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APRIL 2023

Get top marks in financial aid

Have you always wanted to get your degree? Would vocational training prepare you for work you’ve always wanted to do? Are you hoping to send your kids to college?

According to U.S. News & World Report, the average cost of tuition and fees for the 2022–2023 school year is $39,723 at private colleges, $22,953 for out-of-state students at public colleges and $10,423 for in-state residents at public colleges.1 But financial help is available. Get started by taking the five steps below.

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Step 1: Look for “free” money first.

First, try to get “free” financial aid (the kind you don’t have to repay). Scholarships are an attractive type of aid because they do not have to be repaid and many are not based on financial need. They may be awarded to students who have excelled in specific academic areas, or specialty areas such as music or sports. Thousands of private scholarships are available through various companies, organizations, private foundations and clubs. Information may be found online at numerous sites, including fastweb.com or Scholarships.com. Comprehensive guides are published and updated each year on specific scholarships, eligibility criteria, etc., such as the College Board Scholarship Handbook or Peterson’s Scholarships, Grants and Prizes.

Costco is making college more affordable for employees

The Costco Employee Scholarship is available in amounts up to $2,500 per academic year for up to four years for eligible Costco employees.

To be considered for the Costco Employee Scholarship, applicants must:

  • Be a regular part-time or full-time Costco Wholesale Employee residing in the United States (College Retention employees are eligible to apply).
  • Be enrolled or planning to enroll in an accredited U.S. college or university.
  • Have a high school diploma or equivalent by June 2023.
  • Plan to pursue a 2-year or 4-year undergraduate degree or certificate at a nonprofit, accredited college or university in the United States starting fall 2024
  • Not have obtained a bachelor’s degree at this time.

Learn more about the Costco Employee Scholarship, including the application timeline. To check your eligibility, call 877-655-4097.

Free financial aid usually doesn’t cover 100% of your costs. So you may need to find other ways to pay for college or vocational school, including taking out low-cost loans and using any money you may have saved.

To apply for any financial aid, you’ll need to complete the FAFSA® form. This is the financial aid application used by the federal government and most colleges and universities. If you list more than one college on your FAFSA, you’ll receive a financial aid offer from each of those schools. These offers will likely contain a combination of free aid and low-cost loans. Review each school’s financial aid offer carefully.

Step 2: Know your deadlines.

Financial aid deadlines are specific to your situation — your school, where you live, what you study.

  • The FAFSA deadline is the most important deadline you should know. Check the FAFSA deadlines.
  • Deadlines for aid from your state, school and private sources tend to be earlier than those for federal aid.

Make sure you have some way to keep track of all your deadlines. For example, write important dates on a calendar, or track them on your smartphone.

Step 3: Fill out the FAFSA.

You must complete the FAFSA every year to qualify for:

  • Federal and most state grants, scholarships, low-cost student loans, and work-study programs
  • State programs
  • Many school-based financial aid programs

The FAFSA is your ticket to financial aid. Check the FAFSA deadlines.

Step 4: Compare schools’ financial aid offers carefully.

How schools determine your financial aid

The schools that you list on your FAFSA receive a Student Aid Report (SAR), which details your FAFSA results. The SAR reports your expected family contribution (EFC).

Here’s how it works:

  • Each school uses your EFC to calculate your financial need. This determines your eligibility for financial aid.

Then each school creates your financial aid offer, which can contain federal, state and institutional grants, scholarships, work-study, low-cost loans, and other aid.

Understand what you have received.

Your financial aid offers will differ from school to school. This is based on differences in the cost of attendance, available aid and school-specific criteria for awarding certain types of aid.

When comparing your financial aid offers, consider the following:

  • Calculate the percentage of the offer that is “free” money. You don’t have to repay free money if you continue to meet all the obligations. So the more free money you get, the better.
  • Compare “apples to apples” when it comes to the actual cost of attending each school. The actual cost encompasses more than just tuition; it includes books, meals, housing and more.
  • Make sure you understand the long-term responsibilities associated with each financial aid offer, and choose the most appropriate offer for your situation:
    • Does your financial aid offer contain any grants that may become loans and require repayment?
    • Will you or your child have time for a work-study job?
    • Are you or your child prepared to pay back any educational loans?

Step 5: Be sure you have the money you need.

Once you’ve received your financial aid award, you need to make sure you have enough money to cover all your education costs.

Know your education costs
  • Direct costs — Costs associated with attending school that are included in your award letter:
    • Tuition/fees
    • Room/board (institutionally owned housing)
    • Meal plan
    • Books and supplies
    • Miscellaneous personal expenses, as determined by the school
    • Parking
    • Transportation
  • Indirect costs — Additional costs that may require money beyond what’s allotted in your award letter:
    • Off-campus housing
    • Food not purchased through a meal plan
    • Medical coverage
Be smart about borrowing

What should you do if you have exhausted all sources of funding, including scholarships, grants and low-cost federal loans, and you still have college costs to cover? First, contact your school’s financial aid office. Your school may offer payment plans that let you distribute your payments throughout the year.

Consider private education loans only as a last resort. Private education loans often have higher interest rates, more fees and less flexible repayment options than federal loans do.

  • Be sure you have exhausted all other financial aid options before applying for a private education loan.
  • Borrow only what you need to cover your costs, not what you are eligible to receive.
  • Understand the terms of the loan before you agree to (and sign) anything.
  • Find out if you can defer payments while in school or get a lower interest rate with a co-signer.

1U.S. News & World Report. See the average college tuition in 2022–2023.

Sources: Pennsylvania Higher Education Assistance Agency (PHEAA). 5 steps to financial aid.
Resources For Living (RFL®)*. Financing college: grants, loans and scholarships.

*Resources For Living is available to all employees and members of their household, including children up to age 26 living away from home.

If you or a member of your household is interested in pursuing a college education or vocational training, the following resources can help you discover ways to pay for it. These resources are confidential and available to you at no extra cost.

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APRIL 2023

Why do you need a beneficiary?

When someone dies without naming a beneficiary — or leaving a will — their loved ones inherit a legal tangle. But what exactly is a beneficiary? Are there special rules for choosing one? And when do you need to name a beneficiary?

Doing the right thing for yourself and your family can be confusing — but it doesn’t have to be. Here’s what you need to know to choose your beneficiary, or beneficiaries, with confidence.

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What is a beneficiary?

A beneficiary is a person or organization you choose to inherit your wealth when you die. Your wealth can include your home, investments, cars and other possessions, from antiques to baseball cards. You name beneficiaries in a legal document — such as a will, trust, life insurance policy, annuity or retirement account.

Here are some examples of the people and organizations you can name as your beneficiary:

  • A person (or multiple people)
  • The trustee of a trust you’ve set up
  • A charity or nonprofit
  • A minor (child under 18 years of age)
  • Your estate (in the case of a life insurance policy)

Why you need a beneficiary.

You work hard for your money. And you want to know your family will be secure financially when you’re gone. That’s the most important reason you need to name a beneficiary — or beneficiaries: to make sure your wealth ends up in your loved ones’ hands. Here are some others:

  • Clarity — Grief is stressful. When things aren’t clear, the confusion can result in family strife and resentment. Naming beneficiaries makes your wishes crystal clear. And in most cases, legally protected. It also keeps the peace among your relatives.
  • Speed — When you name beneficiaries in your will, a lot of your estate — the money, property and possessions you leave behind — will bypass probate altogether. (Probate is a court that proves a will is valid.) That means your family will get their funds faster and won’t spend a lot of time in probate court.
  • Control — When you name beneficiaries in a will or life insurance policy, you control where your money and possessions go — and who gets it. If you don’t name one, the state you live in (California, for example) determines how your assets will be distributed to your heirs. Depending on the state you live in, that might even include ex-spouses!

When do you name a beneficiary?

You name a beneficiary for almost anything dealing with your money, including:

  • Life Insurance policies, including Costco’s Life Insurance and Accidental Death & Dismemberment available to all Costco Employees enrolled in the medical plan
  • Retirement accounts, including Costco’s Retirement Plan available to most Costco Employees
  • Your last will and testament
  • Social Security disability (in some cases)
  • Savings accounts and checking accounts

You can name any person or organization you want as a beneficiary. However, remember that if you name a minor child, and you pass away while they’re still a minor, the payout is sent in their name to the legal guardian of the minor child’s estate. And if you haven’t already named a legal guardian in your will, a probate court will appoint one for you.

Types of beneficiaries

There are two common types of beneficiaries: primary and secondary.

  • A primary beneficiary is the person (or people or organizations) you name to receive your cash, property and possessions when you die.
  • A secondary beneficiary is second in line to receive your assets in case the primary beneficiary passes away.

Naming alternate beneficiaries in your will is a simple way to avoid problems and confusion. It might seem trivial, but the consequences of skipping this step can be painful. For example, if your primary beneficiary is unable to receive your assets, and you didn’t name an alternate beneficiary, your assets will go back to your estate and go through probate.

How to choose your beneficiary

When choosing a beneficiary, you need to think about the people who depend on you financially. If you’re married, you’d likely choose your spouse as the primary beneficiary, and your spouse would choose you. (Yes, your spouse needs a will, too!) Together, you would name primary and secondary beneficiaries — in case something happens to both of you.

Keep in mind, people outside your immediate family may also depend on you. Do you help your parents pay their medical bills? Did you agree to pay for your niece’s education? Since you can name more than one beneficiary, you can specify what (and how much) each of these people would receive when you die. That way, those who depend on you can still count on your financial support.

Here are some questions to answer as you choose a beneficiary:

  • Who depends on your financial help? Make sure they’re included as a beneficiary.
  • If you have children who are minors, who will be the trustee of their money until they turn 18?
  • Will you set any conditions on when your children can receive your assets, for example, when they graduate from college, turn 25, pay off any debt they have, etc.?
  • Do you want any assets to remain in the family, for example, heirlooms, property, etc.?
  • Remember, if you divorce, your beneficiary isn’t automatically changed. You have to take care of choosing a new beneficiary and changing your documents.

Remember, if you divorce, your beneficiary isn’t automatically changed. You will need to designate a new beneficiary after your divorce is finalized.

Don’t leave your loved ones stranded!

Naming a beneficiary in your will might sound like a huge, time-consuming action, but it’s not! And when you do, you can breathe easier knowing you’ve taken the steps to protect your assets and spared your family unnecessary conflict and stress. Your loved ones will be grateful.

Source: Ramsey Solutions. What is a beneficiary?

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FEBRUARY 2023

Saving for your kids’ college education

A NerdWallet survey found that 1 in 5 parents of children under age 18 haven’t started saving for their children’s college education but want to. If you’re a parent who knows you need to start building your child’s college education fund but haven’t gotten started yet, here’s how to begin.

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Consider opening a tax-advantaged account

529 account

When choosing an account for college savings, look into tax-advantaged options. One such option is a 529 account, which is specifically designed to save for education expenses. A 529 account allows your savings to grow tax-free, and some states even offer a tax deduction on your contributions.

The downside of a 529 account is that if you withdraw funds for anything other than qualified education expenses, you’ll be penalized. There’s also the risk that you won’t need the funds for education at all – though you can change a 529 beneficiary to another family member or even yourself for qualified education expenses if your child decides not to go to college. There are also limited investment options with a 529.

Roth IRA

Another savings option is a Roth IRA, which is traditionally used as a retirement account, with earnings that grow tax-free. Contributions to a Roth IRA are limited to $6,500 a year — $7,500 if age 50 or older — for the 2023 tax year.1 There are also income restrictions and contributions which can’t exceed earned income. So, unless your child earns money, you’ll have to use your own Roth IRA to save for your kids’ college education.

Contributions to a Roth IRA can be withdrawn at any time, but earnings are usually subject to a penalty if you withdraw them before you turn 59 ½ years of age. If you made the first contribution to your Roth IRA at least five years before, you could also withdraw the growth for qualified education expenses. The benefit of using a Roth IRA over a 529 account is flexibility. If your child doesn’t go to college, you can leave the savings in the Roth IRA for your retirement. Also, you have more investment options.

Start saving consistently, no matter how much

The average tuition cost at a public four-year in-state university is $9,377 in 2022-23, according to the Education Data Initiative. (The average tuition at a four-year private, non-profit college is $54,501.) If your child is young, this will likely be much higher when they’re ready for college. Costs will be higher still if they don’t live at home and need to pay for room and board.

While teens are thinking about getting into their “dream school”, they may not be thinking about what the student loan debt will do to their lives in 20 or 30 years. According to Dave Ramsey of Ramsey Solutions, student loan debt has become part of culture and is accepted as a normal part of life. The financial loan crisis, which is also referred to as a “Borrowed Future”, is drawing national attention and negatively affecting people and our economy.

While earning a college education isn’t everyone’s dream, it can be overwhelming to think about how much your child will need to pay for college, but the best thing you can give your money is time to grow. That means putting some money away on a regular basis, even if it feels like a drop in the bucket, and starting as soon as possible.

Let’s say you deposit an initial $200, then save $50 per month from birth through age 18. By the end of that time, you’ve contributed $11,000, but when you include modest investment returns of 5%, you’ll have $18,025 saved. That may not be enough to cover four years of college, but it can make an impact. And that’s assuming your savings rate doesn’t increase.

You can use an investment return calculator to see how college savings can grow over time.

Make a plan for extra money in your budget

Over time, you’ll probably find extra money in your budget that could boost college savings, like a tax refund or merit raise. Child care costs will also likely diminish or go away as your child ages, lowering your fixed expenses. Plan early to use some of these funds to save more for college.

Perhaps you want to put one-quarter of any windfall into college savings, or you decide to reallocate funds that previously went toward child care into their 529 account. The details don’t matter, but you’ll want to make these plans before the money is in hand. Otherwise, extra funds have a way of allocating themselves.

Don’t compromise your retirement for college savings

The NerdWallet survey also found that nearly 3 in 10 parents of children under 18 who have personal student loan debt (29%) prioritize saving for their kids’ education over saving for retirement. While it makes sense that parents want to keep student loan debt from burdening their children, retirement savings need to come first. Student loans are an option if your child needs them, but you can’t take out loans to cover your expenses in retirement.

Look into ways to cut costs before applications start

You don’t need to wait until your child’s junior year of high school to start thinking about how to keep college costs reasonable. Talk to your child early about how much you can afford to contribute to their education and the steps they can take to limit student loan debt. This could mean starting out at a two-year college, choosing an in-state school and applying for scholarships.

1The Motley Fool. Roth IRA contribution limits in 2023 are better than ever.

Sources: NerdWallet. How to start saving for your kids’ college.
Ramseysolutions.com. What No One Told You About Student Loans, Podcast series.

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JANUARY 2023

Put your well-being on the calendar

In January, the new year is still a blank canvas. If you’ve taken the 2023 pledge, you’re probably already thinking about your goals for your emotional, financial and physical well-being. You may also be thinking about all the ways you plan to grow this year.

Want to make the best possible start? Take the pledge (if you haven’t already) and encourage your spouse or domestic partner to join you. Then take out your calendar and start scheduling appointments that are essential for your well-being.

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Schedule these appointments in 2023

Here are just a few of the well-being appointments you should schedule for and put on your calendar. Check the resources below to learn more, including how to find a primary care doctor.

Annual physical

COST: $0*

During this exam, the doctor will check your vitals, like your blood pressure, heart rate and temperature, and will talk to you about your family’s medical history. Depending on your health background and history, your doctor might also do some blood work or further testing. Even if you’re young and in excellent health, it’s important for your doctor to get to know you, establish a baseline and be alert to changes in your health that may occur in the future.

Two dental exams and cleanings

COST: $0*

It’s important to get a dental exam and have your teeth cleaned every six months. Not only will your dentist monitor your dental hygiene, but they’ll also check for gum disease. And they’ll periodically take X-rays to check for tooth decay, impacted teeth or tooth movement. Remember, the earlier oral health problems are treated, the less costly and aggressive the treatment will be.

Dermatology exam

COST: VARIES

According to the Skin Cancer Foundation, 1 in 5 Americans will develop skin cancer in their lifetime. Be sure to conduct monthly skin cancer self-exams. Plus, annual skin exams by a board-certified dermatologist may be recommended if you have a:

  • History of skin cancer in your family
  • History of blistering sunburns or tanning bed use
  • Large number of moles or a history of atypical moles
  • History of regular sun exposure

Vision exam

COST: COVERED UP TO $80*

The American Optometric Association recommends getting an exam at least every two years to have your eyes checked for things like cataracts and glaucoma. After age 40, you’ll want to get an eye exam every year.

Gynecology exam

COST: VARIES

If you’re female and over age 21, or are sexually active (whichever comes first), you need to start seeing a gynecologist. During this exam, your doctor will check your breasts, conduct a pelvic exam and possibly do a Pap smear (this is typically done every three to five years, depending on your age), where they’ll check your cervix to test for any cancerous cells or abnormalities. 

Mammogram

COST: $0*

A mammogram is a low-dose X-ray of the breast. Regular mammograms can help detect breast cancer at an early stage. They can often find breast changes that could be cancer years before physical symptoms develop.

  • Women under the age of 40 with family history of breast cancer, or who have discovered a lump.
  • Women between ages 40 and 44 have the option to start screening with a mammogram every year.
  • Women ages 45 to 54 should get a mammogram every year.
  • Women ages 55 and older can switch to a mammogram every other year, or they can choose to continue yearly mammograms. Screenings should continue as long as a woman is in good health.

Vaccinations

COST: $o*

Make sure to get your flu shot and any other vaccinations your in-network primary care provider (PCP) recommends. You’ll find a complete list of vaccinations the CDC currently recommends by age group here.

Financial checkup

COST: VARIES

A financial checkup looks at the current state of your finances and helps you determine any changes you need to make to meet your goals. It may include the following.

  • Reviewing your life changes. They can affect your taxes and financial goals.
  • Creating a budget to be intentional about spending, saving and investing.
  • Assessing, reducing and managing your debt.
  • Checking your credit score since it affects loan rates and terms you receive.
  • Revisiting your retirement plan to make sure it aligns with your goals.
  • Evaluating your estate plan so your loved ones are protected.

Get a free 30-minute financial consultation through Resources For Living® (RFL®)**.

*If you’re enrolled in a Costco medical plan.

**Resources For Living is available to all employees and members of their household, including children up to age 26 living away from home.

Sources: InStyle. The 6 doctors’ appointments you need to make this year.
American Cancer Society. American Cancer Society recommendations for the early detection of breast cancer.
Investopedia. How to conduct a financial checkup.

For more information on how your Costco benefits can support your efforts to enhance your emotional, financial and physical well-being, see the resources below.

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JANUARY 2023

Get SMART about your goals

Who hasn’t made a New Year’s resolution only to see it fizzle out by February? Don’t blame your lack of willpower. (Trust us, it’s not that!) If you want to achieve an important goal, make small, specific changes that can lead to a big change. You can do it if you set SMART goals.

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What are SMART goals?

The S.M.A.R.T process was developed to help managers set achievable management goals and objectives. Today the SMART process is everywhere, offering useful guidelines for anybody who wants to make a big change in their lives.

letter S

Specific

Include details. Setting a goal to lose 15 pounds works better than “lose weight.”

letter M

Measurable

Track your progress as you work toward your goal. Try using a journal or an app 3 or more times per week.

letter A

Achievable

Make sure your goals are realistic. Retiring at age 30 is not very realistic. Saving an extra $100 a month might be achievable.

letter R

Results-oriented

Focus on what you’re trying to accomplish. But if you encounter obstacles, such as family obligations, adjust as necessary.

letter T

Time-bound

Set a realistic amount of time to achieve your goal. Celebrate as you check off smaller goals along the way, such as making a substantial credit card payment.

Put SMART to work in your life

Now that you know what SMART goals are, here are some examples of how you can use them to achieve your well-being goals.

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Strengthen family bonds

Goal: I will work on nurturing and strengthening my family ties.  

SMART breakdown

  • Specific: I will plan two family activities every week. 
  • Measurable: I’ll keep track of my ideas in a notebook, then write them on our family calendar. 
  • Achievable: Our family has consistently done Taco Tuesdays and trips to the movies every month; therefore, scheduling family activities is doable. 
  • Results-oriented: These activities will play a big part in fostering and deepening the bonds among all family members. 
  • Time-bound: My goal is to put a deposit on a family vacation in six months for a trip we will take next summer.
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Live within a budget

Goal: I will create a budget of $3,450 every month. 

SMART breakdown

  • Specific: I will create a budget of $3,450 every month and spend $300 less.  
  • Measurable: I’ll keep a record of every expense and ensure that I spend less than my budget of $3,450.
  • Achievable: My average monthly spending is $3,250; therefore, I can try my best to stay within the budget if I don’t use my credit cards.  
  • Results-oriented: Keeping my expenses within a budget of $3,450 will prevent me from splurging on items spurred by impulse buying. It will also help me save more and make me more responsible.
  • Time-bound: The goal is to develop a consistent habit of living within a budget of $3,450 every month throughout this year.
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Get regular exercise

Goal: I will consistently work out a minimum of 20 minutes per day, three days a week by summer.  

SMART breakdown

  • Specific: I will do low-impact exercises for 20 minutes per day, three days a week.
  • Measurable: I will measure my progress using a fitness tracker and calendar, making sure I complete my 20-minute workouts. 
  • Achievable: Scheduling workouts for Monday, Wednesday and Friday is manageable for me in the long term. Also, keeping it at 20 minutes will help build up the intensity and allow me enough time to benefit from the cardio, while being short enough to not impact my other routine tasks. 
  • Results-oriented: Working out for 20 minutes three days a week will give me the amazing benefit of moving from low-impact to high-intensity workouts while being manageable enough to sustain for the long term.
  • Time-bound: I will consistently work out a minimum of 20 minutes per day, three days a week by July 15. 

Sources: LifeHack. How to write SMART goals (with SMART goals templates).
LifeHack. 20 personal SMART goals to improve your life.

If you’d like to learn more about Costco benefits and resources that can help you achieve your SMART goals, the following resources can help.

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JULY 2022

Build a budget in 5 steps

How do you define “budget”? Many people think of it as a belt-tightening approach to spending. But it’s far more positive than that. A budget is a plan for what you do with your money. And it’s designed to serve you and your goals. When you learn how to create a budget — and keep it going every month — you’re giving your money purpose. You’re taking control.

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No matter what financial goals you have, no matter what your income, you can make a budget — and live with it comfortably — in just five steps.

Step 1: List your income.

Income is any money you plan to receive during the month. That means your normal paychecks plus any extra money that comes your way, such as income from garage sales or freelance work. Create separate income budget lines for every paycheck you (and your spouse or partner) earn, plus anything extra.

The amount you indicate should be your net income (what you earn after taxes and other deductions). If your income is less predictable, look at what you’ve made the last few months and list the lowest amount as this month’s planned income budget line. You can adjust later in the month if you make more and add that extra money to your money goal or another budget line.

Step 2: List your expenses.

Now that you’ve planned for the money coming in, you can plan for the money going out. It’s time to list your expenses. Budget for your savings goals, such as an emergency fund. You’ve got to pay yourself first before you pay everyone else!

After that, list food, utilities, shelter and transportation. Make a budget category for each of these items, and add lines underneath for your specific expenses. (Think of a budget category as a folder, and the lines as the files inside it.)

Some are fixed expenses, that is, expenses that stay the same every month, like your rent or mortgage. Other expenses, like groceries or gasoline, change each month. Just start with your best guess based on your past spending.

Next, list all other monthly expenses. Start with essentials, such as insurance, debt, childcare, etc. Then add a miscellaneous line, followed by nonessentials like personal spending, fun money and entertainment.

Step 3: Subtract expenses from income.

Subtract all your expenses from your income. This number should equal zero. That doesn’t mean you let your bank account reach zero. Leave a little buffer in there of about $100–300. If you subtract your expenses from your income and have money left over, put it toward your current money goal.

If you end up with a negative number, just cut expenses, preferably from your dining out and entertainment budget lines, until your income minus your expenses equals zero. If you’re still struggling to make ends meet, don’t forget you can work overtime or explore ways to add to your income. Just remember not to increase your spending when you increase your income. Your extra cash needs to cover your budgeted expenses.

Step 4: Track your expenses.

If you don’t make yourself accountable by tracking your expenses, a budget is just a list of good intentions. Tracking expenses will help you:

  • Stay accountable to your budget, yourself and your money goals.
  • Keep from overspending, because as you enter expenses, you’ll know what’s left so you don’t overspend.
  • Stay on top of the budget. When you track transactions, you can make appropriate adjustments as you need to.
  • Learn and adjust your spending habits so you can get back on track with your goals.

Step 5: Make a new budget before the month begins.

Copy this month’s budget over to the next, and make changes for anything new that’s coming. That way, you’ll be prepared for birthday, holiday and anniversary expenses; back-to-school shopping; semi-annual expenses, such as car maintenance; and annual expenses, such as vaccinations for your pets. To plan for these expenses, create a budget category such as “month-specific stuff,” and update it as needed.

How do you pay for these month-specific items? Cut back spending somewhere else, and move that money over to this category. If this sounds too complicated or difficult, don’t be discouraged. It typically takes around three months to get comfortable with budgeting, so keep working on it! The benefits of budgeting are worth the effort.

Source: Ramsey Solutions. How to make a budget: your step-by-step guide.

Looking for ways to improve your money-management skills? The following resource can help.

 

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APRIL 2022

6 financial tips for the sandwich generation

It seems like only yesterday that your kids were toddlers. Now they’re heading to college — just as your aging parents need your help. Congratulations, you’ve joined the sandwich generation. Whether this is your current situation — or one you may face in the future — taking care of multiple generations of your family can be tough on your stress level and your wallet.

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Here are six tips to help you support your loved ones while safeguarding your own financial well-being.

1. Get your finances on track.

Whether you’re currently caring for your kids and aging parents, or you’re on your own, now’s the time to get rid of your debt. Need help? Sign up for SmartDollar® and follow the 7 Baby Steps to restore your financial health.

2. Talk about finances early and often.

If you’re caring for your parents, don’t be afraid to ask them tough questions. Are they in debt? Do they have life insurance or long-term care insurance? Do they understand their investments? Do they have a will?  Can they share its location with you? As for your grown children, ask them about their goals. Talk to them about lifestyle changes they need to make to get where they want to be.

3. Start planning for the right kind of elder care

If your parents need in-home care, an assisted living facility or a nursing home, you’ll need to discuss the financial impact with them. Decide what type of care fits their budget (or yours, if you’re the one supporting them). Visit Resources For Living® for adult and elder care referrals and to find out more about the 30-minute free legal consultations available to you.

4. Save and invest for your own retirement.

If you aren’t already doing it, start saving for retirement. By making your retirement savings a priority, you can save your kids from the same stress you might be going through now with your own parents. The sooner you take advantage of your Costco Retirement Plan, the more you’ll save.

5. Save for your children’s college.

It’s never too early to start exploring the best ways to save for your kid’s college education. If they’re still in high school, make sure their dream college is one you can afford. Help them look into scholarships, and encourage them to get a part-time job. This way, they can start saving before entering college. If you have kids who are already in college, talk to them about getting a part-time job during the school year and a full-time job for the summer to help them avoid accruing debt. Finally, talk with them about learning to live on a budget.

6. Set clear boundaries.

Balancing money and relationships can be complicated. The best thing to do is set healthy boundaries and talk about expectations. It’s hard to say no to parents or children when you’re trying to work on your finances. But don’t let anyone make you feel guilty for trying to take care of your own household first.

Source: RamseySolutions.com

The following resources are available to help you stay financially fit — whether you’re single or caring for aging parents or children. These resources are confidential and available to you at no extra cost.

 

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APRIL 2022

Make a will for peace of mind

There’s a reason 50 to 60% of Americans don’t have a will. Even the idea of talking with someone about estate planning makes some people uncomfortable. But it’s an important conversation to have. You can learn how to provide for your loved ones after you’re gone. And you can enjoy the emotional benefits of getting your finances in order and knowing that you’re taking care of the ones you love.

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A will puts your mind at ease

Having a will is one of the most important things you can do for yourself and your family. It offers you peace of mind — right now — because it allows you to:

Protect your family from financial hardship

You decide — not a probate court — how to divide your estate. This means, at a very difficult time, your family can have a seamless and peaceful financial transition and avoid long, unnecessary delays as well as attorney and legal fees.

Minimize confusion and conflict

Having a will empowers you to make your wishes clear and helps minimize family clashes over your estate. It also ensures that part, or all, of your estate doesn’t go to someone you never intended to be your beneficiary. Your beneficiary is the person (or persons) you choose to inherit your assets if anything should happen to you.

Choose the right guardian for your children

You can then take the time to think about which relative or friend you’d want to raise your minor children, and then ask them if they’d be willing to take on that responsibility. Once that’s settled, you can designate them in your will, a legally binding document.

Make meaningful gifts and donations

Your personal values and interests can live on through the legacy you leave your favorite organizations. Gifts up to $13,000 are excluded from estate tax, so you’ll also be increasing the value of your estate for your heirs and beneficiaries to enjoy.

When you make a will, you gain the satisfaction of knowing you’ve done the smart, responsible thing for those you love. And that’s something to feel good about.  

Source: FindLaw. Top 10 reasons to have a will.

The following resources are available to help you plan and secure your family’s financial future. These resources are confidential and available to you at no extra cost. 

 

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APRIL 2022

Start preparing for retirement

Take a moment to focus on your financial well-being and make the most of your Costco Retirement Plan,* administered by T. Rowe Price.

*For Mainland and Hawaii employees, the plan is called the Costco Retirement Plan. For employees in Puerto Rico, it’s called the Costco Puerto Rico Retirement Plan. 

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Make saving for retirement a priority

Whether your retirement is decades away, or just a few years down the road, use this list and your Costco Retirement Plan to get ready. Start by visiting RPS.TRowePrice.com to view your Costco Retirement Plan.

Add an extra layer of security for your plan account by setting up multi-factor authentication. Multi-factor authentication helps keep your financial information secure by requiring two or more forms of authentication to verify your identity.

Name your beneficiary, the person (or persons) you choose to inherit your assets if anything should happen to you. If it’s been a while, check to ensure your beneficiary information is up to date.

Update your email address to receive timely newsletters and valuable saving insights.

Contribute enough to get the full matching contribution. Review your contribution now.

See if you qualify for the Retirement Savings Contributions Credit (Saver’s Credit). For low- to moderate-income employees who qualify, the Saver’s Credit means you can get a tax credit based on your tax filing status, adjusted gross income and how much you contribute. 

Make sure your T. Rowe Price Automatic Increase is turned on, so your contribution will be increased by 1% each year.

Strive to save 15% of your annual pay — it’s OK to work your way up to the suggested target gradually.

If you’re age 50 or older, consider making catch-up contributions. This allows up to an additional $6,500 (for 2022) to help you move closer to your retirement goal.

Get your financial house in order

Learn to budget, free yourself from high-interest debt and aim for higher savings goals with help from SmartDollar®.

Build an emergency fund equal to three to six months’ expenses to help you in case there are unexpected changes in your income.

Make a budget that matches your lifestyle and gives you room to save.

Create a plan to pay down credit card debt; paying off small balances first can motivate you to keep going.

Use your emergency fund instead of credit cards to offset surprise costs.

The following resources are available to help you get started on your retirement plan. They are confidential and are available to you at no extra cost.

 

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OCTOBER 2021

Future-proof your finances

No one knows what the future will bring. But with three essential Costco insurance benefits, you can make plans today to take care of your loved ones, no matter what happens.

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Protect your financial well-being

Through your Costco benefits, you’ve got help to meet your financial needs — and provide for those you love — when the unexpected happens. Get to know these important Costco benefits administered by Unum.

Life insurance is there when you aren’t, to keep your family’s finances healthy. It pays a cash benefit in case of your death to a person (or persons) you choose as your beneficiary. If you’re enrolled in a Costco medical plan or Costco Long-Term Disability insurance, you and your family members are automatically covered by Basic Life Insurance at no cost to you.

Want more? You can elect additional coverage with Supplemental Life for yourself, your spouse or domestic partner, and/or your child(ren). You can do this when you first become benefits eligible, during Annual Enrollment, or during a qualified mid-year event.

Accidental death & dismemberment (AD&D) insurance pays a benefit if you are injured or die as the result of an accident. Depending on your injury, the benefit is a percentage of the total benefit amount you’re eligible for. It’s paid in addition to any life insurance benefit. If you’re enrolled in a Costco medical plan or Costco Long-Term Disability insurance, you and your family are automatically covered by AD&D insurance at no cost to you.

Disability insurance helps replace income lost when you’re not able to work because of an illness, injury or other medical condition (such as pregnancy).

  • You’re automatically enrolled for Voluntary Short-Term Disability* (STD) insurance. You pay a small payroll contribution, which is based on the amount of your earnings.
  • If you’re enrolled in a Costco medical plan, or you are declining health coverage because you’re enrolled in a plan outside of Costco, you’re automatically enrolled for Long-Term Disability (LTD) insurance — at no cost to you.

    *In most states.

Check your benefits: Log in at Costcobenefits.com to view your life, AD&D and disability amounts.

Do you have a beneficiary?

Your beneficiary is the person (or persons) you choose to receive the benefits from your Costco benefits (life insurance, AD&D and retirement plans) in case of your death. It’s important to keep your beneficiary designation(s) up to date so you can be sure the right people receive your benefits.

If you don’t name a beneficiary, your estate becomes the beneficiary. This means your benefits go into probate, and the people who end up with your benefits may not be those you would have chosen. Keeping your beneficiary designation(s) up to date is important, too, as needs, preferences and family situations change.

To designate or change your life insurance beneficiary, log in to the Enrollment Website at Costcobenefits.com. You can name anyone you want as your beneficiary — and you can name more than one person.

To designate or change your retirement plan beneficiary, log in to the T. Rowe Price website. If you’re married, your beneficiary must be your spouse unless your spouse consents to another choice.

The following resource is available to you through your Costco benefits to help you take control of your financial well-being.