Your grocery bill can add up fast. From dinner entrées to snacks, the amount you spend directly affects your other financial goals. Luckily, there are some guidelines to ensure you’re not overspending.
Use the grocery calculator below to estimate your monthly and weekly food budget based on guidelines from the USDA’s monthly food plan. Input your family size and details below to calculate how much a nutritious grocery budget should cost you. Of course, every family is different. Some love coupons and leftovers, while others prefer fresh fish and aged cheese. Once you’ve established your budget, use the slider to adjust your estimate to your spending habits.
Getting your food budget on point takes practice. With this grocery calculator and the right spending habits, you’ll have enough for your living expenses and exciting financial goals like paying off loans or buying a house.
A moderate grocery budget will run you:
What kind of spender are you?
Does your estimate look right? If your spending habits don’t add up, explore these other budget options and choose what’s best for your lifestyle.
Thrifty This is the USDA’s estimated food budget for families that receive food assistance like WIC or SNAP.
Cost-Conscious This is an ideal budget for nutritious meals if you’re looking to save a little extra cash with leftovers and coupons.
Moderate This is the standard for affordable, nutritious, and balanced portions for most families.
Generous This budget gives you some spending wiggle room for finer foods or extra portions.
Monthly Grocery Budget
Ever wonder how much you should spend on groceries? The average cost of food per month for one person ranges from $150 to $300, depending on age. However, these national averages vary based on where you live and the quality of your food purchases.
Here’s a monthly grocery budget for the average family. This is based on the national average and likely varies by location and shop. For instance, New York City grocers are going to be far more expensive than Kansas City shops. Additionally, organic grocery stores like Whole Foods are pricier than places like Walmart or Aldi.
You’ll also want to consider dietary choices, like gluten-free or vegan diets. These can significantly affect your budget, so consider planning your grocery list online to compare prices and find your preferred alternatives.
Finding a reasonable monthly grocery budget ensures you and your family have what you need, while not overspending. Look back at previous months using a budgeting app or credit card statements to see what you’ve spent at the grocery store. Decide if you want to maintain your current budget or cut back.
Purchasing Groceries vs. Dining Out
Don’t forget what you spend at restaurants when you consider your food budget. According to the U.S. Department of Agriculture, Americans spend 11 percent of their take-home income on food. It doesn’t all go towards groceries, though. Approximately six percent is spent on groceries, while five percent is spent dining out — including dates, lunches with coworkers, and Sunday brunch.
With this framework in mind, you can calculate your total food budget based on your take-home income. For example, Rita makes $3,500 per month after taxes. She would budget six percent for groceries ($210) and five percent for restaurants ($175). So she’ll need a total of $385 for food each month. With a little practice, she’ll better learn her habits and be able to accurately adjust her budget.
Tips for Reducing Your Budget
There are several ways to cut back on what you spend without sacrificing the quality and taste of your food. Trimming your food budget can help you stow away more for your financial goals, such as building an emergency fund or saving for a dream vacation.
Coupons are easy to find in the mail, in store, in your inbox, and even in a Google search. Many popular grocery stores are rolling out apps that track your coupons and savings. Be sure to download and register your email for new updates and sales. These usually work in person or online, so you can shop when and how you like.
While a single coupon might not give you a large discount, you can save a lot with multiple coupons. It’s also important you make sure you actually need the item you’re purchasing instead of buying it for the sale. This can quickly get out of hand and push you over budget.
Freeze Your Food
Freezing your fresh food before it goes bad helps your wallet and the environment. You can plan ahead and freeze prepared produce to save time on weekday cooking, or chop and freeze last week’s produce before shopping for more. Frozen vegetables are great in soups and stews, and you can use frozen fruits for healthy breakfast smoothies.
Plan a Weekly Menu Ahead of Time
Plan your meals ahead of time to determine the food items and quantities you need before you head to the grocery store. This way you’re more likely to buy the exact items you need and can plan for breakfast, lunch, and dinner. Try to plan for recipes that use the same ingredients so there’s less to purchase. You can also make larger meals and plan leftovers for lunch so you have less to plan and purchase.
Bring Lunches to Work
A $13 lunch out might not seem like much, but it can blow your food budget fast if it becomes a habit. Push your monthly food budget further with delicious lunches from home. Salads, sandwiches, and leftovers are all easy, inexpensive, and nutritious.
Buy Store Brands
Many packaged products have a huge price disparity between brand name and generic items, and store brand items tend to be cheaper without sacrificing much quality. You can easily save 10 cents to a dollar per item, which adds up quickly over many trips.
Shop at a More Affordable Store
Your local farmers market, chain grocery, and organic store will all offer different specialties and sales. Check out the different shops in your area to find the best combination of quality and price. Some stores might even offer bulk items — great for your favorite products and those with a long shelf-life. Choosing cheaper staple items like milk and yogurt can also make a huge difference over time.
An accurate food budget that works for you helps you feel more confident and in control of your finances. Build a budget, learn your spending habits, and keep a grocery list to keep you on track and responsible so you can reach bigger goals, like a new vehicle or a down payment on a house.
Sources: USA Today | EurekAlert | Persistent Economic Burden of the Gluten-Free Diet