Money Management

Is there someone important in your life who just had a baby? These three Costco finds could be the perfect gift. [[{“value”:”

Bringing a baby into the world can be an amazing experience — but also, a physically and emotionally exhausting one. So if you have friends who recently had a baby, you may be eager to show up to meet their little one with the perfect gift in hand. With that in mind, here are a few Costco finds a new parent might really appreciate receiving.

1. Koala Baby 3-piece Sleep & Play Set

Parents of newborns shouldn’t spend a ton of money on baby clothes since very young children can outgrow things in the blink of an eye. At the same time, it’s not good to have a limited wardrobe, because babies tend to have diaper explosions around the clock. Only having a handful of outfits could mean having to do laundry constantly during those early days.

That’s why extra baby clothes could be a much-appreciated gift if you have friends or family members who recently had a baby. Right now, Costco is selling a three-piece sleep and play set. Each coverall (otherwise known as a stretchie) has a zipper closure, which is much preferable to those outfits that snap up, since zipping and unzipping is faster and easier in the context of a fussy child.

The online price right now for this set is $16.99. But if you buy two sets, you save $10, bringing your total price to just $24 and your price per coverall to just $4.

2. LeapFrog Baby Monitor

The ability to put a sleeping baby down and walk away is a beautiful thing. It allows new parents to get some rest themselves or tend to household tasks like cooking and laundry.

But for parents to feel comfortable leaving the room or taking a nap in another part of a house, they typically want a way to know that their baby is doing just fine in their crib. Enter the baby monitor. Costco is selling a LeapFrog model for $149.99 that includes up to 1,000 feet of range, two-way talking, and a temperature and humidity sensor.

Baby monitors are the sort of product that tend to get mixed reviews. But this one has an overall four-star rating from Costco customers out of five, which isn’t bad considering that this product tends to fall into the “love or it hate” category, with parents commonly switching baby monitors several times over until they find the right one.

3. Homedics 3-in-1 Calming Cushion

Soothing a tired, cranky, or colicky baby isn’t a task for the faint of heart. And it can be a huge struggle for parents to calm their newborns when they get worked up for whatever reason.

You just might be somebody’s hero if you give the gift of this calming cushion. You can have a baby lie still in it or set it to vibrate for a soothing effect. The cushion is also easily portable, so if your new parent friend needs to do some work in the basement or kitchen, they can safely set their baby down the floor without worry.

Now at a price point of $139.99, this isn’t an inexpensive item. You may be able to buy a baby rocker for around $100 or less on Amazon if you’re on more of a budget. On the other hand, you could also spend around $200 on Amazon, depending on the model you want.

Of course, these are just some options if you’re looking for a gift for new parents. But before you commit to these, consider some alternatives:

A restaurant gift card, since new parents are often too swamped or tired to cook. Costco sells many discounted restaurant gift cards both in stores and online.A supply of diapers and wipes, which you can buy in bulk at Costco on the cheap. It could save your new parent friends a lot of money.The gift of your time, whether it’s to run errands, help out around the house, or give an exhausted set of parents a few hours off so they can go out.

One final option: If your new parent friends aren’t Costco members already, the gift of a membership is something they might really appreciate. For $60, you can purchase the gift of a Gold Star membership so your friends are able to reap savings on the multiple baby supplies they might need on a regular basis.

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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.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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46% of Costco members splurge for the Executive membership. Find out how your spending stacks up to the average Costco shopper. [[{“value”:”

Costco members have great taste — the wholesale club’s signature combo of low prices and quality stock simply can’t be beaten. Maybe that’s why the average Costco shopper drops $3,000 per year on Costco products, according to consumer data company Numerator.

That checks out. But how else do savvy Costco shoppers go about their business? Numerator breaks down Costco shopper habits even further. Keep reading to find out how you compare to fellow shoppers, plus confirmation that Costco is home to smart buyers.

The average Costco shopper spends $250 per month

Broken down, the average Costco member is implied to spend an average of $250 monthly on Costco products. That checks out. It’s two weekly trips with a $100 budget, plus an extra $25 for random last-minute stuff that you only knew you wanted when you saw it.

What kind of people shop at Costco: According to Numerator, Costco shoppers make good use of their club cards. Costco people spend 70% more on club products (i.e., products sold by clubs like Costco) than your typical shopper. Seems Costco fans are committed.

Costco fans are so committed, many members splurge for the Executive membership. On the March 2024 earning call, now-former Costco CFO Richard Galanti said 46% of members were Executive members, meaning they spent $60 extra on a Costco membership for perks like 2% back on purchases.

Fun fact: Costo shoppers are slightly less likely to be impulse buyers than your average shopper, according to Numerator. Love that. If you need more confirmation that Costco is home to smart shoppers, this is it.

Right now is a good time to buy from Costco

Costco is known for its low prices, quality brands, and bulk products. But right now may be an especially good time to buy from Costco.

On the March 2024 call, Galanti said Costco was “taking price reductions where we can” and “want to be the first out there trying to lower prices.” Galanti listed price drops on reading glasses, Kirkland batteries, and frozen fruit. That’s good news for shoppers concerned about inflation eating into their budget. Costco is tough to beat in the “how low can you go” game.

Speaking of inflation — Costco.com shoppers especially like Costco gold bars. Gold is a common inflation hedge. With inflation on the rise as of the latest March inflation report, it’s a legitimate concern. That said, the Consumer Price Index indicates grocery inflation is actually meager compared to high prices on everything else — once again, great for your average Costco member.

What’s coming next for Costco members?

Costco is bringing more Costco Next products to customers. Costco Next connects you with brands backed by Costco. So you, the Costco member, get special lower prices on quality brands, even though Costco does not handle shipping and handling and you buy directly from the brand. In short, you get more options.

Galanti said there were 70 partnered brands on Costco Next as of March. Costco aims to have another 20 listed by the end of 2024. If you’re a member, it’s worth checking out the Costco Next website. It might be partnered with one of your favorite brands, and you could get discounts.

The average Costco shopper supplements their regular grocery spending with Costco products. It’s a great way to buy bulk products (and affordable rotisserie chicken). Not a Costco member? Check it out. If a member of your household has a membership, you can shop with them for free.

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.Cole Tretheway 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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Improving your home? Read on to learn about some big renovations that could drive your homeowners insurance premiums upward. [[{“value”:”

When you purchase a home, you have to factor more than just your monthly mortgage payments into your budget. You also have to account for added costs like property taxes, maintenance, repairs, and insurance.

The average cost of homeowners insurance for a 12-month policy among insurers in Progressive’s network ranges from $999 ($83 per month) to $1,655 ($138 per month) for policies effective on or after April 1, 2020. But the amount you pay for homeowners insurance will depend on the type of property you own and where you live.

Now in the course of living in your home, you may decide to sink money into certain renovations that make it a more comfortable or enjoyable space. But know that these renovations in particular could result in paying higher homeowners insurance premiums.

1. Installing a swimming pool

There are numerous reasons why a swimming pool might add to your homeowners insurance costs. First, any addition of value to your home adds to its replacement cost, so that alone might drive your premiums upward.

But also, a pool has the potential to be a big hazard. You may need to increase your liability coverage in case there’s an accident on your property related to your pool. And that accident doesn’t necessarily have to happen in the water. A slippery pool deck could result in a broken bone, or water might leak out of your pool and cause damage.

If you’re going to install a pool, consider adding safety measures like a locking fence around it to minimize the potential for injuries. Some municipalities may require you to do this anyway.

2. Putting on an addition

An addition gives you the benefit of more living space, without having to move. But because you’re getting added square footage and are increasing the value of your home, you should expect the cost of your insurance to rise.

Think about it this way. If your three-bedroom home were to be destroyed, your insurance company would have to fork over a certain amount of money to rebuild it. If you now have two more bedrooms following an addition, there’s a higher cost to rebuild — so it could easily result in higher premiums.

3. Finishing a basement

Unlike an addition, when you finish a basement, you don’t add space to your home so much as take existing space and make it more usable. But still, you’re adding value to your property, which makes rebuilding it a more expensive prospect. So because of this, you should expect your insurance costs to rise.

Also, you may need to buy separate flood insurance if you’re worried about water damage in your basement following weather events. Many standard homeowners insurance policies do not cover flood damage.

If you’re finishing your basement, you may want to install a sump pump to help prevent water damage. A French drain is another good option to discuss with your contractor.

These are only three of many renovations that could result in higher homeowners coverage. Before you make any improvements to your home, contact your insurer, explain the scope of the project, and ask for an estimate of how it will impact your premium rates.

Your insurer may not be able to give you an exact answer until the work is completed. But this way, you’ll at least get a sense of what to expect before you start paying for the work you’re looking to do. And if the potential rise in your homeowners insurance costs is more than you can afford, it might sway you to hold off on renovations or consider lower-impact changes to your living space.

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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 recommends Progressive. The Motley Fool has a disclosure policy.

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CD rates remain relatively spectacular. Read on for four qualities of certificates of deposit that one writer doesn’t especially like. [[{“value”:”

One of the oddest things about being human is how we can hold two truths at once. For example, I feel great about myself when I eat lots of fruits and vegetables, but I don’t always enjoy the idea of preparing broccoli instead of opening a Snickers. I like the idea of doing the right thing financially, but I’d sometimes rather do something else.

Maybe that’s what has me thinking about certificates of deposit (CDs) these days. Here are a few things about CDs that absolutely bug me. I admit they’re silly, but I sometimes wonder if others feel the same way.

1. Commitment

One of my biggest financial blunders occurred when I invested in my first CD. I foolishly did not ensure I had enough money in an emergency savings account and ended up having to withdraw the funds I needed before the end of the CD term to cover a financial emergency. That withdrawal meant I lost any interest I might have earned if I’d just left the money alone.

Decades later, there’s plenty in my emergency savings account, and still, there’s something about committing money for a specific period of time that bugs me. For someone who’s been married since their teens, it’s a bit surprising that I find the idea of commitment so suffocating, but I do.

Like the cauliflower I plan to bake for dinner tonight, I invest in CDs because they’re good for me. The less mature, commitment-phobic part of me has to go along with it because I give myself no other choice.

What gets me through: I’m always happy I did the right thing once a CD matures, and the funds I had sitting around have earned a nice sum of interest. It’s knowing that I’ll be glad I invested once it’s all said and done that pushes me to invest in another CD.

2. Buyer’s remorse

Have you ever heard the term “analysis paralysis”? I have it. Making a decision can take forever because I’m so afraid of doing the wrong thing. For example, I’ve been looking for new cushions for my patio furniture for months, certain I will regret any decision I make. It’s a ridiculous problem.

Before I invest in a CD, I shop (and shop) for the best CD rates offered by a financial institution I know and trust. Inevitably, the moment I make the money transfer, I find an even better rate somewhere else and spend a couple of days wondering why I didn’t wait 10 more minutes.

What gets me through: Whenever I’m at a restaurant with other people, I find myself looking across the table once the food is delivered, wishing I’d ordered the same thing as the person across from me. I’ve learned to accept that as part of my personality. The same is true of CDs. I’ve come to expect that I will find a better rate shortly after making an investment, and just expecting it to happen takes the sting out of it. Even I think it’s a ridiculous issue.

3. “When I Die” updates

Like my father before me, I have a “When I Die” file prepared for my family. That way, if anything happens to me, my husband and children will know where to find everything they need to carry on financially. One part of the file concerns financial accounts. Any time I open a money market account (MMA) or transfer money to an IRA, I make an update so they’ll be aware of where money can be found.

Because it’s so important to me, I find myself visiting that file — often. But updating it with my and my husband’s information gets old. Given all that I feel needs to be accomplished each day, that small task sometimes feels much larger than it is.

What gets me through: Although I hope to work forever, my husband plans to retire in five years. Allow me to assure you: The man is going to spend his first day of retirement looking at a list of jobs that have suddenly become his. Updating the “When I Die” file is among the tasks I plan to happily hand over. Knowing there’s light at the end of this tunnel helps.

4. One more thing on my “to-do” list

Have you ever felt overwhelmed by all the tiny things on your to-do list? Truth be told, whenever it happens to me, it’s probably because I either created an unrealistic list or got caught up in something not on the list and lost track of time. Still, I really dislike the feeling of being behind.

The last thing about CDs that bugs me is that I need to keep track of when they’re set to mature. If I forget about one, it’ll roll over into a new CD, and the new CD may not have a rate I’m willing to get locked into.

What gets me through: Once I separate my anxiety from reality, I realize that I can add maturity dates to my calendar, just like I add everything else that needs to be done in my life. There’s no reason to be dramatic about it.

My point is this: If we look closely enough at anything that’s good for us, we may find something about it we don’t especially enjoy (weightlifting comes to mind). Like other financial decisions, if we allow ourselves to skip out on something because it doesn’t feel “just perfect,” we’re also skipping out on the profits we could have earned. And as goofy as my complaints may be, I refuse to lose out on profits by skipping CDs altogether.

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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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The price of Costco’s hot dog and soda combo has not changed for almost 40 years, but what if it does? Find out how this shift could impact your shopping. [[{“value”:”

Costco’s $1.50 hot dog combo has achieved legendary status since it first appeared on the menu almost 40 years ago. The price has stayed the same through recessions, a housing crisis, and the recent sky-high inflation. During that time, Costco executives viewed the deal as part of the warehouse store’s DNA. So much so that it’s said the mere mention of a price hike sparked death threats among senior management.

But all good things come to an end. And changes at the top of the wholesale giant mean Costco’s hot dog combo deal is not quite as permanent as we thought.

What’s happening to Costco’s $1.50 hot dog and soda combo?

To be clear, you’ll still be able to pick up a $1.50 hot dog and soda for the foreseeable future. What’s changed is that the company is no longer saying it will stick with the deal, come hell or high water.

The company’s CFO, Richard Galanti, recently stepped down after nearly 40 years on the job. His replacement is Gary Millerchip, who’s been CFO at Kroger since 2019. Just a few years ago, Galanti used the word “forever” when talking to investors about the hot dog and soda price. But this March, he told Bloomberg, “It’s probably safe for a while.” That’s a long way from forever.

RELATED: Best Budgeting Apps

The shift in the company’s hot dog stance is one thing. For regular Costco shoppers, the bigger question is what else might change. When a beloved brand starts tinkering with its core offering, bigger moves may be afoot. And if you’re a consumer worried about how much money is in your bank account, it’s worth paying attention.

The times, they are a-changin’ — even at Costco

Costco members will be used to shifts in its product range. Outside of its core offerings, one of the ways it keeps prices low is to switch things up with unexpected items and seasonal deals. For some, one of the joys of Costco is the way you can turn your regular shop into a treasure hunt.

A less welcome change Galanti touched on last year was the potential to increase membership fees. Galanti told investors, “It’s a question of when, not if.” Given that fees have not changed since 2017, there’s a good chance membership costs will rise in the near future.

Costco’s entry-level membership currently costs $60 a year. Regular customers will likely benefit from its executive membership at $120 a year, which includes 2% cash back on purchases. The company has also started to get stricter about its membership rules. For example, it is bringing in membership card scanners at the entrance of some stores. It is also asking to see people’s cards when they use the food court.

Check out our guide to Costco for ways to make the most of shopping at this retail giant.

Other changes to watch out for at Costco? The chain plans to open around 30 more U.S. stores this year. And it will expand its Costco Next offerings. This means members will be able to buy at low prices directly from even more suppliers. You can also expect further improvements to its app and online store.

Key takeaway

If you’re a long-time customer of any store, it’s natural to start to shop on autopilot. I could almost do my regular grocery shopping blindfolded as I reach for the same staples I cook with regularly. But items that were good value a few years ago may not still represent the best deals today — even more so when the leadership of a company changes.

Use price comparison apps and online stores to check prices while you shop. And don’t be afraid to shake things up a little yourself. Even if you’re a die-hard Costco shopper, see what other stores have to offer once in a while. It’s also worth trying own-label goods or occasionally testing cheaper brands. They often taste just as good and can free up cash for other things.

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.Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Gala. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.

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Want to earn more on your money this year? Read on to see how. [[{“value”:”

The nice thing about keeping money in the bank is that it’s basically a risk-free means of growing wealth. If you bank at an FDIC-insured institution and limit your deposits to $250,000 (or $500,000 if you have a joint account with someone else), your money will be protected in the event of a bank failure. On the other hand, if you put your money into the stock market, there’s the risk of losing it.

Historically, the stock market has delivered much higher returns on people’s money than bank accounts over the long term. But in 2023, following a string of interest rate hikes from the Federal Reserve, banks started paying more generously.

As a result, Americans were able to earn a whopping $315 billion in interest on their savings last year. That’s four times as much as the $78.7 billion in interest savers earned in 2022.

Meanwhile, there’s still plenty of opportunity to earn a lot of interest on your money in 2024, since banks are still offering pretty attractive rates. But if you want to snag the highest interest rate possible, there’s one key move to make.

Open a CD

It’s more than possible to find a high-yield savings account paying upward of 4% interest right now. But if you truly want the best interest rate on your money, then a certificate of deposit, or CD, is the way to go.

Since CDs require you to tie your money up for a preset period, they tend to offer higher rates than savings accounts. Also, with a CD, the rate you lock in is guaranteed throughout your CD’s term.

With a savings account, you could start out earning 4.25% on your money. But if interest rates fall during the year, come December, your savings account might only be paying 3.75%. On the other hand, if you open a 12-month CD paying 5.10% this month, that’s the rate you’ll get through May 2025.

Finding the right CD

Within the realm of CDs, you might see different rates based on different terms. These days, shorter-term CDs are typically paying a bit more than longer-term ones. But there’s a reason for that.

The Fed is expected to cut rates at some point in 2024 and then continue on that path as inflation cools. Because of this, banks need to minimize their risk for longer-term products, which is why a given institution may be willing to pay you 5.10% on a 12-month CD but only 4.20% on a 60-month CD.

Either way, it pays to not only look at different banks to see what their rates are, but also, compare your options with regard to CD terms. Of course, do keep in mind that the rates CDs are paying today may not be available for a long once rates start to fall. So while you may be inclined to open a 12-month CD because its rate is the highest one a given bank offers, it could make more sense to accept a slightly lower rate on a longer-term CD.

You might also consider building a CD ladder. This has you opening multiple CDs with varying terms, so your money frees up at different times. Remember, CDs often impose a penalty for taking an early withdrawal. A CD ladder could help you avoid one.

It’s amazing to see how much money Americans earned in interest in 2023. If you want to enjoy your fair share of interest income in 2024, shop around for CDs sooner rather than later — before the Fed starts lowering rates.

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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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