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Dave Ramsey Says One Costco Habit Could Quietly Cost You $108,000

Ramsey's easy Costco rules to help shoppers avoid costly impulse purchases.

By Calista Headrick , Edited by Amanda Machado

Updated Aug. 31, 2026

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Costco has earned a reputation for helping shoppers save money. Buying toilet paper, paper towels, groceries, and other household staples in larger quantities are great Costco hacks to lower the cost per item. But warehouse shopping also has the temptation to spend more simply because something looks like a bargain.

That is where Dave Ramsey's warning about impulse spending becomes relevant. Ramsey Solutions estimates that Americans spend about $150 per month on impulse purchases, or approximately $1,800 annually. Over a lifetime, that adds up to an estimated $108,000. The figure is not specifically tied to Costco, but the warehouse club's ever-changing merchandise creates plenty of opportunities for unplanned spending. Ramsey's solution is simply to make a plan before shopping, compare prices by unit, and only buy bulk quantities that the household actually uses.

Editor's note: Prices and availability vary by location and may change over time. The $108,000 figure is based on Ramsey Solutions' estimate of average lifetime impulse spending.

The $108,000 impulse-buying habit

An extra snack, kitchen gadget, or seasonal purchase might not seem like a big purchase when it happens. The concern comes from repetition. Small purchases that happen every week or month eventually become a big expense, especially when they are not included in the household budget.

For people approaching retirement, money spent on unnecessary purchases is money that is not available for savings, debt payments, or everyday expenses. Ramsey's point is not necessarily to eliminate every spontaneous purchase, but to recognize when an unexpected deal is encouraging spending that otherwise would not happen.

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Have a game plan before shopping

One of Ramsey's most useful suggestions is to have a "game plan" before walking into a store. That advice is especially important at Costco, where shoppers are regularly exposed to merchandise outside the grocery aisles.

A written shopping list and a predetermined spending limit create useful guardrails. Ramsey also suggests leaving room for a couple of planned fun purchases rather than treating every tempting item as something worth buying. That approach allows shoppers to enjoy the warehouse experience without letting every unexpected deal expand the grocery bill.

Check the price per unit

Bulk packaging creates another potential problem because shoppers often assume that bigger automatically means cheaper. Ramsey recommends doing the math instead. Divide the package price by the number of ounces, pounds, servings, or individual items and compare that figure with other stores.

Sometimes Costco genuinely offers better value. Other times, a supermarket sale or smaller package is a competitive price. Unit pricing also helps to see whether buying a huge quantity makes financial sense for a particular household.

Paper products and toiletries

Paper towels and toilet paper are among the more sensible bulk purchases at Costco because most households use them regularly and they generally store well. Ramsey's bulk-buying guidance also points to toiletries and dental-care products as reasonable buys.

The important consideration is household consumption. A large package of shampoo, toothpaste or paper products may be a good deal when it gets used before another purchase is necessary. For an empty-nester household, however, the biggest package is not automatically the smartest option.

Batteries and cereal

Batteries also make Ramsey's list of products that may be worth buying in bulk. They are relatively easy to store and are useful for household devices, flashlights, and other everyday items.

Cereal is another potential bulk-buying winner, particularly when a household regularly eats the same variety. The key is to buy cereal you know that you like. Buying several boxes because they look interesting is more risky than stocking up on a favorite that the family already knows it will consume.

Canned goods, rice, and beans

Canned goods, rice, and dry beans round out several of Ramsey's recommended bulk-buying staples. Their relatively long shelf lives make them easier to store than many fresh foods, while their versatility gives them a regular place in many kitchens.

Still, shoppers should consider storage space and consumption habits. Someone who frequently cooks rice or uses canned vegetables may benefit from a larger package. Someone who rarely reaches for those foods may just end up with a crowded pantry.

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Be careful with perishables

Fresh foods are a different challenge. Fruits, vegetables, and dairy products are inexpensive when purchased in large quantities at Costco, but the savings disappear if some of the food spoils before it gets eaten.

This is especially important for smaller households. A family of four could work through a large package of produce quickly, while a retired couple might struggle to finish it. Paying a little more for a smaller quantity may sometimes be better than throwing unused food away.

Ask yourself two questions

Ramsey's core test for bulk shopping is to ask shoppers if the product lasts and if they are going to use it. If the answer to either question is no, the item deserves another look before it goes into the cart.

It is also worth asking if additional Costco purchases are in the budget. A discounted $25 purchase is still $25 of spending if it was never planned. For households living on a fixed retirement income, that distinction may matter more than the size of the advertised discount.

Bottom line

Costco itself is not necessarily the problem. Bulk shopping is a great way to save on groceries and household items when shoppers choose products they regularly use and compare prices carefully. The bigger danger is allowing the warehouse's bargain-focused environment to turn a planned shopping trip into an expensive one.

Ramsey's estimated $108,000 lifetime impulse-spending figure puts those small purchases into perspective. The most useful Costco habit is simply not buying something merely because it is a deal. If it is needed, fits the budget, and offers a competitive price per unit, it deserves consideration. If not, leave it on the shelf.

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