How To Save Money at Costco These Days

*This post has been reviewed by an Illinois Registered CPA. However, when making important financial decisions, it's best to speak with your financial advisor.

Last Updated on September 6, 2022

Learn How To Save Money at Costco

Is Costco your go-to solution for groceries? You might be among the many who prefer this store that has more than 111 million cardholders worldwide. You might choose Costco for its products or prices. You might choose it for convenience because it’s close to your home. But one thing is for sure, you definitely need to learn how to save money at Costco.

This is what we’ll focus on as you learn how you can save money at Costco and what deals the store offers for members. Let’s see how you can spend less while shopping at Costco or by being a Costco member.

How to Save Money at Costco by Becoming a Member

A Costco membership is similar to any other membership deal. You have to give something in exchange for customer benefits. That something is usually a membership fee and Costco is no exception. If you want to get a membership, you have to pay. There are three membership options: two for consumers and one for businesses:

Gold Star Membership – The first tier at $60 annually
Executive Membership – The second tier at $120 annually

You need to pay this membership fee upfront. Then, you can start buying products in bulk from Costco and enjoy discounts at checkout. That is how you save money. Although buying more means spending more, the price per item is lower.

Buying in bulk can help you save money on groceries. Have patience and plan according to your budget. You will see the positive results of this strategy in time. Weeks will pass, and you may still have plenty of supplies at home.

Even the first membership tier (Gold) gives you access to a Household Card that allows you to visit any Costco store. If you choose the Executive Membership plan, you also enjoy two percent cash back on your purchases. Business owners can also enjoy different benefits at Costco, such as a free Household card. They can purchase products from the store for business, resale, or personal use.

How to Optimize Your Spending at Costco and Save Money

Costco is an excellent solution for saving money, but buying in bulk means having money in the first place. If you’re on a limited budget, establish some financial priorities. For example, choose two to three products for bulk shopping per month. Alternate the product types. In a month or two, you’ll have a reliable stash of supplies at home.

To make the most out of each shopping session at Costco, try to budget. Budgeting involves three main steps:

Calculate your available funds.
Make a list of the items you want to buy.
Allocate a fixed amount to each product category.

The point in dividing your budget into separate categories is to create some limits. If you only want to use $50 to buy juice, limit your spending to this amount. The same goes for all the other product categories. This is what the envelopes budgeting method looks like. It helps you spend in moderation as long as you can stick to the allocated amounts for each expenditure.

You can apply this strategy to all your living expenses. Try to create a similar list that includes broad categories, such as:

Rent
Bills
Gas
Insurance
Necessities

Assign a budget to each expenditure and stick to it. This strategy will help you avoid debt. It can even help you fix your credit fast.

The half-payment method is another well-known budget strategy. You can use it to tackle recurrent expenses. You can adapt it to your grocery spending, too. This is possible if you spend approximately the same amount on groceries each month. What you do with the half payment method is save money for groceries in two steps.

The first step comes with your first monthly paycheck. You put aside 50% of your grocery shopping budget from this money. From the second paycheck, put aside the other half. Before the end of the month, you’ll have enough to spend on groceries the following month. This budget method has three main advantages

It is easy to understand and apply.
It ensures you have money for your basic needs.
It can apply to any other regular expenses.

Image source: Pixabay H/T Suirrel_photos

Saving Money to Shop at Costco by Budgeting

Many shoppers ask themselves why can’t I save enough money for groceries? Saving money is not easy because it requires patience and commitment. It is a habit many of us build over time, with sacrifice. Yet, there are ways to save money faster for groceries or any other expenses. One of the most well-known money-saving strategies is the 50-30-20 method.

This budgeting strategy requires you to save 20% of your monthly income. From the remaining amount, 50% goes toward covering your necessary expenses. The remaining 30% represents wants. You can use this money as you please. The point is to save as much as you can, maybe even more than 20%.

Other Costco Membership Benefits

There are other benefits to becoming a Costco member. Here are a few additional perks you can enjoy as a Costco member.

Tourist amenities at lower prices

Few people know this, but you can save money on vacation by choosing Costco. No, the store is not a travel agency, but it offers a special loyalty program called Costco Travel. That is a club that enables you to access tourist services at lower fees. The store basically has some agreements with tourism partners. Based on these deals, you can book cheaper:

Hotels
Cruises
Tickets to tourist destinations

The best part is that this is an international program. You can leverage it to travel to Europe, for example. Europe is known for its pricey travel-related services and a Costco membership can help you save money on your European vacation.

Different health-related items at lower prices

Costco also helps people with health-related issues such as hearing or vision problems. It offers products in this niche, such as hearing aids or eyeglasses, at lower prices. If you’re on a basic health insurance plan, why not profit? Paying for an optometrist’s consultation can wreck your budget.

Costco accepts most insurance plans. It fills and sells prescription products for vision and hearing problems. You could get the eyeglasses or hearing aid devices you need at a lower price outside the medical office by choosing Costco.

Good deals on gadgets

If you love gadgets, you have another reason to become a Costco member. You could easily find the latest iPhone at Costco, for example. You might also find deals on electronics at Costco. You might also get some store-related benefits when purchasing a phone from Costco.

Other big brands like Samsung are also available. An advantage is that the gadgets might cost less at Costco, depending on when you purchase them. As of this writing, here are some of the electronics prices available at Costco vs. other stores:

Product	Costco Price	Walmart Price
iPhone13	$1,219	$1,277
iPhone 12	$749.99	$999*

* These prices are as of July 2022.

* The $999 pricing is based on $27.75 at 36 months.

Gift Cards for Friends and Family

How can you save money at Costco even when you’re not buying something from this store? The answer is gift cards. This is a common perk big stores offer to loyal customers. You can check out the available Costco partners in your area. Ask a shop assistant to provide you with more details if you cannot find this information online.

Costco can offer you discounts at different restaurants or cafés. Other leisure activities you can enjoy at lower prices thanks to Costco are going to amusement parks or movie theaters. The gift cards you can get have different values. Choose whatever suits your budget. Regardless of the price, the offer will benefit you. These cards also make up a great birthday gift idea.

Additional Costco Benefits for Professionals

Costco takes any shopper category into account. You can purchase products there as an individual if you get a membership plan. You are welcomed as a business owner too, but there is more. This store also offers additional perks to certain professional categories, such as discounts, shop cards, a free subscription or an extra subscription. The professionals who can enjoy some Costco perks include:

First responders
Military service members
Doctors
Teachers

The advantages differ based on the category you fall into. Ask for details when you go shopping at Costco the next time. For example, military service members get a $20 Costco shop card. The same offer is available for teachers. You can also enjoy extra discounts at Costco if you’re a college student. You can also check out the official Costco website to learn more about their deals and benefits.

Take Advantage of Discounts Even After Buying Products

This sounds strange, but at Costco, it’s possible. You might have bought an item from the store. The next week when you go there, you see it on sale. It makes you want to regret your purchase, right? Well, it shouldn’t. It’s possible to enjoy the discount. This applies if the sale becomes available less than 30 days after purchasing the item. You could get the difference for the product you bought, so don’t shy from claiming it.

Watch Out for Asterisks on the Price Tag

This symbol has a meaning, and many Costco products feature it. If you see an asterisk on the price tag, consider buying the product. It means the store will not restock the item once it’s gone. It might take a while before the product becomes available again. These products might come with significant discounts as they are ready to leave the store for a while.

Products You Can Save Money on at Costco

Costco offers below market prices on many products, but some types of products are a must-buy from Costco. Here is a shortlist of the best deals you can find at Costco.

Tires

Costco offers tire promotions on different big brands. The tire installation service is also affordable. It also includes repairs, inflation checks, or rotation, among others.

Baby products

You can enjoy affordable prices as a Costco member and parent for baby products like diapers and baby formula. Kirkland diapers is Costco’s brand, and typically comes with affordable pricing.

Medicines

If you’re a member, you can enjoy Costco’s prescription medicine program. It enables you to get prescription drugs at lower prices and save money. You can also find reasonable prices for over-the-counter medication.

Bottled water

The best deals on bottled water at Costco are also available for the store’s brand – Kirkland. For example, you can get a bulk pack of water, where each bottle is $0.23. You’ll have to likely pay around $440 for those savings, but it could be worth it if you need a large amount of water.

Frequently Asked Questions (FAQs)

Does Costco save you money when you shop online?

You can also shop online at Costco. This is a more convenient option, but it may not help you save money. Products cost more online than at Costco’s locations. You don’t have to be a member to shop online. Anyone can access the virtual store, but you’ll pay 5% extra at checkout as a nonmember.

Is it worth getting the Executive Membership at Costco?

It depends on how much you spend there. Remember that there is a 2% cash back for Executive members. The price difference between the two subscription types is $60. Weigh each option to see which is more convenient for you.

The 2% cash back can help you increase your budget for your grocery shopping. Imagine you spend $500 on groceries at Costco each month. Here is the extra amount you gain from this benefit.

Money spent at Costco per month	Cash back amount (2%)
$500	$10
Cash back bonus per year	$120
Cash back bonus for two years	$240
Cash back bonus for five years	$600

With a $10 cash back bonus per month, in two years, you earn $240 and in five years, $600.

Can I downgrade my Costco membership?

Now you know how to save money at Costco with the Executive membership. What happens if you realize it’s not worth it for you? Can you downgrade to the Gold Star plan? The answer is yes. You can do that at any time.

Sources:

What is the difference between each type of membership? (n.d.). Retrieved July 23, 2022, from https://customerservice.costco.com/app/answers/detail/a_id/857/~/what-is-the-difference-between-each-type-of-membership%3F

Electronics | costco. (n.d.). Retrieved July 23, 2022, from https://www.costco.com/electronics.html

Budget Your Trip. (2022, August 2). Europe: Travel cost rankings by country (2022). Budget Your Trip. Retrieved August 2, 2022, from https://www.budgetyourtrip.com/europe/rankings

Admin. (2020, January 16). Costco eyeglasses buying experience – best prices on eyeglasses? Prices and Fees. Retrieved August 2, 2022, from https://www.pricesandfees.com/costco-eyeglasses-buying-experience-best-prices-on-eyeglasses/