How Much Should I Spend on Groceries
It is well known that budgeting is an effective way to save money on groceries. However, budgeting for groceries and allocating money for groceries depends on several factors. The U.S. Department of Agriculture (USDA) recommends considering the following factors when planning your grocery budget.
- The number of people in your household
- Each person’s age and gender
- The household budget for each month
It doesn't matter if you follow them all or only a few, you'll end up saving hundreds or even thousands of dollars on food each year. A suggested grocery budget is provided by the food plan cost guide of the U.S. Department of Agriculture based on three different levels of spending: low, moderate, and liberal.
How Much do Groceries Cost per Month
Average Monthly Food Cost for 1 Person
In general, for a single adult, the amount spent on groceries per month should range from $229 to $419, based on age and gender. (A USDA estimate for men is higher, while an estimate for women and men over 71 is lower).
Average Monthly Food Cost for 2 Person
Two people's grocery bills are slightly higher than those of a single person. There are, however, some differences in ages and genders. The average cost of groceries per month in a typical household of a man and a woman between the ages of 19 and 50 will be approximately $477 in the most frugal manner and $763 if they're spending more freely. Similar couples aged 51-70 spend about $430 to $713 on groceries each month.
Average Monthly Food Cost for a family of 4
If you want to save money on groceries, the USDA's "thrifty" food plan is a great choice. The plan recommends spending $887 per month for a family of four – which includes an adult couple aged 20 to 50, and their two children between 6 to 8 and 9 to 11 years of age. According to government research, the average person spends between 10-16% of his or her income on all food (grocery shopping and dining out). The amount people spend on groceries varies depending on their family size and income level.
Determining Your Monthly Grocery Budget
Considering your overall household budget is important before deciding how much to spend. A family budget planner may be helpful in gathering all your financial information in one place in order to gain a better understanding of how your money is spent. This worksheet is helpful for understanding your family's spending habits, regardless of the size of your family or your income. Here are some items you might include in your budget:
- Utilities for households
- Mortgage or rent
- Cell Phone bills
- Health insurance, if not employer-sponsored
- Transport, such as car insurance and payments or public transportation passes
- Monthly Subscriptions for storage, streaming, etc.
By having an idea of what your family spends every month, you are in a better position to create a food budget to determine where you can save or splurge. Using the food budget, you can track your household's food expenses based on category, location, and date. It can be tricky to save money on grocery shopping, but it is possible to do so in several ways. Stay on track with your spending habits by reviewing them periodically to see what works best for you. Financial awareness can make a big difference in your family's life.