Money Management

There are certain essential services and products that Medicare won’t pay for. Read on to see how a Costco membership might make those less expensive. [[{“value”:”

A good 67 million people are enrolled in Medicare today. And without it, many older Americans would no doubt struggle to find affordable health coverage in retirement.

But Medicare isn’t perfect — far from it. Not only are there numerous out-of-pocket costs involved, like copays and deductibles, but there are a number of essential services that Medicare doesn’t cover.

That’s why it could pay to get a Costco membership as a Medicare enrollee. Here are three things you can buy for less at Costco that Medicare itself won’t pay for.

1. Eye exams and eyeglasses

Many seniors need glasses for distance, reading, or both. Unfortunately, Medicare won’t cover the cost of vision services, like eye exams and eyeglasses. So if you’re trying to save money on those things, it could pay to turn to Costco.

Costco’s optical department employs licensed optometrists who can check your vision and recommend changes to your current prescription, if needed. You can also buy affordable eyeglasses and, if desired, contact lenses through Costco’s optical center. Getting an eye exam at Costco could save you $120 compared to going elsewhere if you don’t have vision insurance, or if you’re a Medicare enrollee without vision coverage.

2. Hearing aids

It’s not uncommon for seniors to need a hearing boost to be able to function. But just as Medicare won’t pay for eyeglasses, it also won’t cover the cost of hearing aids.

Costco’s hearing aid centers, thankfully, offer affordable screenings and a wide range of hearing aid options. Prescription Costco hearing aid prices commonly range from $1,499 to $1,599 per pair, which the National Council on Aging says falls on the lower end of the spectrum for many hearing aid brands. Plus, when you buy hearing aids through Costco, you’re eligible for free adjustments as needed from the comfort of your own home, since many of today’s hearing aids are designed so that they can be adjusted remotely.

3. Vitamins and supplements

While a Medicare Part D plan or Medicare Advantage plan will commonly cover the cost of prescription drugs to some degree, Medicare plans usually will not pick up the tab for over-the-counter vitamins and supplements. But it’s pretty common for doctors to recommend these pills for seniors to help maintain joint and bone health.

Thankfully, Costco sells a host of vitamins and supplements in bulk, allowing you to pay a lower price per pill than you might pay at another store. For example, you can buy 500 calcium tablets on Costco.com for a cost of $0.03 per tablet (and Costco’s in-store prices are usually even cheaper than its online prices). On Amazon, you’re looking at $0.08 per pill. When you’re on a fixed income, this kind of savings can really add up.

Shopping at Costco offers a world of savings for members of all ages. It pays to explore the benefits you might reap at Costco as a Medicare enrollee, especially if you’re struggling to cover the cost of the services and products you need that Medicare doesn’t pay for.

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.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. The Motley Fool has a disclosure policy.

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Aldi is a unique grocery store. Read on to see how I do my shopping there. [[{“value”:”

As a mom of three children, groceries are a pretty big expense in my budget. And at a time when grocery prices are still up 1.1% from a year ago, I try to do what I can to save money on food. You probably do the same, whether by seeking out supermarket sales or loading up on bulk purchases for items you use often. But another tactic for saving money on groceries may be to shop at Aldi.

Aldi is known for its competitive prices. And I’ve found that buying produce at Aldi is generally cheaper than buying it anywhere else — including Costco. But Aldi also isn’t your average grocery store. And there are certain nuances you need to adjust to if you’re going to shop there regularly. With that in mind, here are a few ground rules I stick to when I do my Aldi shopping.

1. Always have a backup plan

Food shopping was something I used to do on a whim without advanced planning, and that used to cost me a lot of money. I’ve now gotten into the habit of planning out meals rather than randomly grabbing items off of the supermarket shelves in the hopes that everything will magically come together and result in dinner.

But because Aldi’s inventory tends to be both limited and inconsistent, I can’t assume I’ll be able to complete my shopping list with an Aldi run. So I always go in with a backup plan. If my first meal doesn’t work out due to a missing ingredient or two, I simply move down the list and go to my next meal. I suggest doing the same so you don’t end up with a collection of ingredients that don’t work with one another.

2. Always check the dates

I’ve gotten my fair share of fresh products at Aldi. But Aldi doesn’t get a fresh shipment of every single product every week like other supermarkets do. So when I’m buying an item I know I’ve seen in the store for weeks on end, I make a point to check the expiration date.

This is a good practice for grocery shopping in general. But it’s an important one in the context of a store where inventory isn’t always refreshed regularly.

3. Never buy products specifically for the kids

The reason Aldi is able to offer such competitive prices is that it stocks lesser-known brands that aren’t heavily marketed. Usually, this isn’t a problem for me. I don’t care if I’m buying no-name pasta — it’s going to take on the taste of whatever sauce I pour over it. But Aldi’s off-brands become more of an issue in the context of items I’m buying for my kids.

My children are pretty picky eaters to begin with. So if I bring home bread that tastes even a teeny bit different than the bread I usually buy, it’s going to be a problem. The same holds true for things like snacks and dairy products.

So as a general rule, I really only buy things like fruits and vegetables for my kids at Aldi. For all non-produce items, I only buy things with myself and my husband in mind. It’s a good way to avoid throwing out money.

If you’ve never shopped at Aldi before, it pays to give it a try. But do be mindful of these tips so that your first Aldi experience ends up being a positive one.

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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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Interested in owning an RV? Make sure you’ve thought things through first. Take a look at what to consider. [[{“value”:”

Road trips are a common thing in my family, as we tend to prefer the convenience of being able to jump in the car without being tethered to a specific schedule based on previously booked flights. Also, the cost of hitting the road tends to be considerably cheaper than booking airfare.

When you’re taking a road trip, you obviously need to find a place to stay. And in that regard, our options have ranged from putting up tents at campsites to booking hotel rooms or vacation rentals.

But recently, my husband and I started talking about investing in an RV. Given the number of road trips we tend to take, the idea of being able to sleep in our vehicle sounds like a huge source of convenience.

But before we make that purchase official, we have a lot of saving up to do, and a lot of research — not just in terms of which specific RV to get but also whether an RV makes sense for us in the first place. If you’re contemplating an RV purchase, here are some key questions to tackle.

1. How much will it cost to insure it?

The average Class A RV insurance policy costs between $1,000 and $1,300 per year based on 140 days of usage, according to data from the National Automobile Dealers Association. A Class B or C RV might cost you less to insure.

Now, because I’ve had auto insurance for years, I know there are numerous factors that will go into calculating the cost of RV insurance, and it’s important not to get hung up on a single number or average. These factors include:

How often you use your RVYour locationYour driving historyYour RV’s cost — and there’s a really big range in that regard

Also, if you’re planning to live out of your RV, you may need to purchase additional coverage that’s comparable to homeowners insurance.

Shopping around for insurance is important if you’re serious about buying an RV. While we’re not there yet, it’s something we intend to do once we’re closer to having saved enough money to make an RV purchase possible.

2. Where will I put it?

In my neighborhood, you’re allowed to park an RV in your driveway. But in many cities, you can’t park an RV on the street overnight.

It pays to read up on the rules in your area before buying an RV. You don’t want to get caught off-guard if it turns out you’ll be paying extra to find your RV an overnight home.

It also pays to see what it costs to park an RV overnight at various destinations. For example, at some national parks, an overnight stay at an RV campground could cost you upward of $100. So it may not be a low-cost way to vacation by any means.

3. Will I actually be comfortable driving it?

When I went from driving a smaller vehicle to a minivan, it took some time to adjust to maneuvering and parking a larger car. And to this day, I am not allowed to park my minivan in my garage because the last time I did, I didn’t clear the side, smashed my mirror, and wound up with a very expensive repair.

Now imagine going from a regular car to an RV. While I can see myself being reasonably comfortable driving one, the idea of parking one in a crowded area is downright terrifying. So think about how you feel about driving and parking an oversized vehicle before making that purchase, keeping in mind that you won’t always be privy to wide-open spaces.

I’m still not sure whether an RV purchase makes sense for my family and whether I want to spend a chunk of my savings account balance on one. Clearly, it’s a big decision either way, so I intend to really take the time to think it through. Do the same so you can approach that purchase with more confidence — or make the right call by passing on an RV if the costs and logistics don’t actually work out.

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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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has positions in Citigroup. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Costco offers deals on everything from travel to gas. Discover why the $120 fee for an Executive membership is worth it. [[{“value”:”

When it comes to shopping at Costco, it’s like stepping into a treasure trove of epic deals and unexpected delights. You know the drill — a quick trip for milk somehow turns into a full-on adventure featuring a 12-pack of LED bulbs, a tub of guacamole the size of your head, and maybe even a kayak.

But here’s the kicker: some Costco membership benefits can save you at least $100. Considering the Executive membership annual fee is $120, you could easily make up the annual fee if not more. Ready to dive into the savings? Let’s go!

1. Annual 2% reward

One of the biggest perks of an Executive membership is the annual 2% reward on eligible Costco and Costco Travel purchases. You can earn up to $1,000 back each year. It’s like getting paid to shop! If you’re a regular at Costco, those little percentages add up quickly.

Whether you’re stocking up on groceries, upgrading your electronics, or booking a dream vacation through Costco Travel, the rewards check at the end of the year feels like a well-deserved bonus. Plus, it could cover the cost of your membership (if you spend $6,000 a year at Costco), making every shopping trip more rewarding.

2. Prescriptions

Healthcare costs can be a significant burden, but Costco helps lighten the load. Our calculations show that buying five commonly prescribed drugs and three popular over-the-counter medications at Costco can save you about $739 per year. That’s a huge savings that directly impacts your wallet and your well-being. And if you take advantage of bulk quantities or Costco’s private-label Kirkland brand over-the-counter medications, those savings can increase even more. It’s a win-win for your health and budget, proving that smart shopping at Costco is good for both. You don’t need an Executive membership to enjoy these savings since they apply to the Gold Star ($60 per year) membership too, but Executive members may earn 2% back on their prescriptions.

3. Costco Travel

Costco Travel is a hidden gem that many members swear by. One member snagged a five-night stay in Hawaii, complete with hotel and car rental, for just $2,000. If you booked the same hotel separately, it would cost $2,300 for the same dates. That’s $300 in savings right there!

And it’s not just Hawaii — many members rave about the value and service of Costco Travel for cruises, international trips, and more. Whether you’re planning a romantic getaway or a family vacation, Costco Travel can help you get more bang for your buck, turning dream vacations into affordable realities. Executive members also earn 2% on travel spending.

4. Extended warranty

When you buy products at Costco, the savings don’t stop at the checkout. Costco extends the manufacturer’s warranty for up to two additional years on items like computers, televisions, projectors, and major appliances. This extra protection can save you hundreds of repair costs or replacement expenses if something goes wrong. Instead of stressing over a broken appliance just out of the manufacturer’s warranty, you can rest easy knowing Costco has your back. It’s a peace-of-mind benefit that keeps your credit card bills down and your home running smoothly.

5. Gas discounts

Fueling up at Costco can lead to significant savings, especially with today’s gas prices. On average, you can save about $0.20 per gallon at Costco. For a vehicle that uses 489 gallons a year, that’s roughly $98 saved annually. Given that the average U.S. gas price is $3.61 per gallon, those savings add up. By choosing Costco for your fuel needs, you’re putting nearly $100 back in your pocket every year just by filling up your tank. It’s a simple way to keep more of your hard-earned money while enjoying the convenience of Costco’s high-quality fuel.

Executive members don’t earn 2% back on gas, but the gas savings could already be worth it, especially if you drive a lot.

So there, you have five fantastic Costco membership benefits that save you at least $100. With savings on everything from travel to prescriptions and even gas, it’s like having a money-saving sidekick that boosts your personal finances every time you shop.

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

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Are you considering a credit card with an annual fee? Check out a few considerations to keep in mind to make sure the fee is worth it. [[{“value”:”

Deciding which credit card to apply for is a big deal, as you want to choose one that will meet your needs. One crucial factor to consider is the cost of carrying a card.

Some credit cards don’t charge an annual fee. But others have annual fees, some of which can be expensive. The good news is that cards with higher annual fees usually include more perks. Here are some questions to ask yourself to determine if a credit card’s annual fee is worth it.

Do the benefits align with the annual fee being charged?

Before getting a new credit card with an annual fee, you should carefully review the benefits provided. You want to determine whether the perks offered match the price you’ll pay to use the card. But deciding whether you’ll use the perks is also essential.

Not every card feature is of value to every consumer, so only you can decide whether you’ll get value from a card’s perks. If a card’s perks are plentiful and match your needs, paying a yearly fee is likely worth it. But stay up to date on any benefit changes, as card perks can shift anytime, and there may come a time when the benefits no longer match the fee being charged.

Are the rewards opportunities plentiful?

If the credit card you’re eyeing has an annual fee, particularly if it’s a higher one, you should assess whether the rewards opportunities are plentiful. Many of the best credit cards with annual fees earn rewards at a higher rate than no annual fee cards.

They may also include several bonus rewards categories, allowing cardholders to boost their rewards when using their cards for their most frequent purchase categories. The annual fee may be worthwhile if you can earn rewards without changing your spending habits.

Will you earn a sizable welcome bonus?

Many credit card issuers offer welcome bonuses on their best cards. This helps attract more customers. New cardholders who meet the welcome bonus conditions, including minimum spending requirements, can earn a welcome bonus for a card.

A welcome bonus could help you collect a sizable stash of points, miles, or cash back. For this reason, getting a new credit card with an annual fee may be worth it. Make sure you research redemption options so you have a plan for how you’ll use your rewards.

Will you get regular use out of the card?

You should also consider whether you’ll use the card regularly. An annual fee may not be worthwhile if you only use the card occasionally. But if you use the card often, it makes sense to pay a yearly fee because you’ll continue to get value from it.

Frequent travelers, for example, will likely get good use out of a travel rewards credit card, so paying an annual fee is likely worthwhile. But if you don’t dine out often and you’re considering a dining rewards credit card with an annual fee, you’ll likely want to reconsider. There are dining rewards cards or flat-rate rewards cards with no annual fee attached. Explore your options and consider your intended usage.

Only get a card with an annual fee if you can afford the extra cost

If you’ll get good value from a credit card with an annual fee, that’s excellent news. But remember to consider the financial impact of getting a card with a yearly fee. If it’s beyond your financial capabilities, skip the card. If you prefer a credit card without an annual fee, review our list of the best no annual fee credit cards to explore your options.

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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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Curious as to what it’s like to drive a plug-in hybrid? Read on to see what my experience has been like so far. [[{“value”:”

Because I live in suburbia, having a car is a necessity. In fact, my husband and I are a two-vehicle household because even though we both work from home, our kids often need to get to different places at the same time.

For years, we made things work with my minivan and my husband’s aging Prius. But when that car started giving us trouble after 17 years, we made the decision to sell it and replace it with a newly leased vehicle.

Initially, we were going to replace our Prius with another traditional hybrid, but my husband talked me into giving a plug-in hybrid a chance. Now that I’ve had that plug-in hybrid for almost a year, here are some of the pros and cons I’ve come across.

1. My lease is more expensive than it would be for a gas-powered car

Unfortunately, my husband and I got our plug-in hybrid at one of the worst times to buy or lease a new car. Our hands were tied because our old car had become unreliable and we weren’t willing to sink thousands of dollars into fixing a vehicle that was 17 years old.

I’m not going to share what we pay for our lease each month, but let’s just say that we did the research and found that we’re easily paying a good $200 to $300 more per month for our plug-in hybrid than we’d be paying for a lease on a traditional gas vehicle. So that’s one obvious downside, and we’ve had to make changes to our budget to account for the high cost of our lease.

2. My insurance costs are higher, too

Lemonade says that the insurance costs for a hybrid car can be 7% to 11% higher than a standard car because hybrids tend to cost more in the first place. And since our plug-in hybrid costs more than a regular hybrid, we saw our auto insurance costs rise a good 25% once we replaced our aging Prius with our newly leased vehicle.

However, that sort of makes sense. I don’t love paying more for car insurance, but our plug-in hybrid’s value well exceeds that of an old hybrid, so the fact that our costs went up wasn’t a shock.

3. I’m saving a lot of money on gas

The U.S. Department of Energy says that the annual cost to fuel a plug-in hybrid is $1,000 to $2,000, compared to $2,000 to $7,000 for traditional gas-powered vehicles. Because our car has about a 40-mile range, we usually don’t have to fill the tank more than once a month.

By contrast, I have to refill my minivan’s tank every week, and sometimes multiple times a week, depending on how far away from home our kids’ sporting events are. So remember how earlier I said we’re paying a good $200 to $300 more per month for this car compared to a regular gas-powered car? Well, the way I see it, we’re basically breaking even on that extra cost by rarely buying gas.

4. I’m saving myself a lot of time

Filling up a gas tank can be a pain. Sure, it sometimes works out to fill up in conjunction with doing my Costco shopping (and that way, I get to save on gas, since Costco’s pumps are cheaper than the typical gas station in my area). But often, I have to go out of my way to fill up my minivan, which is frankly an annoying thing to do during a busy week.

The nice thing about the plug-in hybrid is that I largely don’t have to make the time for that errand. As long as we remember to plug the car in overnight, we’re usually good to go for all of our driving the next day. It’s only when we’re taking the plug-in hybrid on a longer trip that we start to deplete its tank.

A good solution when you’re not ready for a full-fledged electric vehicle (EV)

All told, a plug-in hybrid could be a good solution if you want the convenience of an electric car but aren’t ready for an EV. That’s the situation I’m in.

I don’t think the infrastructure is there yet for an EV to make sense for me. I have friends with EVs who have told me horror stories of having to wait hours for a charging station when they were far from home, and I’m not willing to subject myself to that. I’d rather have a car that gives me the option to revert to using gas should I need it. And in that regard, my plug-in hybrid totally fits the bill.

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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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