Groceries make up a huge part of a household's monthly spending. You feel the squeeze when prices go up, and it makes shopping more challenging. Even in the best of times, it's a good idea to review your spending and create a grocery budget that works for you. With some planning and a little number crunching, you'll know how much to spend every month, which can help you feel more confident about your household budget. Here are some tips for grocery shopping on a budget.
Assess your needs
What is a realistic grocery budget? There's no one-size-fits-all for everyone, but some factors may make your budget higher or lower than your neighbor's. For instance, larger families may need to spend more than a household of one or two. If a family member has dietary restrictions or allergies, or if you're trying to incorporate changes to your diet, the types of products you buy may affect your budget. A good place to start is with the basics.
- The number of people in your family
- The meals you'll need each week
- The portions of the meals
- Essential versus optional purchases
To assess your needs, start by reviewing current spending. Consider tracking your shopping and meals for a month to get a good picture of where you are now. This will also help you understand what is necessary and what isn't. Learn more about financial planning basics to help you create new habits.
Create your grocery budget
A budget is a tool to help track income and expenses and provide a snapshot of your spending over time. Your grocery budget is just part of a monthly budget. A monthly budget should also include expenses such as your rent, mortgage, utilities, credit card bills, retirement savings and student loan debt. There are a number of online budgeting tools to help manage your money and get your budget on track.
An overall understanding of where your money goes each month can help you take a more realistic approach to grocery budgeting. Once you've run the numbers, you may find extra money to add to your budget. Or you may find that you'll need to cut other discretionary spending — like dining out or subscriptions — to help boost your grocery budget. Explore 10 easy steps for living on a budget that can help.
It's normal to ask, how much should I spend on groceries? The USDA has general guidelines for grocery spending based on different budgets. In its 2023 report, the costs for a family of four with two pre-teens and two adults are:
- Low-cost plan: Around $1,100 per month.
- Moderate-cost plan: Around $1,360 per month.
- Liberal plan: Around $1,665 per month.
If you're unsure how to budget for groceries, these guidelines can provide a baseline. They can also help determine how much money you must budget each week to purchase groceries.
Want more on better budgeting? Check out 5 ways to better manage your spending.
Research prices and promotions from different stores
Today, many grocery stores send out weekly fliers or have email list signups and apps. These tools help you compare prices and promotions in your area and make informed decisions. Review sale prices and promotions before planning your weekly meals and see where to get a great deal. For example, a special on chicken thighs may be a better bargain than buying the more expensive pork chops you planned to purchase. If you plan rigidly first, and then shop, you may miss out on potential savings. Flexibility can help you maximize your grocery budget while providing healthy and filling meals at home.
Buy in bulk
There's a reason why so many big bulk stores have grown in popularity lately. For some food items, they offer great deals. The key to buying in bulk is to plan carefully. It's easy to go into one of these stores and blow your grocery budget. Start by looking at the non-perishable and pantry items, like pasta, rice and canned goods. Compare the per unit cost of buying larger packs to individual items in the local grocery store. For example, an eight-pack of black beans that costs $9.99 in bulk saves you a few dollars compared to buying eight cans at $1.50 each. If you buy in bulk, plan to reflect it in your budget. You'll probably spend more that month than your regular grocery budget, so keep that in mind before shopping.
Use coupons and reward programs
Many stores now offer loyalty programs, with weekly deals on specific higher-priced items. And some offer digital coupons on their websites or in an app, giving you a chance for extra savings. Watching when rewards programs have specials can help maximize your grocery budget while gaining loyalty points. Look for reward programs outside your grocery store, too. Some offer cash-back savings you can apply to food. As with bulk shopping, be careful about what you're buying. It's easy to buy unnecessary items because it seems like a good deal. Stick to what you know is essential to your grocery list.
Understand the store layout
Grocery store layouts try to convince you to buy more. To help avoid impulse buys, stick to your list and review your store's layout. Try to avoid budget-busting aisles, such as chip and soda sections. Food placement on the shelves is another thing to look for while you shop. Generally, more expensive items are at eye level. In contrast, the store label and generic brands are often on the lower shelves. Don't be afraid to dig a little to the back of the fridge or bottom of the produce pile. Stores tend to put older items that will expire sooner near the front and back-fill with the newer items that may last longer from the date you purchase it.
Buy seasonal and local produce
Seasonal produce is often fresher and more budget-friendly. That's why the price of strawberries is so high in December. If you know what produce is in season each month, you can get a lot of fresh, healthy produce and stay within budget. Plus, depending on where you live, purchasing local produce can help farmers and growers in your community. If your area has a farmer's market, consider visiting it and comparing prices.
The USDA has a seasonal produce guide. This chart highlights what fruits and veggies are available for each season. As you create your meal plans, remember what's in season, which can help stretch your budget and add more healthy veggies to your meals.
Buy store-brand and generic products
Buying store-brand and generic items can mean huge savings. It's a great way to make your grocery budget last longer. And you don't need to sacrifice quality. The same big manufacturers often make store-brand and popular name-brand items. And store-brand items undergo the same testing and quality control regulations. Choosing store-brand items can help you save quite a bit of money. Apply those savings to buying more food or a treat here and there to reward yourself for sticking to a budget.
Try meal prepping
Another way to help with grocery budgeting is through meal prepping. Meal prepping is making meals ahead of time. For busy people with limited schedules, it's one way to reduce the emotional and financial stress of worrying about what's for dinner. Meal planning and prepping go hand-in-hand. Reviewing your coupons and specials and planning what you will make for the week can make shopping and staying within budget easier. Prepping and planning helps reduce impulse buys, allows you to buy in bulk and cook in big batches that provide leftovers for future meals. Plus, if you're trying to eat healthier, it's easier to stick with the meal plan and avoid the temptation of takeout.
Minimize food waste
Another way to help stretch your grocery budget is by minimizing food waste. Produce left on the counter or leftovers forgotten in the fridge and tossed is money down the drain. Food planning and meal prep can go a long way toward reducing food waste. As you set your plan for the week or as the seasons change, think about canning or freezing to help extend shelf life. Leftovers are another hidden way to extend your budget. If only one serving of something is left, freeze it instead of tossing it. Or see how you can use it to help make a new and different meal. Save extra bits of veggies to throw in a soup or chili, for example.
Key takeaways
With high grocery prices, ensuring you hit your budget is not easy. But these strategies can help you maximize your budget, eat healthier and enjoy your favorite meals. If you want to get more out of your grocery budget, consider the following:
- Plan and prepare your meals based on deals and savings at your grocery stores.
- Buy non-perishables and canned items at a better unit cost at big bulk stores, but plan for it when you do.
- Shop smarter by avoiding impulse areas at the store, keep your eyes peeled for generic brands, and buy what's fresh and in season.
Want to learn more about planning and budgeting toward your financial goals? Discover some basic personal finance considerations.
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