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Colored mulch can be bad for plants in that it robs them of nitrogen as it depletes the soil to break itself down. With this in mind, it’s a good idea to test your soil to check the nitrogen levels. If the nitrogen levels are low, use fertilizer with extra nitrogen or switch to regular mulch.

Another downside of colored mulch is if it’s heavily contaminated, it can contaminate the soil and damage your plants. To avoid this, look for the MSC certification logo on the mulch bag before purchasing.

You should use mulch because it protects garden soil in a few key ways. This extra layer between the ground and the elements protects against erosion, helps your soil maintain moisture, regulates changes in temperature, adds nutrients as it decomposes, and keeps weeds at bay.

Stump grindings are usually safe to use in soil, but in some cases, it’s not recommended. Wood chips in particular can bind nitrogen in the soil, which will make it difficult for grass to grow. That’s why it’s important to remove most wood chips and use healthy garden soil if you want to cover the stump spot with grass. Large wood chips may attract beetles and could encourage the growth of fungi when they decay, so you may want to remove them when using the grindings.

It depends. High-end colored mulch can be fairly costly. However, you'll have to replace less-expensive natural mulches, like pine needles and cedar mulch, more frequently. 

The cost is balanced out somewhat, though, as although you'll have to replace colored mulch less often, you'll have to replenish nutrients in your soil more frequently to make up for the decrease in organic matter and nitrogen from the mulch.