Yahoo Finance 6 Ways Millennials Can Save Money at Costco
Raking in over $226 billion in sales in 2022, Costco is one of the biggest retailers in the United States.
Find: Are These 8 Costco Items With Cult Followings Worth the Hype (and Money)?
Discover: How To Save $200 on Your Grocery Bill Every Month
It’s also a popular shopping destination for many Millennials — that is, anyone born between the years of 1981 and 1996. This isn’t too surprising considering the retailer’s low prices, great deals, and large selection of products.
But even with frequent discounts and bulk buys, the retailer can still be an expensive place to shop. After all, inflation rates are still high — though they’ve been dropping. The average Millennial also earns $71,566 a year before taxes, an amount that doesn’t go quite as far as it once did.
If you’re a Millennial looking for ways to save money while shopping at Costco, here are some of the best strategies to implement starting now.
1. Choose Savings Over Convenience
Like many major retailers, Costco now offers a same-day delivery service that brings your groceries straight to your door. This is mighty convenient, especially for Millennials who are working or raising a family. But it comes at a price.
“Millennials are convenience shoppers — we are more likely to order Costco Same Day Delivery service or online for shipping if it means avoiding the hassle and hustle of shopping in a busy store with our kids,” said Melissa Cid, Consumer Savings Expert and Site Manager at MySavings.com.
“Costco Same Day delivery prices tend to be higher — this convenience ends up costing us more. Boomers are much more likely to shop in person.”
By shopping in person instead of using delivery services, you could end up saving money at Costco. Just be sure to account for things like gas and travel times.
Hidden Gems: Affordable Luxury Goods at Aldi
2. Make a Grocery List
If you’re a Millennial trying to save money, make a shopping list before you go to Costco or any other major store.
A shopping list is a great tool that helps you keep track of what you want to purchase, prevents impulsive purchases, and makes it easier to stick to a budget.
“Effective shopping is mindful shopping, especially at a massive store like Costco,” said Scott Lieberman, Founder of TouchdownMoney.com.
“If you let your eyes wander off towards those shiny electronics and fun-looking clothes, you’ll blow a hole in your budget in no time. So, my advice is to create a shopping list ahead of time, and then make a bee-line towards the things you actually need.”
3. Be mindful of bulk deals
According to the Pew Research Center, roughly 30% of Millennials live with a spouse and at least one child. Because of this, the idea of buying groceries in bulk can seem especially appealing as it can fill the kitchen pantry (and refrigerator) and cut down on shopping trips.
But while buying in bulk can be an effective cost-saving measure, it can also lead to a lot of wasted food and money if you’re not careful. That’s why it’s important to make bulk buys mindfully.
“If you’re shopping for a one- or two-person household, you may be tempted by bulk deals for things like bags of chips and granola bars — but be cautious when it comes to items with shorter expiration dates such as dairy products, meat and deli products, or desserts,” said Samantha Landau, Consumer Expert at TopCashback.
“Be sure to assess whether or not you’ll consume the product before it expires. In cases like these, just because something costs less per unit doesn’t mean you won’t be paying more for it in the long run when you have to throw it out.”
While you’re at it, consider the cost per unit when buying in bulk.
“Stocking up on products may seem like the cheaper option, but that’s not always the case,” added Landau. “Look at the cost per unit to determine if it’s worth buying larger quantities that you’ll actually use. You can do this by dividing the total cost of the product by the number of items it contains.
“You’ll also want to compare this with other stores you regularly shop at to see where you’re getting the best deal.”
4. Be Wary When Shopping Online
When it comes to marketing and getting your dollar, Costco is incredibly savvy. The store is set up in such a way that encourages impulse buys.
This isn’t just limited to in-person shopping either. The online shopping option is also designed to get people to purchase things they don’t necessarily need — a major issue for Millennials who primarily shop online.
“Costco’s same-day delivery service, offered through Instacart, is a great way for busy, overworked people to keep the fridge stocked,” said Lieberman.
“But the marketers at Costco are crafty, and so they show you what’s ‘trending’ when you shop online. Remember — it doesn’t matter what’s trending! You don’t need to ‘discover’ new products — that’s what dinner parties are for! Just get in, buy what you need, and get out — like a digital ninja.”
5. Learn Costco’s Sales Patterns
Like many major retailers, Costco has specific patterns when it comes to offering deals and discounts. So, if you’re a Millennial trying to cut costs, it’s a good idea to learn what some of these are.
“Pay attention to the Costco sale patterns and jump on board when it’s a product you need. Buy items like paper products and detergent when they go on sale and you’ll find that once you are getting close to running out the sale will be back again in time to replenish,” said Cid.
“Keep an eye out [for] prices ending in .97 — these are markdown clearance prices set by the store and website to get rid of remaining stock,” Cid added. “Seasonal items always go on clearance, especially clothes, home goods, and decor.”
6. Use Cash-Back Opportunities
Savvy Millennials use cash-back when shopping to save money. This can be in the form of a credit card, a debit card or a cash-back app.
Even better, cash-back isn’t only limited to just online and in-person purchases.
“Shopping at warehouse clubs can help you score great discounts, but access to them comes with a price. Before signing up for a membership at Costco, look to save on your annual fee with a cash back site, like TopCashback,” said Landau.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 6 Ways Millennials Can Save Money at Costco
