How Much Should I Spend on Groceries?

SHORT ANSWER: How much you should spend on groceries depends on your family size and budget, but aim for less than 15% of your total income. The tips below can help. 

For most families, the grocery budget is one of the biggest expenses after housing. It's also highly personal. What you eat, when you eat it and what foods bring comfort, celebration or elicit special memories is unique to each family. But with rising food costs and many families trying to eat out less, managing your budget effectively becomes more important. 

Figuring out how much you should spend on groceries isn’t usually very straightforward, but with the steps below, you can create a grocery budget that works for you. 

What Is the Average Cost of Groceries Per Month?

According to the U.S. Department of Agriculture (USDA), the average cost of groceries varies by family size and budget. It outlines an average budget for a family of four of $975.30 monthly. However, the recommendations consider the cost of a nutritious diet for a range of families at various income levels, genders and ages and for differing family sizes.

These numbers don't necessarily reflect how much families spend; instead, they are ideal ranges for a healthy diet. The plans range from $241 to $455 for a single adult. For a couple, the range is from $596 to $945, and for a family of four with two elementary school-aged children, the range is from $969 to $1,578.

How Much Should I Spend on Groceries?

If you are working to cut costs while creating a nutritious diet for your family, the USDA food plans offer guidelines for weekly and monthly spending estimates. The USDA plans are divided into a "thrifty plan," a "low-cost plan," a "moderate-cost plan" and a "liberal plan.” Here is how each of those plans looks:

You can use these guidelines to calculate how much should be spent on groceries. For example, if you have a family of four, you might aim for a weekly budget of $243, calculated by dividing 12 months' low-cost budget into 52 weeks. Of course, some weeks may be more or less as you stock up on grocery staples that last weeks or more. 

Is $50 per week enough for groceries? It's tight, but it could be possible for a single adult to live on $50 per week. You would need to focus on low-cost whole foods to make it work (and not live on ramen or mac-and-cheese). You can do this by shopping at farmers' markets or grocery stores known for lower prices, such as Aldi or small ethnic grocers.

Other Factors to Consider When Determining Your Spend on Groceries

Other factors to consider when determining your grocery budget include:

• Your overall budget: If you have a higher income, you might have more room to splurge more on groceries while balancing your budget. 
• Health concerns: If you have a health issue, you might need to spend more on groceries. For example, if someone in your family has celiac disease, sourcing gluten-free specialty items can add to your budget. 
• Other financial goals: Consider your total financial situation. If you're saving for a special goal, reducing your grocery budget can help you save more. Getting creative with using what's in your pantry can go a long way. 

Tips to Stay Within Your Grocery Budget

Practical tips on saving on groceries and staying within your budget include tracking all your expenses and then looking at where you can save more. Here are some tips to get started:

Track expenses

Knowing what you buy in a typical month and what you buy each week is the starting point of any grocery budget. How much are you currently spending? What are your necessities, and what are your indulgences? Do you have food that goes to waste? You can write down everything or use a budgeting app or expense tracker. 

Implement the 50-30-20 principle

The 50-30-20 principle means you spend 50% of your after-tax pay on needs, including housing, transportation, food and utilities, 30% on wants and 20% on savings. In the case of food, you can put a portion of the 50% toward your food budget and use some of the 30% toward special foods or dining out. 

Remove what you don't need

After you know what you currently buy, decide what can be removed. Maybe that's produce or dairy that goes bad before you use it, or it could be nonessentials like alcohol or snacks. Learn more about how to cut expenses or how to stop spending money. 

Set a monthly spending cap

Based on your average spending and what you can eliminate, you can set a monthly spending cap based on your income, location, household and other savings goals. If you have extra at the end of the month, you can use it for extra treats or savings.

Shop seasonally

Buying produce in season can help you save significantly and eat fresher and more flavorful produce. Look for farm stands or farmer's markets to save more. 

Check low-cost stores

Wal-Mart, Costco, Aldi and other low-cost stores can help you save on bulk purchases or get common items for less. Local ethnic stores also often have the best prices on produce, grains and unique sauces to fill out your meals. 

Buy in bulk

Buy grains, beans, nuts, peanut butter, flour, snack mixes and cereal in bulk to save more on pantry staples. 

Choose more vegetarian options

Beans are one of any menu's most low-cost and filling menu options. Add more beans and bean-based stews like chili or minestrone, and lean into ethnic foods like hummus, bean tacos, or rice and beans. Whole grains like oatmeal or brown rice also make a basis for hearty, low-cost meals. 

Pack lunches

If you bring food from home, you'll save more than going out. 

Get creative

There's no reason you can't have scrambled eggs and toast for dinner or last night's leftovers for breakfast. Choose healthy options based on what you have in your pantry and fridge. 

Look at the price per unit

This is an objective comparison of how much you're actually paying. This could be listed as price per ounce, pound or 100 grams. 

Use a rewards credit card

If you get a high-rewards credit card, you can earn more cashback or points for experiences or vacations with all grocery expenses. If the average family of four spends over $11,000 per year on groceries, the points can add up. Find the best credit cards for cashback or rewards. 

Don't give up

Even if you go over your budget one month, reset and start again. Over time, you can refine your list, learn where to get the best deals and find new favorites. 

Final Tips for Managing Your Spend on Groceries

If you love to cook, managing your grocery budget can work with most recipes if you're willing to plan and adjust where needed. Don't give up all the food you enjoy. Instead, find ways to make them at home or source ingredients within your budget. To make sticking to a budget easier, plan meals you love so that food goes beyond nutrition and is a source of connection and celebration. Need more saving inspiration? Find three reasons to start saving now, or learn how to save money to start living better.