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Dave Ramsey Has a Surprising Take on Shopping at Costco - And Most Members Won’t Like It

America's finance guru says buying in bulk isn't always the cheapest choice.

By Michelle Smith , Edited by Calista Headrick

Updated Sept. 14, 2026

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Costco has a well-earned reputation as one of the best places for American families to save money on groceries. If you have a membership, you probably visit the warehouse a few times a month to stock up on bulk supplies and make the cost of membership worth it.

But finance expert Dave Ramsey has a few warnings for American consumers intent on getting their money's worth from Costco. Keep reading to learn more about when one of today's best-known thrifters recommends shopping at Costco and when he recommends shopping elsewhere.

Doing the math might reveal you're spending more than you think

It's easy to assume that because you're buying bulk items at wholesale prices, you're automatically saving more money than you would buying smaller quantities of the same item at a traditional grocery store. But according to Ramsey, you can (and should!) do the math to find out which bulk items cost less at Costco, and which ones might actually cost more.

To accurately compare prices between Costco and a more traditional store, Ramsey says you need to calculate the unit price, which you do by dividing the total item price by the number of items (or the total weight). If you pay $5 for a dozen eggs at your local Kroger's, you're paying about $0.42 per egg. If you pay $20 for five dozen eggs at Costco, you're paying closer to $0.33 per egg. In this case, Costco is the cheaper choice — but you need to crunch the numbers on each item to make smart, informed decisions about which items to buy where.

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Buying things you don't need is a massive waste

Ramsey's top recommendation—for shopping at any store, not just Costco—is simple: "only buy things you know you'll use." Sure, maybe you'll save more buying a bulk box of fruit snacks at Costco than you would buying a small box at Trader Joe's, but only if you eat what you buy. Per Ramsey, "You don't want to buy in bulk just to end up with the "bulk" of it in the trash. Stick to buying things you know you or your family will eat or use."

Impulse buying is all too easy

Even in an article on the cheapest U.S. grocery stores where Costco takes sixth place, Ramsey and his team are careful to point out that Costco's affordability depends on your resistance to impulse buys. Rachel Cruze writes on the Ramsey Solutions blog, "I use my Costco membership every week thanks to all the wonderful things they offer. Be careful though—it's easy to run in for water and come out with a charcuterie board, 14-pound bag of cheese puffs, and a patio set."

Impulse buying is a side effect of many shopping trips (in another blog, Cruze points out that Americans spend around $150 per month on impulse buys). But at a warehouse, your impulse buys come in bulk, too, which means those unexpected purchases can take an even bigger bite out of your wallet.

Bulk perishables are a bad investment

Shelf-stable items make for solid warehouse buys. Toilet paper, tissues, and packaged shelf-stable foods can last for years, and having a giant supply in your spare room reduces stress and trips to the store.

According to Ramsey, though, shelf-stable items might be the only ones where your Costco membership comes in handy. Perishable foods bought in bulk go bad quickly, especially if an already-rotting piece of fruit was hidden out of sight in a massive bag. After all, a lower per-unit price doesn't matter if most of the units end up in the trash.

Smaller households might be wasting money at Costco

One size rarely fits all, and that includes warehouse size. If your massive household of hungry teens devours several gallons of milk and a dozen boxes of cereal per week, shopping at Costco is almost certainly saving you money. If you live on your own or prefer fruits and vegetables to shelf-stable snacks, your Costco membership might not be paying for itself.

Always shop with a list, at Costco or not

Ramsey recommends shopping with a list to resist impulse buys and reduce the number of trips you have to make for forgotten items. As Cruze writes for Ramsey Solutions, "The trick to saving money by buying in bulk is to have a game plan before you even walk through the door of the store." Don't deviate from your shopping list to sort through piles of clothes or new TVs stacked near the entrance (unless they're on your list, of course). Stick strictly with what you need.

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Actually track how quickly your household runs through items

Hard, cold data might help you resist the urge to overbuy. Instead of assuming you'll run out of something and buying three or four massive boxes just in case, make the effort to consistently track which food items your household zips through and which you spend weeks or months picking at.

Take the time to price compare

It's annoying to spend so much time running calculations, but once you know which items are cheapest at which stores, you'll have a pre-made shopping list ready to go depending on which store you're visiting. Just make sure to account for the occasional sale or price hike—re-running cost comparisons periodically can help ensure you're always getting the best deal.

Bottom line

Hopefully Ramsey's advice helps you get more out of your Costco membership, even if that means spending a little less time at the warehouse. But it's important to remember that while tips like buying fewer perishables might resonate with most American shoppers, it might not fit your household's model. And that's okay!

Expert advice is great, but no one knows your budget better than you do, so feel free to modify Ramsey's words of wisdom as needed.

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