By Laurel Tincher ·June 30, 2022 · 7 minute read
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Everyone buys groceries, but how much should an individual or household spend on food each month? Food is the third largest expenditure for Americans, and for those looking to cut costs, it can be a place where reductions are possible with some planning and budgeting.
In 2020, Americans spent an average of 8.6% of their income on food, according to the most recent data from the U.S. Department of Agriculture. Everyone is different when it comes to their personal food choices, household, and budget, so it’s difficult to come up with a goal amount for everyone’s monthly grocery bill. However, looking at averages across the country can help one figure out if they are within the range of other people in their region, age bracket, and household size.
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Grocery Bills and Inflation
Inflation can have a big effect on the price of groceries, making it harder to stay within a budget and reduce one’s bill. Over the past year, the cost of groceries has increased by 10.8% . Some foods, such as meat, poultry, and eggs, have risen by 14.3%. This increase is partly due to inflation and partly due to food shortages caused by the COVID-19 pandemic.
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Average Monthly Grocery Budget Bill for One Person or More
There are several factors that determine how much a person might spend on groceries each month. These include age, gender, how many people live in the household, and monthly budget. Another major factor is the region one lives in. Some areas have much more expensive food than others.
The most expensive city for groceries is Honolulu, Hawaii, where the monthly average grocery bill is $556.76. The least expensive city is Manchester, New Hampshire with an average of $183.00, according to Move.org. Other expensive states include Vermont, Alaska, and New York, while less expensive states include Kansas, Idaho, and Utah.
In addition to groceries, one’s overall monthly bill for food includes any snacks and meals eaten out. The averages below are based on an individual or family cooking all their meals and snacks at home, they don’t include meals eaten out. Averages look at foods many people commonly purchase, such as eggs, dairy, meat, bread, and produce items.
| Family Size | Average Grocery Bill |
|---|---|
| 1 | $229-$419 depending on age and gender. Men and younger people have a higher average. |
| 2 | For a household with two people, the average grocery bill doubles to $458-$838. If a household consists of one adult and one child their bill is likely less than a household with two adults. Averages for children vastly vary depending on the age and gender of children, location, and budget. For each child under 12 added one can estimate an additional $143-$357 in their bill. If teenagers are in a household one can expect to add an additional $233-$344. |
| 4 | Averages for a family of four are based on two adults between the ages of 20-50, and two children, one aged 6-8 and one aged 9-11. The average grocery bill is $887 per month. |
Particular Foods That Are More Expensive Now
As briefly mentioned, in the past year, some foods have risen in cost more than others, due to issues in the supply chain. These include meat, fish, eggs, and poultry.
Buying Groceries vs Dining Out
It’s up to each individual and family to decide how often to eat out or get takeout food and how much of their money to spend on dining at restaurants. In general, eating out tends to cost more than cooking at home, and it’s a good idea to keep track of and budget for or it can add up quickly. The USDA recommends spending about 4% to 5% per month on dining out. A couple ways to help save money on eating out are to pick up food instead of having it delivered, and to find discounts and loyalty programs for local restaurants.
9 Tips for Reducing Your Grocery Bill
In looking at the average grocery bills above, one might start to think that they are spending too much on groceries, if they didn’t already feel that way before. Here are a few tips for lowering one’s monthly grocery bill.
1. Make a Budget and Plan Ahead
Allocating funds for groceries in a monthly budget planner then making a plan for what to buy can help reduce one’s grocery bill. Meal planning and shopping lists can help with sticking to the plan.
2. Look for Discounts and Sales
There are many discount apps and coupons available for those who are grocery shopping on a budget. They are free and can help with reducing one’s grocery bill. However, some coupons can be tricky and actually cause additional spending, if they ask one to purchase two or more of an item to get the discount or they result in buying an item that wouldn’t have been purchased otherwise. Some stores also have sale days, especially after a big holiday, so those can be good days to go shopping.
3. Don’t Shop on an Empty Stomach
Avoiding impulse buying is another way to reduce one’s grocery bill. Studies have shown that shopping on an empty stomach leads shoppers to spend more and to buy high calorie foods that may be less healthy.
4. Consider Meal Kits
Although meal kit services may appear expensive, and some are, if they reduce the amount that one eats out at restaurants or the amount spent on groceries, that is a plus. Meal kits provide pre-portioned meals, so they prevent buying extra ingredients that go to waste.
5. Pay Attention to Delivery Fees
Having groceries delivered can be a great way to save time, and since it can help with sticking to a plan and grocery list, it can also help prevent impulse buys. However, delivery fees and tips can add up, so it’s important to factor those into monthly budgeting.
6. Shop at a Different Store
It can be easy to fall into a pattern of shopping at a certain grocery store due to convenience or their offering of foods one likes. But if that store has higher prices, it may be worth considering going to a different store for some or all of one’s groceries.
7. Create a Routine
Another way to stay on top of grocery budgeting is to create routines. This can help with sticking to a shopping list and making sure extra food doesn’t get purchased.
8. Buy Generic Brands instead of Name Brands
Many stores carry their own brands of food that are cheaper than big name brands. These items are very similar in taste and quality but have a lower price point.
9. Shop More Often
It may seem surprising, but going to the grocery store more often can help people spend less money than if they go on mega runs. The reason is that it avoids food waste because it’s easier to think about what will be eaten within the next few days than the next couple weeks.
The Takeaway
Since there is more flexibility in buying groceries than other expenses such as rent and other bills, cutting back on grocery spending can be a great way to save. If you’re looking to start making a budget, setting savings goals, or paying off debts, one money tracker tool to use is SoFi. The online app lets you connect all your banking and investment accounts so you can easily see what you are spending and saving all in one dashboard. You can create goals and set up automated savings and investments to secure your financial future.
FAQ
How much should you be spending on groceries a week?
The average cost of groceries for U.S. households is $102 per week. This varies greatly by location, age, and number of people in one’s household.
What is the average cost of groceries per month?
The average cost of groceries for U.S. households is $411 per month.
Examples of Popular Discounted Grocery Stores
Popular discounted grocery stores include Walmart, Smart & Final, Sam’s Club, and Trader Joe’s.
Photo credit: iStock/andresr
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As an expert in personal finance and budgeting, I'll delve into the key concepts discussed in the article by Laurel Tincher from June 30, 2022, related to managing grocery expenses. The article provides valuable insights into determining an appropriate budget for groceries, understanding the impact of inflation on food prices, and offering practical tips for reducing grocery bills. Here's an in-depth analysis:
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Average Spending on Groceries: The article addresses the question of how much an individual or household should spend on groceries each month. It highlights that, in 2020, Americans spent an average of 8.6% of their income on food, according to the U.S. Department of Agriculture. The article emphasizes the variation in personal choices, household size, and location when determining an ideal monthly grocery budget.
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Inflation and Grocery Prices: The impact of inflation on grocery prices is discussed, with a notable increase of 10.8% in the cost of groceries over the past year. The article attributes this rise to both inflation and food shortages caused by the COVID-19 pandemic, affecting items such as meat, poultry, and eggs.
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Regional Disparities: The article underscores the significant role of location in determining grocery expenses, stating that some areas have much more expensive food than others. It provides examples of the most and least expensive cities for groceries, such as Honolulu, Hawaii, and Manchester, New Hampshire, respectively.
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Factors Affecting Grocery Budgets: The article outlines several factors that influence how much a person might spend on groceries, including age, gender, household size, and overall monthly budget. It breaks down average grocery bills for individuals, households of two, families with children, and families of four.
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Impact of Food Shortages: The article briefly mentions that certain foods have become more expensive due to issues in the supply chain. It identifies meat, fish, eggs, and poultry as examples of items that have experienced a significant rise in cost.
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Eating Out vs. Cooking at Home: The article discusses the financial implications of eating out versus cooking at home. It suggests that eating out tends to cost more and provides a recommendation from the USDA to spend about 4% to 5% per month on dining out.
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Tips for Reducing Grocery Bills: The article offers practical tips for individuals and families to lower their monthly grocery bills. These include making a budget and planning ahead, looking for discounts and sales, avoiding shopping on an empty stomach, considering meal kits, paying attention to delivery fees, exploring different stores, creating routines, opting for generic brands, and shopping more often.
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Financial Tools for Budgeting: The article recommends using financial tools like SoFi for tracking credit scores, budgeting, and setting savings goals. It introduces SoFi as an online app that allows users to connect all their banking and investment accounts in one dashboard, facilitating better financial management.
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FAQ Section: The article concludes with a FAQ section, addressing common questions such as how much one should spend on groceries per week and per month. It also provides examples of popular discounted grocery stores.
In summary, Laurel Tincher's article covers a comprehensive range of topics related to managing grocery expenses, incorporating statistics, practical advice, and recommendations for individuals and families to make informed financial decisions.
