Costco accepting food stamps: not exactly a great idea
Filed under: Food, Shopping, Economizer
Costco has started to accept food stamps at its warehouse clubs nationwide, which could be great for poor people looking for deals on food, or the worst decision in the history of buying groceries.Anyone who has been to a Costco store knows the enticements of impulse buys that you'd normally walk by without a thought at any other store. Four pounds of red king crab for $99.99? Sure, why not? A deli meat party pack for $44.99? Yeah, we'll eat it eventually. Enough cashews to keep a squirrel happy for the winter? Bring it on.
Buying in bulk is great if you plan on emptying out your pantry within six months and the purchase was a deal too good to pass up, as I discussed in a recent podcast with a frugal chef.
And with a record 35 million people being helped through the Supplemental Nutrition Assistance Program, or SNAP, in July, they sure can use the discounts offered at Costco. That's a 23% annual increase in the number of people using SNAP, proving that the recession hasn't ended yet.
The average monthly SNAP benefit last year was $101.52 per person. For a month. Try spending about $25 a week on groceries for yourself and see how far you get.
What will $25 per week get you at Costco? You can almost afford a tub of dried fruit, which will make for an interesting week of meals, or an assortment of smoked salmon.
Whatever you're buying at Costco, even for a family of four and the extra money that having kids brings in, it's going to take some creative financing and meal planning to buy enough bulk items to come up with a week's worth of meals.
I'm not saying that SNAP recipients can't budget their money and spend wisely. As a matter of survival they're probably better than most working families in budgeting for groceries and avoiding unhealthy impulse buys.
But the grocery carts at Costco are so big and the checkout lines so long that you feel like a dope if you've wasted an hour there and only walk out with a $25 jug of olives that will last for eternity.
There are no 15 items or less lines at Costco to speed things up because no one buys less than 15 items at a time. I've been a Costco member for about six years, and I don't think I've ever walked out of there without dropping at least $100.
And that's another issue -- is Costco waiving the annual membership fee for food stamp recipients? Doubtful. The $50 fee brings in much of its profit. I don't know how someone on food stamps who is shopping there maybe once a month can justify paying $50 for the privilege of shopping there for a year, but the enticing free food samples might make a meal in themselves during a visit and make the membership fee seem cheap.
I'm all for increasing the purchasing power of shoppers, but SNAP users may have to be protected from themselves. The federal program prevents some items such as liquor and cigarettes from being bought with SNAP benefits. Maybe it should add Costco to the list of banned purchases.
You can only eat so much peanut butter, no matter how good the sale was.
Aaron Crowe is a freelance journalist in the San Francisco Bay Area. Reach him at www.AaronCrowe.net
Reader Comments (Page 1 of 6)
10-29-2009 @ 11:58AM
Cecilia said...
I'm not sure what SNAP is, but with an EBT card (which replaced paper food stamps) one can use the entire month's allowance at one time. So, bulk pasta, cereal, meat, etc. could be purchased for weeks worth of food.
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10-30-2009 @ 11:56AM
jamie said...
I was reading this and think wtf......I am a mother of 3 I work just as hard as anyone 40 plus hours a week. I do my part but my childrens father doesn't do his part,As is the same with ALOT (not all but most) cases out there and yes we reciever food stamps. The program helps me have the cash I need to pay for all thier father has decided he is no responsible for.And having 3 children I love buying in bulk! And yes I have to pay for a membership its 50 dollars for a year and robert your a dumb ass for saying or thinking that if I can afford 50 a year I dont need foodstamps. My food bill is way higher every year than 50 dollars! As I am sure your is also. The author of this article is very stupid and simple minded.
10-29-2009 @ 4:01PM
Jamie said...
Every Costco in my area has a 15-items-or-less line (or two) and there have been many times when I've just ran in to buy a couple of things. With grocery prices getting so high, I think it's a great idea for Costco to accept food stamps. Just because king crab, deli platters and large tubs of nuts are available it doesn't mean people will purchase them. They also have fresh produce, frozen meat, canned goods, juices, cereals, etc. Pretty much anything you'd need to keep your family fed on a budget. And several employers offer Costco memberships to their employees at a discounted or free rate. Not a very well-researched article, and I don't think the writer has any clue about budgeting or grocery shopping in general.
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10-30-2009 @ 7:39AM
sue said...
None of the Costcos in my area have 15 item or less lines either, nor do they offer a reduced membership price to employees so it is easy to assume that none of them would. The milk is not that much of a savings, but I agree with you on the dry foods. Normally, I never get out with less than 100$ either, but the person who wrote the article must be male, and has never been a victim of picking up a cake for a party on a Satuday!!!! That is why ALL stores should have at least 2 express lines.
10-30-2009 @ 1:03PM
Not a leach on society said...
If your husband was such a loser, wouldn't you have known that after the first kid and yet you had 3 and complain now?? Maybe we all read your post and hold our heads a little higher during rough times and look to help each other instead of complaining with a hand out! Sorry you're having a tough time, so are many of us but I for one don't want to be behind you in line while you're counting out food stamps!
11-08-2009 @ 2:33PM
Shelly said...
Yep, the author of this article is clueless about #1 Costco...there are self-serve checkouts in most warehouses now. #2...many SNAP beneficiaries are ALREADY Costco members. #3 Buying in bulk just MAKES SENSE and this will be a GREAT THING for folks needing temporary help in this messed up economy.
10-29-2009 @ 4:50PM
Katherine said...
If the food stamp person has growing children the purchase of large containers of cereal, dairy, frozen items like hamburger and chicken is an incredible value. The author cannot have been familiar with growing children's appetites.
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10-30-2009 @ 7:28AM
robert said...
the author is not saying anything about growing childrens appetites, just the fact that it costs money just to get into costco. with that being said, if you have the money for a membership you shouldn't need food stamps.
10-30-2009 @ 9:36AM
Lucy said...
For Robert: You said if you have the money for a membership, you shouldn't need foodstamps? Seriously? You do understand that receiving a check and foodstamps are not always received together, correct? I mean, some people can receive foodstamps or some people can receive a check or simply do both. It's your ignorance that make you think that people on foodstamps do nothing but defraud the government or are wasteful. Obviously, some are, but in these times, i really don't think so. People drive up to the welfare office in Escalades and enter the food stamp line. However, there are those that are truly in need. Buying in bulk doesn't mean that you're buying the entire store, like many others have said, cereal, dairy products, etc. are an incredible value. Where i live the membership is $40. Ignorance is bliss to those who don't understand sh**.
10-30-2009 @ 11:00AM
Mike said...
For Robert:
Do you realize that $50/yr divided by 12 is less than $5/month? Besides, $50 yearly membership vs. an extra $200 - $300/yr on groceries is a bargain.
10-30-2009 @ 6:16AM
Jessica said...
Well, I don't know what this guy's deal is but I have two young children for whom I receive food stamps. One of Costco's competitors has been taking food stamp cards since earlier in the year and I can spend half my monthly amount in there getting things that are reasonably sold in bulk and the other half in my local supermarket on other things. Costco is actually very smart for now accepting food stamps because I, for one, will now be going there cuz its closer!
Stick to things you know, Mr. Crowe.
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10-30-2009 @ 7:28AM
robert said...
gee you get food stamps and can afford a membership to two different member only whse stores. i wonder how you manage that. oh wait you probably lie to the government so you dont have to go out and actually provide for your children your self.
10-30-2009 @ 9:10AM
Mark said...
If you are on food stamps you should not have internet service! The money you spend on the internet should be used to pay for your food ! Stop wasting taxpayer money.
10-30-2009 @ 12:25PM
i hate people who post dumb comments said...
@Mark: I'm sure the $10 a month she spends on Internet service will feed her for a month...stop posting stupid comments and get a clue! For all you know, she might use the computer at her local library and guess what? It's free!!!
10-30-2009 @ 12:32PM
debbie said...
Robert,
You are a jerk! Jessica did not say thay she would be shopping at 2 membership only stores. The one that she currently shops at has been accepting foodstamps for a while so she has been shopping there. Now that Costco (Which is closer to her) accepts foodstamps, she will now shop their INSTEAD of the other store.
Mark,
Receiving foodstamps and having internet service are 2 completely different things! How do you know she is not using her internet at work? Or maybe she is at the library.. And if she is at home, so freaking what! She has 2 children, meaning that may be they are in school and they need the internet to do schoolwork!
What I am sayign to EVERYONE is that you do not know people's situations, so how about you do not say anything rude to them! Yes, there are some people who abuse the system, but not everyone does!
10-30-2009 @ 12:53PM
JustJem said...
Robert and Mark: Your comments show how ignorant you are.
I was thrilled when I heard Costco will soon be accepting food stamps! Im a 47 year old divorced mother of 2 teenagers, and Im also a full time college student. Ive had a Costco membership for over 10 years and I also receive $160 a month in food stamps. I cannot afford NOT to have a Costco membership. The amount that I save on paper goods, cleaning supplies, personal care items, and yes, dog food by shopping at Costco more than pays for the membership fee. I look forward to being able to stretch my food budget even more by being able to buy milk, cheese, butter, bread, baking supplies, fresh fruits and veggies at Costco. I bought a Food Saver at Costco years ago so that I can freeze and store those bulk food items that I do purchase at Costco so there is no waste.
Yes, I receive food stamps, and yes I have a dog. Guess what? I buy the big bag of dog food at Costco for $24 and lasts 6 weeks! I know, according to the ignorant replies that are sure to come, I shouldn't have a dog because Im on food stamps.
Those who comment that those of us on food stamps are "abusing the system", "shouldn't have internet access", "shouldn't have a Costco membership", etc are ignorant. Just because we are receiving aid does not mean we should also be penalized for receiving that aid.
10-30-2009 @ 6:26AM
Minh said...
Per Aaron Crowe's definition of SNAP users:
"...but SNAP users may have to be protected from themselves".
Are they all dumb or stupid and needed to be protected from making decision of how to feed their family or because they receive food stamps from the government so you earn the right to insult them?
Aaron, shame on you !!!!!
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10-30-2009 @ 7:32AM
Paulette said...
Costco has a number of great deals especially when they are clearing a product out. I have purchased coffee beans at a tremendous price (2 pounds). Their romaine lettuce is far superior to any I can get in the regular grocery store. They often have "deals" on fruit. It seems to me that thoughtful and frugal people in need of help with their living expenses might find some great ways to feed their families. The biggest problem is the temptation! I say, good for you, Costco!
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10-30-2009 @ 7:13AM
beej44 said...
It is true that shopping at Costco requires constraint and a grocery shopping list. However, accepting food stamps is a great decision for Costco to make.
There should also be classes or ideas or menus (like Wegmans Supermarket) for preparing meals. Staples like Rice, pasta seasonings, canned tuna, cereals, canned tomatoes, ground turkey, large packages of fish and chicken can provide healthy meals for all families on foodstamps or not with tremendous savings.
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10-30-2009 @ 7:17AM
Jeanette said...
COSCO requires a membership fee. Where are the people who receive foodstamps getting the membership fees from. Aside from that COSCO will only take AMEX or a Debit card from other shoppers...they should include credit cards too.
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