Why I'm Not Worried About a Costco Membership Fee Hike

June of 2023 will mark a big milestone for Costco: the sixth anniversary since the warehouse club giant's last membership fee hike. Because Costco usually raises its membership fees roughly once every 5.5 years, many members are convinced that they'll be hit with a fee increase at some point this year. And during the company's most recent earnings call, Costco CFO Richard Galanti said that when it comes to raising membership fees, "it's a question of when, not if."

At a time when inflation is making everything so expensive, the idea of having to pay more for a Costco membership may not sit well with you. But here's why the notion of paying more isn't making me lose any sleep.

Any fee hike that hits will likely be modest

These days, many people are racking up higher credit card tabs than ever to put food on the table. And I'm part of that statistic. As such, I'd really love to not have to spend extra money in the course of feeding my family.

But given how expensive groceries have gotten, I'm really not going to sweat a Costco fee hike. First of all, if the cost of a membership increases, it's likely to be a minimal uptick.

Right now, a basic Costco membership costs $60 a year, and an executive membership costs $120. I happen to have the latter. If fees go up this year, members will probably be looking at paying $65 and $130, respectively. That's because the last time Costco raised fees, the basic membership increased by $5 and the executive membership rose by $10.

And based on my current spending, an extra $10 a year isn't going to get in the way of my savings goals or make it so I can't pay an essential bill. And while I certainly recognize this isn't the case universally, I suspect many Costco members are in a similar boat.

My fees are what help save me money

Costco has said repeatedly that it uses the revenue it generates from its membership fees to help offset other costs and offer shoppers a wide array of products at affordable prices. So the way I see it, a higher membership fee is an investment in my ability to procure low-cost groceries and household essentials.

As it is, my Costco membership more than pays for itself, saving me hundreds of dollars a year on food costs alone. If I need to spend an extra $10 a year to be able to save several hundred, so be it.

Let's be clear -- there's nothing wrong with not wanting the price of your Costco membership to increase. These days, many people are barely scraping by due to inflation, and an extra $5 or $10 in annual spending might be a burden at a time when you're struggling to keep a roof over your head.

But if you're not in dire financial straits, then don't get worked up over a Costco fee hike. Chances are, it won't impact your finances all that much, and you might more than make up for that extra money in the form of savings throughout the year.