Is a Costco Executive Membership Worth It When You’re Single?

When I first joined Costco many years ago, it was just me, my husband, and our little dog sharing a household. Back then, a basic Costco membership was more than enough for us. Sure, we shopped at Costco occasionally. But did we buy the majority of our food in bulk? No. Back then, it just didn't make sense.

But ever since having kids, I've paid for an upgrade to a Costco executive membership. Although the cost is higher, it's more than worth it to me because that executive membership gives me 2% back on all Costco purchases. And based on what I spend, that's a lot of cash back on a yearly basis.

But what if you don't have kids -- or even a partner, for that matter? In many cases, a Costco executive membership could make sense if you're single. But you'll need to assess your personal Costco spending and run the numbers to find out.

$3,000 is the magic number

The primary benefit of upgrading to a Costco executive membership is getting 2% back on your purchases both in stores and online. But if you're single, you may not spend enough at Costco to make the extra cost of an executive membership worth it.

See, a basic Costco membership only costs $60 a year. The cost of an executive membership is double that -- $120. So to see if an executive membership makes sense, you need to figure out if you expect to spend $3,000 or more at Costco per year.

Why is $3,000 the magic number? It's simple. At 2% back, $3,000 in spending allows you to break even on the extra $60 you're paying for an executive membership. So if you spend even a $1 more than that at Costco on a yearly basis, you come out ahead financially.

Many single people do not spend $3,000 a year on Costco purchases. But before you make your choice, comb through your credit card statements from the past year and see how much Costco spending you did. If you racked up $3,000 or more in charges, then the upgrade could make sense.

You need to buy in bulk carefully when you're single

Single people who live alone can still benefit from shopping at Costco and buying items in bulk. Toilet paper, for example, is not the sort of thing that goes bad. So if you have a home with a lot of storage space, that's an item it could pay to buy at Costco in bulk.

Similarly, let's say you eat a protein bar for breakfast every morning. Buying protein bars in bulk at Costco could save you money compared to what you'd spend at a regular grocery store. And since protein bars might easily have a shelf life of two months, three months, or longer, if you eat one every day, then a bulk pack of 30 is probably a pretty safe bet.

Rather, it's perishable items you need to be careful about when buying in bulk. If you don't have anyone to help you consume your haul, you might end up throwing a lot of that food away -- and throwing your money away as a result.

All told, being single does not automatically mean you shouldn't upgrade to a Costco executive membership. Just make sure to run the numbers before shelling out the extra cash.