For a while there, it seemed like Costco’s $60 basic membership annual fee was here to stay. The $60 price point went into effect in June 2017. And for many years after, that number didn’t budge.
But in July, Costco announced that after a seven-year stretch, members should brace for a fee hike. Starting Sept. 1, a basic Gold Star membership at Costco will cost $65 instead of $60.
For the record, an Executive membership will be more expensive, too. Come September, you’ll pay $130 instead of $120. An Executive membership earns 2% cash back on most Costco purchases.
If you have a basic Costco membership, you may be annoyed at the idea of having to pay $5 extra. But here’s why it really shouldn’t bug you.
1. It’s hardly any money on a monthly basis
When money is tight, any extra expense can seem insurmountable. But when we break down Costco’s fee hike on a monthly basis, you’re talking about paying an extra $0.42. And let’s be real — there are probably ways you can free up $0.42, or the entire $5, for that matter.
Maybe you treat yourself to a $5 latte once a week. That’s not unreasonable, even if you’re living mostly paycheck to paycheck, because you have to get some enjoyment out of life, too. But in this case, if you’re worried about the Costco fee increase, skipping your latte one time during the year could put that money back in your pocket.
2. You might save more than you pay and benefit in other ways
You might look at Costco’s fee hike as yet another example of corporate greed. But it’s well-known that Costco uses its membership fee revenue to offset its costs and pass savings along to consumers.
To put things another way, by paying $5 more for Costco access starting Sept. 1, you might set yourself up to save even more on the essentials you buy for your household. Plus, Costco is constantly looking to expand its member benefits and services. Once that fee hike takes effect, we could see positive changes at the store. That could mean anything from new product lines to expanded auto services to a wider range of health-related offerings.
Don’t get too hung up on Costco’s fee hike
Nobody wants to spend more money at a time when things are so expensive in general. But do realize that paying an extra $5 for Costco might benefit you more than it hurts you.
If you’re wondering whether you should cancel your Costco membership in light of the upcoming fee increase, ask yourself whether you’re getting good value out of your membership right now. If the answer is no, then you should cancel no matter what. Why throw your money away? But if the answer is yes, then there’s a great chance you’ll continue to get good value at a slightly higher price point.
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