What It Really Costs To Split a Costco Membership With Friends
Splitting the cost of a Costco membership with friends can help you save money. But are the potential issues that come with it worth the savings?
Costco memberships come with rules about who can use the card, and if one person doesn’t pay, it could create an awkward situation. Here’s what it really costs to split a Costco membership with friends.
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Can You Split a Costco Membership With Friends?
It’s possible to split a Costco membership with friends, but there are rules.
According to Costco, membership cards are nontransferable, and members must have their cards when shopping. This means a friend can’t borrow your card to shop.
Members can bring up to two guests per visit; however, purchasing items is exclusive to Costco members. And if you and your friends live in the same home, then you can get an additional free household card for one friend.
What a Costco Membership Costs
Costco offers two membership tiers. The standard Gold Star membership costs $65 per year, while the Executive membership costs $130 per year and includes extra perks, such as early shopping hours and a $10 monthly credit on same-day delivery, according to Costco.
If you split a membership with a friend, this may cost you only $32.50 for the Gold Star membership or $65 for the Executive membership. And if you sign up during a promotion, Costco typically offers a digital shop card, which can help lower or eliminate the total cost for the year.
The Potential Risks
Splitting your membership with friends could help save money, but there are some risks.
The most obvious is that your friend or friends don’t pay their portion of the membership, which would leave you covering the entire cost at renewal.
Another potential concern is that while you can bring two friends when you visit a Costco warehouse, you would have to pay for all of their purchases at checkout under your membership. This also means you have to trust that they’d pay you back for their purchase. And if they don’t pay, this turns into a personal money issue between you and your friend.
Costco also tightened its membership checks a few years ago. To stop friends from using someone else’s membership card to access the warehouse, Costco added membership scanning devices at the entrance door, Good Morning America reported. When you shop, you have to scan your card at the door by holding the barcode or QR code up to the scanner.
One friend may use the membership every week for groceries, gas or household items, while another may only use it occasionally. If you split the cost evenly, the person who shops less may not get the same value. Also, if you have an Executive membership, there could be a conflict over the rewards. When one person receives the annual reward or uses most of the benefits, it may not feel like an equal arrangement.
Is Splitting a Costco Membership Worth It?
Splitting a Costco membership may work best for people who live in the same household, shop together often and already share expenses.
For friends who live separately or want to shop independently, the savings may not be worth it.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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