Should I cancel my Costco membership in 2024?

Millions of Americans are Costco members. For some, regular trips to their nearest warehouse store will save them money. But what about those who don’t get their money’s worth? If you find yourself in one of the following four situations, it’s time to consider whether a Costco membership could benefit you and your finances.

When you can no longer justify buying in bulk.

My sons are close in age and both went to college within two years. I was used to preparing meals for my sons and their friends. Considering the number of people I ate, warehouse shopping made sense.

When it was just my husband and I, we no longer had to buy large quantities of items. To be honest, it took me quite some time to get used to the change. I overbought more often than I’d like to admit, and told myself I wanted a bunch in the freezer when the kids came home to visit.

After wasting an embarrassing amount of expired food, I finally started shopping for two. Even now, as I walk through Costco, I have to remind myself how sad it is to throw away unused food.

According to Feeding America, Americans throw away $444 billion worth of food every year. This equates to 149 billion meals that could be provided to people in need. I am not saying this to offend you. I’ve been as guilty (or more guilty) of food waste as anyone I know. I don’t know how much of that waste I’m responsible for, but it makes me a little sad to think about all the extra money I could have put into my savings account rather than throwing it in the trash.

However, this is an easy fix if you buy them in bulk when you don’t need them. You can always skip the aisles that sell bulk items. Or, you may want to consider whether your Costco membership is still valid.

When a trip to Costco feels like a cross-country trip

Costco’s 600 warehouse locations spread across 47 states provide easy access to millions of shoppers. But if you live more than an hour away from the nearest Costco, it may be time to reevaluate whether you’re saving enough money to justify your annual spending.

Visit your nearest Costco and find out how much you can expect to save each year. Is it much more than you would save by shopping at your local grocery or department store? If you’re not sure what these savings might look like, free shopping apps can give you an idea.

You’ll also want to find out how much you’re spending on gasoline before making your final decision.

When you want to share membership

If you’ve shared your Costco membership with extended family, you’ve probably noticed that the retailer is cracking down on this practice. “Costco membership cards are non-transferable, but there are many ways to share the experience with family and friends,” the Costco website states.

The meaning is as follows: Members may bring up to two guests when visiting the warehouse. However, those guests will not be permitted to make purchases. All purchases must be made by a Costco member.

Our guest policy has not changed. What’s different is that Costco has recently turned its attention to making sure all purchases are made by Costco members. To achieve this, some store associates do spot checks and ask shoppers for photo identification. And according to an email from Costco: dallas morning newsStores are now asking you to show your photo membership card at self-service checkouts.

Gone are the days of sharing a single membership with extended family and friends. If the ability to share your membership is one of the reasons you keep it, it’s time to reevaluate.

When you overspend

Who among us hasn’t walked through a Costco store, stopped to look at items we could have lived without, and carried them to the checkout? One of the things that makes Costco so fun is checking out new products. But if you want to stick to a budget, buying unnecessary items will put a dent in your checking account.

You know the samples that Costco is famous for offering—samples that make you want to browse more than once? There’s a reason they’re provided. A study by Arbitron and Edison Media Research found that 35% of customers who try samples go on to purchase them during the same shopping trip. Sampling eliminates the risk of a purchase that the customer may not like.

Sampling is a great marketing tool, but it can be bad for your bottom line.

When to cancel

Costco makes it easy to pay for your membership, make returns, cancel your membership, and more. Costco is not a company that makes customers jump through hoops to cancel their memberships. If you decide your Costco membership is no longer working for you, you have two easy options.

1. Visit the member counter within a Costco store to receive an immediate refund.
2. Call Costco Member Services at 800-774-2678.

One thing we know for sure about life is that things change. If a Costco membership once worked for you but no longer provides the value you want, it’s okay to cancel. If your circumstances change again, you can renew your membership at any time.

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