Is it Worth it to Upgrade to a Costco Executive Membership? We Do The Math
Upgrading to a Costco executive membership can be a decision filled with questions. Is it worth the additional cost? Will you get enough value out of the added benefits that come with an executive membership? To help answer these questions, we’ve done the math to break down the key differences between the two types of Costco memberships and analyze whether upgrading is a worthwhile investment for you.
The standard Costco Gold Star Membership comes with an annual fee of $60. In contrast, the Executive Membership costs $120 per year. This means that there is a $60 difference in price between both membership tiers. On top of that, as an Executive member, you’re entitled to several additional perks that Gold Star members don’t receive.
One of these perks includes earning 2% cashback on eligible purchases at Costco and Costco.com, up to a maximum of $1,000 in cashback rewards per year. To recuperate the extra $60 you’ve invested in upgrading your membership, you’d need to spend at least$ 3,000 annually at Costco ($3000 x 0.02 = $60).
If you frequent Costco and spend more than the required threshold, upgrading your membership makes financial sense. However, if your spending falls short of this benchmark, you may not see the monetary benefits and should reconsider upgrading.
Additional benefits exclusive to Executive members include:
1. Lower prices on check printing.
2. Discounts on identity protection services.
3. Extra savings on eligible travel purchases.
4. Exclusive offers on auto and home insurance.
To make a decision about upgrading your membership based purely on finances, weigh these benefits against your personal shopping habits and spending needs. If the additional incentives and discounts will benefit you in your daily life or if you already meet or exceed the required spending threshold for cashback rewards, then investing in an Executive membership could be a smart move.
In conclusion, upgrading to a Costco Executive Membership is worth considering if you’re confident that your spending habits and usage of additional benefits will outweigh the extra investment in membership fees. If not, it may be more financially sensible to stick with the Gold Star Membership. Ultimately, it’s important to analyze your personal shopping patterns and financial requirements before making the decision to upgrade.