Here's Why I Won't Get Upset if Costco Hikes Fees in 2024

These days, a lot of people are trying to recover financially from the rampant inflation that took hold in 2022. As such, many folks are tired of seeing their bills go up.

One expense of yours that has the potential to rise at some point is your Costco membership. Right now, the cost of a basic membership is $60 a year, while an Executive membership costs $120. I pay for the latter membership because it gives me 2% cash back on my Costco purchases.

Since it's been a really long time since Costco has raised the cost of a membership, I'm expecting those fees to go up at some point in the not-so-distant future. And while Costco CFO Richard Galanti recently confirmed that the company has no specific plans to increase membership costs, he maintained that fees are apt to increase at some point.

What's more, Galanti is set to depart as CFO this year. And sometimes, with new management can come new changes. So while a 2024 Costco membership fee hike is by no means a given, I personally would not be shocked if it were to happen.

But I also won't get upset if Costco raises its fees, whether that happens this year or in the future. Here's why.

A membership will still be worth it to me

Although it's only March, I've already seen a few of my bills increase since the start of 2024. So if Costco were to join that mix, I'd accept it without getting upset.

The reason? Some of my personal bills have increased this year after also going up last year. Costco, on the other hand, hasn't raised membership fees since 2017. So if, seven years later, Costco's management team decides that an increase is called for, who am I to complain?

Plus, even if Costco's fees do go up a bit, I can't imagine a scenario where paying for a membership won't still be worth it for me.

Let's say the cost of a basic membership rises $5 and the cost of an Executive membership rises $10, which is in line with Costco's most recent fee hike. That means I'm looking at $130 a year for my Executive membership instead of $120.

But I can say with confidence that shopping at Costco easily saves me $20 a week on groceries and other household expenses, if not more. Multiply that by 50 weeks, and I'm saving $1,000 or more compared to sticking to a regular supermarket.

It doesn't matter to me whether I pay $120 versus $130. Heck, even if Costco were to raise the cost of my membership to $150, I'd still happily fork over that money.

Plus, because I shop at Costco so often with my Executive membership, I'm actually able to score enough cash back to cover my fee in full. And I'd be able to do so even if it were a bit higher.

Don't rush to give up your membership if Costco fees rise

At this point, you may be sick and tired of things getting more expensive in your life. And who could blame you?

But Costco is likely to raise fees at some point. Once that happens, don't rush to cancel your membership. Instead, think about the value it offers you and the savings it provides you with. Chances are, you can easily justify the incremental cost.