflation commonly drives many expenses upward, from groceries to gas to housing. But because Costco offers such low prices on the items it sells, you may be able to save enough money on your shopping that you’re able to more easily cover other bills that increase.

For example, let’s say that after deducting your membership fees, you save $300 a year by shopping at Costco. If your rent goes up $50 a month in a given year, you’ve just managed to cover half of that increase.

Inflation is something consumers just have to deal with. Much of the time, it isn’t that noticeable. But it’s a good thing to have strategies to fight it. And joining Costco may be a surprising one you can rely on.

Top credit card 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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