Should You Use Your SNAP Benefits at Costco?

You're allowed to use your SNAP benefits at Costco, but the question is, do you want to? Only you can determine whether your SNAP dollars will go further at Costco than at another area store. Here, we break down three things you should consider before using SNAP benefits. 

Balancing membership fees

Costco accepts payments via Supplemental Nutrition Assistance Program (SNAP) benefits. But first, you'll need to be a club member. Currently, the least expensive annual membership is $60, but you can pay for a Costco membership using SNAP benefits. 

While you may not be able to pay directly using benefits, you can use your EBT (Electronic Benefit Transfer) card to purchase a Costco Shop Card, then use the cash card to pay for a membership. 

Given that SNAP benefits per person average about $182 per month, whether you'll want to purchase a membership may hinge on these three questions.

1. How large is your household?

If you're single without dependents, you probably receive somewhere around $182 monthly in SNAP benefits. Whether it's a bit more or a bit less, you'll need to determine whether you can save enough at Costco to make up for the $60 you'll spend on an annual membership.  

Of course, the larger your household, the larger the SNAP benefit. If you have a family of four and receive $728 in SNAP benefits monthly, a Costco membership may make sense, but only if the annual savings surpasses the cost of becoming a member. 

2. Will you buy in bulk?

And that leads to the question: Do you plan on buying in bulk? And if you buy in bulk, does your family need a 20-pound bag of rice, or will some of it go to waste? 

Insider tip: Buying in bulk only makes sense when the per unit price is lower than you can find at another store. All Costco members owe it to themselves to do a little comparison shopping before heading to the store, and that's especially true if your monthly budget doesn't have much wiggle room. 

3. Can you find a better deal elsewhere? 

The goal is to have an emergency savings fund and a little money to save each month. Costco may be the retailer that does that for you, or you may be better off shopping at a store that doesn't charge a membership fee. It only took a few moments of comparison shopping to identify examples of when Walmart would have provided more bang for your buck:

Items you can (and cannot) purchase using SNAP benefits

Keep in mind that SNAP benefits cannot be used to buy absolutely everything your household might need and want. 

Covered by SNAP

• Meat, poultry, and fish
• Fruits and vegetables
• Dairy products
• Breads
• Cereals
• Snack foods and non-alcoholic beverages
• Seeds and plants that produce food for the household

Not covered by SNAP

• Beer, wine, and liquor
• Cigarettes or tobacco products
• Live animals, except shellfish, fish removed from water, and animals slaughtered prior to store pick-up
• Vitamins, supplements, and medicines. 
• Foods that are hot at the point of sale
• Non-food items, including pet food, paper products, cleaning supplies, hygiene items, cosmetics. 

Ultimately, the decision is yours. If you're not quite sure whether a Costco membership is right for you, ask a friend or family member if you can tag along the next time they visit the warehouse club. Think about how you currently shop and what you normally buy. Then, take a look around to get a better idea of whether Costco can help you save money.