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APRIL 2025

Retirement planning: 3 ways Costco helps

Ever wonder what life will be like after you stop working? Often, what retirement will look like depends on how you prepare before you retire. Whether retirement is a year away or 25 years, learn what you need to know now for retirement later.

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Costco 401(k) Retirement Plan: The annual company contribution helps you grow your savings

Costco invests in your future with both matching and annual company contributions to your Costco 401(k) Retirement Plan account. Employees in Puerto Rico have the Costco Puerto Rico Retirement Plan.

Eligibility: Once an employee has completed a year of service, they’ll be entered into the company contribution portion of the plan beginning the first day of the month after their anniversary date.

Annual company contribution: Costco contributes a percentage of eligible earnings paid from the entry date – regular pay, overtime, vacation pay, holiday pay, sick pay, paid time off and extra checks – to your 401(k) account*, even if you don’t make any contributions of your own.

The contribution starts at 4% for an employee’s first few years, and increases as your years of service increase, capping at 9% after 25 years.

Matching company contribution: The company also matches 50% of your own contributions, up to $500 a year.

Best of all – these contributions belong to you with immediate 100% vesting.

To check your account balance, set up automatic payroll deductions, adjust your investment mix and much more, go to RPS.TRowePrice.com. You’ll also find financial tools and resources, including an Education Library, Retirement Income Planner and calculators:

  • Paycheck Impact Calculator
  • Contribution Maximizer
  • College Planning Calculator
  • Roth Comparison Calculator
  • Social Security Calculator and more

2024 Annual company contribution: Costco contributed nearly $616 million to employee retirement accounts in 2025 for the 2024 annual company contribution. If you missed the letter Costco sent noting this year’s contribution amount, see your quarterly statement from T. Rowe Price.

Years of
Service		Company
Contribution		Average Contribution
Per Year
1-3 years4% $1,371
4-9 years5%$2,996
10-14 years6%$4,198
15-19 years7%$4,994
20-24 years8%$5,897
25+ years9%$7,147

*Employees at union warehouses should consult their collective bargaining agreement for more information about Costco’s contributions to their 401(k) plan.

Purchase company stock and become a shareholder in the company

The Employee Stock Purchase Plan (ESPP) with UBS lets you purchase Costco stock through payroll deductions. You choose the amount you’d like to invest each pay period. Fees and commissions for these purchases are fully paid by Costco. To learn more, visit Costcobenefits.com > Financial Wellbeing > Employee Stock Purchase Plan (ESPP).

Get familiar with Medicare — know your health coverage options before and after 65

While Medicare is available beginning at age 65, if you retire before age 65, you’ll need health coverage to fill the gap. You can explore coverage options available at HealthCare.gov, or you can contact the Benefits Department at 800-284-4882 to learn more about your retirement health plan options.

Do you or a family member have questions about Medicare, Medicare Advantage or Supplemental plans? Get answers to your questions. SGIA Medicare Consulting offers one-on-one support to help you find the plan that fits your needs. This service is available at no cost to all Costco employees and their families, including parents.

To connect with a Medicare expert, call 888-821-6486 or learn more at sgiamedicare.com/costco.

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APRIl 2025

Your financial knowledge toolkit

Dealing with money and finances can be overwhelming. But small changes, wise choices, and a little guidance and support can help you reach your financial goals.

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Here are some tips:

Be mindful with your spending

“I can’t afford a house, so I might as well treat myself to a fun weekend.” That might seem like a good idea in the moment. But here’s the truth: small, intentional spending decisions can add up more quickly than you think, and help you reach big goals.  

Reduced spending can also reduce waste in landfills. Ordering out for dinner means higher meal costs plus plastic bags, boxes and other disposable materials. Meal planning for the week on a free day helps you save money and reduce your carbon footprint.

Write down your financial goals

What are your financial goals? What’s important to you? SmartDollar, your no-cost confidential online personal finance program, is designed to help you reach your goals.

SmartDollar’s step-by-step plan helps you take small steps to pay off debt and save more using the online budgeting tool. It keeps you motivated with video lessons from personal finance experts and gives tips to: 

  • Pay off debt faster
  • Set up an emergency fund
  • Save for college 
  • Buy a car
  • Save for a down payment on a house

Free one-on-one financial coaching is also included. To sign up and get started, visit SmartDollar.com/enroll/costco or text Costco to 33789* to download the app.

If you want to grow your financial knowledge, additional financial resources are available through Resources for Living. Get a free 30-minute consultation per concern with a financial specialist. They can help with things like budgeting, credit repair and reports, mortgages and refinancing, debt management and tax questions. Visit RFL.com/Costco to request a free financial consultation.

Be smart about big purchases

Do your research before buying a house or car. Take the time to compare prices and learn about the market in your area. Consider things like rates and resale value to make an informed decision and get the best value for your money. Consider checking out the Costco Auto Program.

Watch these SmartDollar videos for additional ways to save:

Take advantage of these ways to save

Your Costco benefits can help you make the most of your money.

  • Save on monthly expenses — New for 2025, you have access to LifeMart for employee discounts on gym memberships, virtual fitness and childcare.**
  • Contribute to your 401(k) — Costco offers matching and annual contributions to your retirement plan with T. Rowe Price. To check your 40l(k) account balance, set up automatic payroll deductions, adjust your investment mix and much more, go to RPS.TRowePrice.com.
  • Purchase company stock — The Employee Stock Purchase Plan (ESPP) lets you buy Costco stock through payroll deductions. You choose the amount you’d like to invest per pay period.
    To learn more, visit Costcobenefits.com > Financial Wellbeing > Employee Stock Purchase Plan (ESPP). 
  • Save on taxes — Use reimbursement accounts for eligible expenses.
    • A Health Care Reimbursement Account (HCRA) lets you set aside pretax dollars to pay eligible medical expenses. You can use it for things like copays, deductibles and coinsurance, dental and vision expenses, plus prescriptions and over-the-counter items. Sign up for an HRCA during Annual Enrollment.
      To learn more, visit Costcobenefits.com > Financial Wellbeing > Health Care Reimbursement Account.
    • A Dependent Care Assistance Plan (DCAP) lets you set aside pretax dollars to pay for qualified child and elder care expenses needed for you and your spouse to work. You can use it for expenses like day care, before- and after-school care, nursery and pre-school, and in-home aids. Keep in mind that the DCAP isn’t for dependent health care expenses. You can sign up, change or stop your DCAP based on your dependent care needs.
      To learn more, visit Costcobenefits.com > Financial Wellbeing > Dependent Care Assistance Plan.

NOTE: If you were enrolled in a reimbursement account in 2024, remember that your claim filing deadline is April 30. Any unused funds are forfeited after this date. Only your HCRA rollover amount of up to $640 can be carried over from 2024 to use in 2025.

*Message and data rates may apply. 

**Childcare discounts are not available in Puerto Rico. 

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Live your best financial life
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JULY 2023

Live your best financial life

It’s great to have money, but who wants to think about it? The short answer is: You do. Because the earlier you think about it, the better. If you’ve decided it’s time to learn more about money and get your financial life on track, congratulations. Getting control of your finances is the first step toward achieving the financial life you’ve always wanted.

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Live your best financial life

Get started now

If you’ve already decided to learn about money and create a financial plan, you’re one step ahead of most people. An important next step can be to share your journey with friends and family. That way, when they check back with you about your progress, you can be accountable to someone. Remember: Goals that aren’t written down are just wishes. So write your decision down, share it with loved ones and stay accountable.

After making your decision, you’ll want to know exactly where you stand. One way to do that is to look at your credit report so you know what information lenders are seeing about you. Check with any of the three credit score issuers: Transunion®, Equifax® and Experian®. Review your credit report carefully and be sure to challenge any mistakes or inaccuracies.

Make a plan — and a budget

Looking through your credit report can give you an idea of the existing debt and expenses you have. Write down all your monthly expenses and your monthly income. Capturing your total income and expenses is the first step in making a budget. Depending on your history with money, you may have a negative association with the word budget, but it’s important to remember that a budget is just a tool. It can help you stop spending money on things that aren’t important to you, so that you still have money to spend on the things that are important to you.

Cut your expenses

Again, you’ll want to make sure your budget is written down and tracked. Once you’ve been budgeting for a few months, you’ll start to notice patterns in where and how you spend your money. Decide which expenses align with what’s important to you, and cut the things that don’t. Use any extra money each month to create an emergency fund and reduce your debt. 

Grow your income

While many budgeting guides talk about eliminating that daily coffee purchase or unused gym membership, that’s only one side of the story. There’s only so much you can cut out of your budget, while in theory at least, you have unlimited income potential. Look for more ways to save in your spending when you go shopping, or out to dinner. Wait for larger items to go on sale before you pay the full price. And also look for ways to bump up your income — perhaps selling items you don’t need or doing small jobs in your spare time.

It’s a marathon — not a sprint

Finally, remember that financial health is a marathon, not a sprint. Depending on where you’re starting, you may not completely eliminate your debt in a few months or even a few years. It will take time. So it’s important to remember to be steady and patient. And not all months will be the same. There will be times when you slip up and make poor financial choices. This is another reason why writing down and tracking your progress can be useful. It helps you see that if you have a bad financial day, you’ve also had many good days. You’ll get there. 

Need help?

As a Costco employee, you have access to SmartDollar®, a financial well-being program, as well as one-on-one financial coaching, that’s included in your Costco benefits — at no cost to you. In addition to educational content from financial experts, it offers a full suite of budgeting, tracking and financial tools, plus Dave Ramsey’s 7 Baby Steps program. This proven program is designed to help you learn how to stick to a budget, get out of debt, save for the future and retire with confidence — no matter where you start.

The bottom line

Deciding to manage your financial situation, track your expenses, learn to budget and get control of your money is one of the best financial decisions you can make. Building on a sound financial foundation can provide peace of mind and help you lead a more stable life. Decide to start, write it down and share it with trusted friends and family. Gather information on your monthly income and expenses and start a budget.

Remember, sharing your decision and your progress with others helps keep you accountable, even when the inevitable slip-ups happen. When you do slip up and make a poor financial decision, the most important thing you can do is acknowledge that it happened and plan to do better tomorrow. One day at a time, you’ll find your path to a brighter financial future.

Source: Intuit MintLife. Getting my finances together: Where do I even start?

*With more than 90 days of service.

If you’re ready to live your best financial life, the following resources can provide the support you need.

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CHECK IT OUT

JUNE 2023

How to have a fearless financial life

Few people are completely rational when it comes to money. Most of us don’t create and follow a budget or save something every paycheck, though we think we should. We know we need a financial plan, but somehow it doesn’t happen. We often spend too much money because it’s more fun to buy a higher-priced item today than to put the money in savings and wait twenty years to reap the rewards. Often we spend too little because we feel guilty. And sometimes our behavior with money brings on uncomfortable feelings.

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Many of us have a complex relationship with money. We make decisions about money that impact our financial situation, and those impacts in turn affect our feelings and future behaviors. And it’s a relationship that evolves over a lifetime.

Here are three key things to know about our relationship with money:

  • Emotion plays a huge role.
  • Anxiety and avoidance create a vicious cycle.
  • Our family dynamics and past experiences affect our behavior.

Emotion and money

The emotions you connect to money, including fear, envy, shame and guilt, tend to drive your actions.

What’s there to be afraid of? You might be afraid of looking foolish, for example, when it’s your turn to pick up the check and you’re short on cash. Perhaps you’re afraid that you’ll never have as much money as the people you see on TikTok and Instagram. If you’re making more money than your friends, you might be worried that they secretly envy and resent you. Or you might fear being exposed or humiliated if you experience a sudden drop in income.

Shame is one of the most common and powerful emotions associated with money and personal finance. It’s one of the main reasons people avoid doing what they know they should. 

Here are just some of the possible versions of shameful feelings related to money:

  • I don’t have enough money.
  • I’ve avoided thinking about finances.
  • I’ve avoided doing what I’m supposed to do about finances (creating a safety net, planning for retirement, sensible budgeting).
  • I’m really ignorant about all of this.
  • I spend too much.
  • I buy stuff when I’m unhappy.

Shame interacts with avoidance to create a vicious cycle. When you’re filled with shame, the natural tendency is to avoid facing whatever is making you uncomfortable. That avoidance itself leads to additional shame and more avoidance. Next thing you know, your taxes are overdue, and it’s six years since you decided to finally make an appointment to see a financial planner – and it still hasn’t happened.

People who avoid tackling financial necessities often label themselves procrastinators and assume they’re just lazy or undisciplined. That’s not helpful. The fact is, we’re hardwired to try to avoid things that make us feel anxious or uncomfortable. The tricky thing is that in the very short run, avoidance works to reduce anxiety. Because it works, you’re inclined to do it again in the same circumstance.

The vicious cycle of anxiety and avoidance

Here’s how it unfolds. You’re thinking about sitting down, taking a hard look at your financial situation and creating a realistic financial plan. But just thinking about it increases your anxiety, because you’re afraid you won’t be able to face the reality that, for example, you have nowhere near enough saved for your kids’ education. That anxiety leads to avoidance. You postpone the task and distract yourself. At that moment, your anxiety level immediately drops, giving you positive reinforcement for avoidance.

You repeat this cycle over and over. But each immediate drop in anxiety doesn’t quite bring you back to the previous baseline level of distress. And over time, your overall level of anxiety increases and increases.

So, what happens when you confront this unpleasant task? As you face the facts, your anxiety temporarily increases. If you stay with it, however, the overall level of anxiety will steadily decline. You have to tolerate that short-term increase in distress to benefit from the long-term decrease in anxiety. In the end, the lesson is that reality makes a better friend than avoidance.

Other emotions that come into play with money include envy, greed, over excitement and a social-psychological phenomenon known as “jumping on the bandwagon.” Some of these are more relevant in the realm of professional investing as opposed to personal finance.

Family and childhood influences never end

Every family has its own particular psychology of money. What can be talked about, who should be in control, what money responsibilities are assigned to what gender, how important money is or isn’t.

Additionally, there are always stories about money that are part of a family’s identity. Maybe a serial entrepreneur grandfather lost the family fortune, prompting later generations to be very conservative with money.

You may have experienced subtle pressures to right the wrongs experienced by previous generations. Or you may feel internal pressure to oppose the family money mentality. If you’re the first in your family to succeed, you might want to give back to the rest of the family and neglect your own financial needs.

How to harness money emotions

Emotion isn’t all bad. It tells you what you’re passionate about, what really matters to you. It makes you feel alive. Anxiety isn’t all bad either. A little anxiety can motivate you to make much-needed changes that improve your situation. Harness it to tackle what you need to face and know that you’ll feel better when you’ve done so.

The key is self-awareness. Much of our emotional world is unconscious. But it’s not that hard to access. You just need to know what to look for and have a blueprint for the kinds of emotions and family stories that can influence your personal relationship with money.

Source: Forbes. The psychology of money: what you need to know to have a (relatively) fearless financial life.

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LEARN THE BASICS

APRIL 2023

Video: 5 ways to create financial stability

How do you get out of debt, stretch your paycheck, grow your savings, and prepare for retirement and other big-ticket life expenses? The smartest move you can make is to get started now with some practical guidelines from this short video.

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When it comes to financial stability, the earlier you get there, the better off you’ll be in the long run. But you won’t have to do it alone. Your Costco benefits can help. They offer information that can help you develop healthy financial habits and ways to help you build your nest egg. For more information, check out the “Resources for you” section below.

Source: Healthwise. 5 ways to create financial stability.

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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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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

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.

emotional well-being icon

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.
financial well-being icon

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.
physical well-being icon

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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multi-generation family

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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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multi-generation family

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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Costco employees holding a jar of money

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APRIL 2022

Invest where you work

Working for a thriving company is a good feeling. You’re part of a winning team. Your hard work is making a difference. And at Costco, there’s something else to feel good about: You can share in the profits you helped build — through the Employee Stock Purchase Plan (ESPP).

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What is an ESPP?

The employee stock purchase plan, or ESPP, is a benefit Costco* offers that allows employees to buy shares of company stock without having to pay commissions. In Costco’s case, fees and commission for these purchases are fully paid by Costco. Employees who choose to participate generally make contributions to the plan through payroll deductions. The deductions are held in the plan until a set purchase date. At that point, they’re invested in the company’s stock.

*At Costco, employees who are 18 or older are generally eligible to participate. Participation in the ESPP is entirely voluntary.  

What are the advantages of an ESPP?

With an ESPP, the brokerage fees and commission are paid by Costco. Brokerage fees and commission can be as high as 2% of the stock price. So, for example, if you buy ten shares of Costco stock at $500 per share, the fees and commission would be around $100.

When participants enroll, they can choose either a percentage or flat dollar amount to be withheld from their paychecks. These deductions accumulate during the offer period. Then, on set purchase dates, the company uses the funds to buy stock for plan participants.

A qualified ESPP can offer some tax benefits. When you sell the stock: 

  • If the stock has increased in value, the gain will also be taxed as ordinary income. 
  • If you hold the stock for more than a year, it will be taxed at the typically lower capital gains rate.   

Source: NerdWallet. ESPP: What to know about employee stock purchase plans. 

The following resources are available to help you learn more about your Costco Employee Stock Purchase Plan. These resources are confidential and available to you at no extra cost.