Are Costco Memberships Worth It for Families

Let’s face it, grocery bills can pile up fast, especially in today’s economy. Add on a few kids into the mix, and you have yourself a recipe for an expensive bill. That’s why many budget-conscious families are constantly finding ways to save money on groceries, with bulk buying at wholesale retailers like Costco becoming an increasingly popular strategy. While the store is often seen as a haven for bulk shoppers and deal hunters alike, there’s a catch–access comes at a cost. Their basic membership runs you $65 per year, while their Executive Membership costs $130 annually.

So, is a Costco membership actually going to save your family money? And if so, what membership should you get? In this guide, we’ll break down five pros and cons of getting a Costco membership, along with the benefits that each membership tier offers.

5 Reasons Families Enjoy Having a Costco Membership

1. Bulk Groceries: This is the main reason many families flock to Costco. Their bulk pricing makes it easy for families to get discounts on groceries, restock on their favorite snacks, frozen foods, produce, and more at a fraction of the price of purchasing each item individually. Especially, if you’re feeding a large family–the savings stack up fast.
2. Bulk Household Essentials: The savings go well beyond groceries. For families that burn through household essentials, Costco can be a major money-saver. Members can stock up on toilet paper, paper towels, diapers, baby wipes, shampoo, and more. Compare that to restocking weekly, and you’ll be shocked at how much money you can save.
3. One-Stop Shopping: Families can get busy, which means taking multiple trips can be a major hassle. But at Costco, you’ll be able to tackle most of your errands in one trip. Whether your family needs a prescription refilled, new glasses, passport photos, or even gasoline, Costco offers a wide range of services and goods all in one convenient location.
4. The Iconic Food Court: Costco’s famous food court is a great perk to have. Not feeling like cooking dinner? Head over to the food court for dinner on a budget. Munch on their famous $1.50 hot dog and soda combo, grab a slice of pizza for $1.99, a chicken bake for $3.99, or get all three.
5. Affordable Travel: Traveling with a family can get extremely pricey, but Costco members can book vacation packages, car rentals, and more at a discounted price. Plus, Executive Members earn 2% rewards on their travels (more on that later).

Now that we’ve explored the benefits of getting a Costco membership for your family, it’s important to take a look at the potential drawbacks. While it’s clear that there’s a ton of potential for value, a Costco membership isn’t always going to be a perfect pick for all households. Let’s break down some of the pitfalls to consider before committing to a membership.

Costco Pitfalls for Families: 5 Things to Watch Out For

1. Bulk Isn’t Always a Good Thing: While it remains true that you save more money per unit when you purchase your groceries in bulk, food spoilage can become an issue. If you don’t think your family will finish everything in time, you can end up with a large amount of waste, and as a result, you might actually be losing money.
2. The Annual Membership Fee: If you’re already a family that subscribes to a ton of  shopping services, whether it’s Amazon Prime, Walmart+, or anything in-between, it might not make sense to tack on an annual fee of $65 to $130 per year if your goal is to minimize spending.
3. Temptations Galore: When you visit a Costco, there are shopping temptations everywhere. With every turn, you’ll find a new shiny gadget at a discount, ranging from flat screen TV’s, to the latest and greatest toys for your kids. So, if you’re not good with resisting the shopping bug, this may not be for you.
4. Excess Clutter: If you already have a small home, buying in bulk may not be for you. With most of their items being in bulk, troubleshooting where to place your items might end up as clutter.
5. Long Lines: Costco is a popular place to shop, which means that lines will be long in almost any location you go to. Whether you’re in line for gas, groceries, or the pharmacy, expect extended wait times. If you’re a family that is always on the go, or if you have children who struggle being in one place for too long, a membership may not be for you.

If you’ve decided that a Costco membership is the right fit for your family, the next step is choosing the membership tier that will provide you the best value for your needs and budget. Costco currently offers two membership options, each with their own set of benefits:

Gold Star Membership (Basic Tier, Everyday Value)

At $65 per year (before sales tax), this is Costco’s basic membership. With this card, you’ll get access to the basics like in-store shopping, and online shopping. You’ll also get two membership cards, and a 100% satisfaction guarantee which entitles you to a refund at any time if you don’t find that you’re getting good value out of your plan. For most families, this plan should suffice. But if your family has additional needs like beating the opening rush, the Executive Membership could yield better value.

Executive Membership (Highest Tier, Best Value)

This membership plan is double the cost of the Gold Star plan, with an annual fee of

$130 per year. However, it comes with additional benefits like an annual 2% reward on up to $1,250 of eligible Costco purchases. If you plan on traveling through Costco Travel, this could be a great opportunity to earn your reward in one go. Additionally, you’ll get to shop an hour before the store opens to Gold Star Members, so you might be able to checkout quicker, and avoid crowds. Last but not least, this membership provides a $10 monthly credit on SameDay.Costco.com, or Costco via Instacart.

The Verdict

Well, that really depends on your family’s unique wants and needs. But generally speaking, a Costco membership can be a smart and valuable investment for busy or growing families looking to save both money and time. As long as you maintain a balance between your actual needs and wants, along with staying mindful about your home storage space, the benefits can often justify the annual fee.