Is Costco's New Higher Membership Fee Too Expensive for Senior Citizens?
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Costco is a warehouse club that offers its members discounted pricing on everyday goods. Many people like to shop there because of the fantastic deals. However, there is an upcoming change that shoppers should be aware of because it will impact their checking accounts.
Costco is increasing membership fees in September. Depending on the membership, the fee will rise between $5 and $10 per year for shoppers in the United States and Canada. While this isn't a huge price rise, it's news that may disappoint some members -- especially senior citizens, who typically have limited income. Will the new higher fees be too expensive for seniors?
Costco membership costs are set to rise soon
On July 10, 2024, the retailer announced that it would be increasing the cost of annual memberships on Sept. 1, 2024. This change will impact shoppers in the United States and Canada.
The Gold Star membership will increase by $5 from $60 to $65, and the Executive membership will increase by $10 from $120 to $130 annually. While it's not a huge price difference, this change will impact the wallets of all members, including seniors.
The membership benefits available to seniors are plentiful
Yes, paying more to be a Costco member will be an adjustment. However, seniors can get great value from a membership. Here are a few ways that seniors can save money with a Costco membership card in their wallets:
Discounted prescription drugs
Affordable hearing aids
Low-cost eye exams and discounts on lenses and frames
Affordable prepared meals for added convenience
Seniors should consider the perks provided and their budget to decide if they can continue to afford to invest in a Costco membership. For many seniors, it may still be worthwhile.
It's not all bad news for Executive members
Higher membership fees aren't the only change to expect. The retailer also announced that it would improve one of its Executive membership benefits. With this membership, you can earn 2% rewards on eligible Costco purchases, including Costco Travel bookings.
Shoppers can earn up to $1,000 annually in rewards. But soon, they'll be able to earn even more. As of Sept. 1, 2024, Executive members can earn up to $1,250 in rewards. This additional boost is welcome news, considering they will only pay an extra $10 per year to be members.
Consider this strategy to feel less financial strain
You may be upset about this news if you're a senior citizen who shops at Costco. But there's one step you can take to feel less impact. I suggest saving money to cover your membership fee before your next renewal. The additional $5 or $10 increase may feel less significant if the money is already stashed in your high-yield savings account.
If you're not yet a Costco member but have been thinking about joining, consider joining before Sept. 1, 2024. This way, you can lock in the old membership price for one year. This allows you to try Costco to determine if the higher membership fee is worth paying later.
Don't miss out on rewards
Life is expensive, and every dollar you save adds up. Earning rewards when you shop can increase your savings. Our best strategy for saving money at Costco is to use a rewards credit card at checkout.
You can earn valuable rewards, including cash back, to maximize your savings and help you cancel out the increased membership costs. Look at our list of the best Costco credit cards to learn how each card earns rewards.
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.Natasha Gabrielle 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.
