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Costco offers two tiers of membership to choose from. You could pay $65 a year for a basic Gold Star membership, or upgrade to an Executive membership for $130 a year.

The Executive membership gives you the benefit of 2% cash back on your purchases in exchange for the higher price. But it’s important to make sure you intend to use your membership often enough to recoup the $65 upgrade fee at the very least.

If you’re not sure which Costco membership will be right for you in 2025, here are some questions to ask yourself that could help you land on the right decision.

1. Is my family growing?

It may be just you and a spouse for now. But if you’re expecting a baby in 2025, you may soon find that you’re spending more at Costco on diapers, wipes, and formula.

Perhaps you’re in the process of adopting a child. If so, having another mouth to feed could increase your grocery spending, making the case for an Executive membership upgrade.

2. Am I moving to a home with more storage?

Maybe you’ve shied away from loading up on groceries and household products from Costco in bulk due to a lack of space. But if you’re about to sign a mortgage and close on a bigger home with more storage space, then you may find that you’re able to buy more of your food and essentials in larger quantities for the savings involved. In that case, you’re more likely to get great value out of an Executive membership.

3. Am I trying to budget more carefully by cooking more food at home?

It’s common to make financial resolutions when a new year arrives. If one of yours is to get onto a budget and reduce your spending, then you may find yourself buying more groceries at Costco.

Cooking at home more often vs. ordering food and dining out could be a huge money-saver. And in that case, you may find yourself primed to earn extra cash back on an Executive membership.

4. Do I have any big vacations planned?

Booking a vacation through Costco could save you money while giving you access to extra perks like resort or dining credits at your destination. If you think you’ll take a big trip in 2025 and potentially book it through Costco, then an Executive membership upgrade could really pay off.

It takes $3,250 in annual Costco spending to recoup the $65 cost of the upgrade. Booking a single vacation package might get you to that point easily.

5. Will I be upgrading any appliances or electronics?

Appliances and electronics don’t last forever. If you think you might get a new fridge or laptop in 2025, and there’s a good chance you’ll buy one from Costco, then getting the Executive membership could truly pay off.

A big purchase like that could put extra cash back in your pocket. Plus, when you buy items in these categories from Costco, you get the benefit of a 90-day return policy. Electronics also come with a free second-year warranty and tech support.

All told, if you have reason to believe your Costco spending will increase in 2025, then an Executive membership makes sense. But even if you decide to stick with a Gold Star membership, that doesn’t mean cash back at Costco is off the table. If you use the right credit card at the store, you can pocket plenty of rewards.

Click here for a list of the best credit cards for Costco shoppers. All of these are worth using whether you stick to a basic membership or upgrade to an Executive membership for 2025.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

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Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.