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Jim Cramer and Clark Howard Don’t See Eye To Eye on Costco - Who’s Right?

Learn what two of today's top experts say about Costco's cost savings.

By Amanda Machado , Edited by Calista Headrick

Updated Oct. 22, 2026

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If you're a long-term Costco member, you know all the best Costco hacks, from taking advantage of seasonal sales to skipping some bulk items while stocking up on others.

But this fall, American finance guru Jim Cramer expressed his disappointment in (and concerns about) Costco, which has seen its stock shares decline 9.3% in the last six months. Just a few days later, on the same channel, expert Clark Howard advised retirees to take advantage of Costco's low-cost hearing aids.

Wondering which expert to believe and whether your Costco membership is still worth it? Below, we explore both experts' comments, weigh Costco's pros and cons, and explain when Costco gives you the best bang for your buck.

Jim Cramer worries Costco can't appeal to newer generations

"Mad Money" host Jim Cramer expressed some concern about Costco's future in light of its new CEO and falling shares. During a broadcast on September 3, Cramer mused that Costco is failing to appeal to younger generations who shop online, saying that while "I like going to Costco very much, we're not seeing the reups of these people who buy their cards online. I don't want it to be a generational thing where my generation is Costco and the newer generations don't look at it like that."

Cramer also wondered out loud if dollar stores now offer more value to shoppers than Costco, though he did caution shoppers to be wary of dollar stores too. He said, "They shrink their packages, so you think you're getting a good deal."

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Clark Howard praised Costco's benefits for retirees

Just a few days after Cramer's CNBC Costco comments, radio host, writer, and consumer expert Clark Howard weighed in on Costco on CNBC as well. But Howard took a much more positive stance than Cramer, specifically calling out one product he says retirees can't afford to purchase elsewhere: hearing aids.

Howard told listeners, "You're not going to get a worse hearing aid" just because Costco charges you less. For Howard, the numbers just make sense: as his blog points out, "the average cost of a pair of hearing aids starts at $1,624.99 at Costco, nearly $1,000 less per pair than what Consumer Reports survey respondents reported paying."

Howard is skeptical of Costco's new Medicare Advantage partnership

But while Howard praised Costco's hearing aids, he's less enthusiastic about the chain's recently announced partnership with SCAN Health Plan. (SCAN, which offers Medicare Advantage plans, and Costco are co-branding certain products that will appeal specifically to retirees on Medicare.)

Howard dislikes Medicare Advantage plans in general, calling them "disadvantaged" plans instead. Explaining why shoppers should be wary of Costco's SCAN partnership, Howard said on his blog in October, "People love 'disadvantage' plans till something goes wrong with their health. And when the chips are down, they need care. And then the 'disadvantage' plan is all about denial."

How much does Costco cost?

So which analyst is right about Costco, and is your membership really worth the cost? To figure this out, we need to crunch Costco's numbers first.

Costco has two membership tiers: the Gold Star tier, which costs $65 per year, and the Executive Member tier, which costs $130 per year. Executive Members get 2% back on annual Costco purchases, up to $1,250 a year in rewards. If you spend around $271 a month (or $3,250 a year) at Costco, you'll earn enough back to offset the $65 difference between the two tiers.

(If you spend less than that per year, you should probably stick with a typical Gold Star membership.)

Where does Costco help you save?

Arguably, buying certain things at Costco can help you justify the cost of either membership tier, but you have to know what to get at Costco and what to get elsewhere. As Clark Howard pointed out, hearing aids cost substantially less at Costco.

If you're tired of spending upwards of $2,000 on hearing aids, a $65 membership — which can be used by you and one other household member — is likely worth it, even if you don't buy anything else at Costco throughout the year.

But there are a few other purchases that make more sense at Costco than anywhere else. If you're a frequent spender in any of these areas, we're guessing a Costco membership makes more sense to you than not.

Gas

Costco's gas costs an average of $0.30 less per gallon than surrounding gas stations. Long lines of members waiting to score the cheapest gas in town can put you off Costco's gas, but you'll save a few dollars every single time you fill up the car, which adds up quickly.

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Prescriptions

Costco typically has lower prescription costs for some common drugs compared to competitors like CVS and Walgreens. (For instance, a 90-day supply of over-the-counter omeprazole costs just $14.99 at Costco.)

Tires

Costco's tires are affordable on their own, but they come with perks that further offset car maintenance costs, including free installation, balancing, rotation, and flat repairs.

Optical services

Even without insurance, Costco eye exams usually cost less than $100. Members can also buy Kirkland brand glasses and contacts, which may be cheaper than comparable glasses at other stores.

Bottom line

While the math is clearly on Howard's side when it comes to hearing aids, it's still worth paying attention to Cramer's point that Costco's inability to target younger shoppers could have long-term negative consequences. Specifically, you might want to consider Cramer's warning when it comes to your investment choices, not your shopping choices.

You and your financial advisor can chat about what Costco's declining stock shares could mean for your portfolio. But if you've crunched the numbers and figured out your Costco card is helping you save money in retirement, there's no reason to give it up, especially if Costco is your go-to store for all things hearing-related.

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