There’s Finally a Costco in Your City. Time for a Membership?

Costco is a popular warehouse club with nearly 900 locations worldwide. The company continues to expand, with new stores opening all the time. If a new club recently opened in your city, you may be wondering whether it’s time to spring for an annual membership. 

A Costco membership can be a worthwhile investment. The retailer’s members-only discounts allow shoppers to keep more money in their checking accounts. Here’s what you need to know before you become a Costco member. 

You must pay a membership fee to join Costco 

Costco isn’t a typical retailer like your local grocery store. It’s a members-only retailer, meaning you need a membership card to access all of the deals inside the clubs. You can shop at Costco.com without a membership, but you must pay a 5% surcharge. If you want to shop in-club, you need an active membership. 

Costco offers a Gold Star membership for $60 per year and an Executive membership for $120 annually. 

However, the retailer recently announced it would hike membership prices on Sept. 1, 2024. At that time, a Gold Star membership will cost $65 and an Executive membership will cost $130. 

Here are the differences between the two memberships. 

Gold Star

Costco’s Gold Star membership is perfect for shoppers who want to save money when buying everyday goods. With this membership, you can shop in-club and online to access the members-only deals. You may want to start with this membership if you’re new to Costco. 

Executive

If you prefer to get more perks and earn rewards, an Executive membership may be right for you. This membership includes added benefits, like discounts when ordering checks and additional travel perks when booking eligible travel packages through Costco Travel. 

But that’s not all. You can also earn 2% rewards when making eligible Costco purchases. Through August 2024, Executive members can earn a maximum of $1,000 in rewards annually, but starting in September 2024, the maximum rewards cap will increase to $1,250 per year. 

This may be an ideal membership choice if you want to earn rewards when buying groceries, household goods, Costco Travel bookings, and more. To determine if you can get value from an Executive membership, decide whether you’re likely to spend at least $3,250 at Costco annually. If you spend this much, you’d earn $65 in rewards, which is the difference in price between the Gold Star and Executive membership prices as of Sept. 1, 2024. 

Do this before joining

Is a Costco membership right for you? While many shoppers benefit from a warehouse club membership, not all do. It’s a good idea to review the products and services available on the retailer’s website to see if the items you typically buy are available. 

Another option is to go to the club with a friend or family member the next time you shop to see what’s available. Members can bring two guests when they shop. Only members can shop in-club, but this could be an excellent way to learn more about Costco. 

Finally, review your finances. It’s never a good idea to pay for a membership if you can’t afford it. Ensure you can afford the yearly membership fee before you invest in a Costco membership card. 

If you have debt, focus on eliminating it before taking on additional expenses. If you need guidance while on your debt-payoff journey, consider using one of the best debt payoff apps.

Still unsure whether a membership is right for you? Keep in mind that Costco offers a risk-free guarantee on its memberships. If you’re not satisfied, you can get a refund. This guarantee can give you confidence when trying out a membership. 

Here’s how to maximize your savings

Do you like earning rewards when you shop? You can earn rewards when you swipe your credit card at checkout. Our best strategy to save money at Costco is to use a credit card that earns rewards to pay for your purchases. Many Costco members earn credit card rewards. 

You can check out our list of the best credit cards for Costco to review our top card picks. Cash back rewards can help you maximize your savings when shopping for everyday essentials. Every dollar you save or earn through rewards is a win for your wallet.