Should You Cancel Your Costco Membership in 2024?

Millions of Americans have a Costco membership. For some, making regular trips to their nearest warehouse store saves money. But what about those who aren't getting their money's worth? If you see yourself in any of the following four situations, it may be time to consider whether a Costco membership is working for you and your finances.

When you can no longer justify bulk buying

My boys are close in age, and both left for college within 2 years of each other. I was accustomed to making meals for our boys and a regular crowd of their friends. Warehouse shopping made sense, given the number of people I fed.

When it was just my husband and me, I no longer needed to buy huge quantities of anything. Honestly, it took me quite a while to get used to the change. I overbought more often than I'd like to admit, telling myself I wanted plenty in the freezer when the boys came home to visit.

After letting a shameful amount of food expire and go to waste, I finally started shopping for two. To this day, as I walk through Costco, I have to remind myself how bad I feel when I throw food away when I don't get around to using it.

According to Feeding America, Americans toss over $444 billion worth of food each year. That equals 149 billion meals that could have been served to those in need. I don't tell you this to make you feel bad. I've been as guilty (or more) of food waste as just about anyone I know. I'm not sure how much of that waste I'm responsible for, but it makes me slightly ill to think of the extra money that could have gone into a savings account rather than tossed into a dumpster.

However, if you're buying in bulk when you don't need to, it's an easy fix. You can always skip aisles selling bulk items. Or you can consider whether your Costco membership is still working for you.

When a trip to Costco feels like a cross-country trek

With 600 Costco warehouses spread out across 47 states, it's fair to say that millions of shoppers have easy access. However, if you live an hour or more away from your nearest Costco, it may be time to reassess whether you're saving enough money to justify the annual expense.

Determine how much you estimate you're saving each year by visiting your nearest Costco. Is it much more than you would save by shopping sales at local grocery and department stores? If you're not sure what those savings may look like, free shopping apps can give you an idea.

You'll also want to determine how much you're spending on gas before making a final determination.

When you count on sharing your membership

If you've been sharing your Costco membership with extended family members, you've likely noticed that the retailer is clamping down on the practice. The Costco website states, "The Costco membership card is non-transferable, but there are several ways to share the experience with family and friends."

Here's what that means: Members are allowed to bring up to two guests with them when they visit the warehouse. However, those guests are not allowed to make purchases. All purchases must be made by the Costco member.

The guest policy has not changed. What's different is that Costco has recently turned its attention to ensuring that all purchases are made by Costco members. To that end, some store employees use spot-checks to ask shoppers for photo IDs. And, according to an email from Costco to the Dallas Morning News, stores are now asking to see membership cards with photos at self-service checkout registers.

Gone are the days of sharing a single membership with extended family members and friends. If the ability to share the membership is one of the reasons you've held on to it, now is the time to reassess.

When you're overspending

Who among us has not strolled through a Costco store, stopped to look at an item they absolutely could have lived without, and carried it to the checkout line? One thing that makes Costco so much fun is looking through the new merchandise. However, if you're hoping to stick with a budget, buying unnecessary things is sure to put a dent in your checking account.

You know those samples Costco is famous for offering, the ones that make you want to circle around more than once? There's a good reason they're offered. A study by Arbitron and Edison Media Research found that 35% of customers who try a sample will buy the sampled product on the same shopping trip. Sampling removes the risk of making a purchase they may not end up liking.

Sampling is a great marketing tool, but it may not be good for your bottom line.

When it's time to cancel

Costco makes several things easy: paying for a membership, making returns, and canceling your membership. Costco is not one of those companies that makes customers jump through hoops to cancel their membership. If you decide that your Costco membership is no longer working out for you, you have two easy options.

1. Visit the membership counter at any Costco warehouse and receive an immediate refund.
2. Call the Costco Member Services Center at 800-774-2678.

One thing we know for sure about life is that circumstances change. If a Costco membership once made sense for you but no longer provides the value you desire, it's okay to cancel. You can always renew your membership if the situation changes again.