Costco Shoppers Are Doing This to Save Money

Now that food prices are higher than in years past, many people are looking for ways to save money while doing their grocery shopping. Joining a warehouse club is one way some Americans have been able to cut back on their spending when buying food and household essentials. But even Costco members are feeling the impact of higher prices. Some Costco shoppers are buying cheaper alternatives to keep more money in their checking accounts.

Costco members are buying cheaper products

Costco recently had an earnings call with investors. During the call, CFO Richard Galanti discussed some notable shopping changes members have made to save money. Because of rising living costs, many people are altering their purchase habits to buy cheaper items.

Some members no longer buy pricier meats like beef and now choose cheaper meat products like chicken and pork. Some are forgoing the fresh meat and are opting to buy less costly protein-packed alternatives like canned meat and fish.

Other changes to shopping behaviors further show that Costco members are becoming more conscious about spending. There has been an increase in members purchasing products from Kirkland, Costco's private label brand. Since Kirkland products are cheaper than name-brand alternatives, loading up on store-brand essentials can provide significant savings.

Given that most people throughout the country are now paying more for gas, food, rent, insurance, and utilities, it's no surprise that shoppers are changing their typical buying behaviors to stay on budget. Even if it doesn't feel like a lot, every dollar saved can improve your financial situation.

If you've been feeling the strain amid higher living costs, you may want to decide if switching to cheaper alternatives to your normal purchases makes sense. By taking extra steps to keep your grocery spending in check, you can free up some of your income to better focus on your financial goals, like contributing to your IRA account so you're prepared for your retirement years.

Four tips to spend less money at Costco

If you've been spending more money than you'd like on your Costco hauls, you may be looking for suggestions on reducing your spending. The following tips may help you save money:

1. Make a list before you shop: It's a good idea to create a shopping list before you step foot in your local Costco club. By doing this, you can minimize impulse buys that lead to overspending. Plus, having a list may help you save time while shopping.
2. Stick with store brand items: When possible, buy Kirkland products. Many Kirkland products are well-rated and cost less than similar products from competitors. You may find they're just as good as the name-brand alternatives.
3. Use the website and app to find deals: Costco highlights current sale items and special deals on its website and mobile app. Check what's on sale so you don't miss out on money-saving promotions that could help you reduce your spending.
4. Consider upgrading your Costco membership: While an Executive Membership costs double that of a Gold Star Membership, you'll get more benefits, including earning 2% back on eligible Costco purchases. Frequent shoppers can earn a significant amount of cash back and are able to earn up to $1,000 each year.

Check out our personal finance resources for additional tips that may help you save money.