Is a Costco membership worth it?

After one year of Costco Executive membership it was time to ask the “is it worth it” question. Thankfully for us, after one year, it did pay for itself for the first year. For us, at least for the first year, being an Executive Member vs Gold Star Member at Costco did pay off, but we also bought too much stuff!

So how about in 2024?

After my back of the envelope calculations came up with a net gain of $26 for 2023, it was time to think about 2024; Do we upgrade or downgrade?  Last year's sign up also included the $50 signup bonus whereas this year’s continuation will not? Hm?

The worth now comes down to our individual shopping habits and what we intend to purchase at Costco this year?

The Executive level membership costs $120 per year, which is double the cost of a Gold Star membership of $60. However, Citibank Credit Card Executive members receive a 2% cash back reward on all eligible purchases, up to $1,000 per year and can get free shipping on most online orders (we have not used that perk yet). The added plus, if you are close enough to use a Costco filling station, is that there is a 4% cash back on Costco gasoline (but depressingly no diesel pump).

So ... if we spend the same this year as last, the 2% cash back rewards will still offset the additional $60 on top of the membership fee. We will go for another year. 

From Costco's marketing pitch:

In addition to the cash back reward, Executive members also get access to a number of other benefits, including:

• 2% cash back reward Earn 2% cash back on all eligible purchases, up to $1,000 per year.
• Early access to sales and events Get access to sales and events before they are open to the general public.
• Free shipping on most online orders Get free shipping on most online orders, with some exceptions.
• 2% cash back on Costco Travel purchases Earn 2% cash back on all Costco Travel purchases.
• Discounted rates on car rentals, hotels, and other travel services Get discounted rates on car rentals, hotels, and other travel services through Costco Travel.
• Complimentary guest passes Get two complimentary guest passes per year that you can share with friends and family.

If you take advantage of these benefits, the Executive membership can be a great value. However, if you don't shop at Costco very often or don't use the other benefits, then the membership may not be worth the cost.