How to save money on groceries

Food makes up a big part of most people’s budget, so it’s often mentioned as a prime opportunity for trimming expenses. Spend more time cooking at home and less time eating out is a common refrain. And while that approach can certainly save you money, grocery shopping can get expensive. Enter the grocery budget.  

Managing a grocery budget takes a bit of time and effort, but we’ve got your back. Let’s look at the average amount that people tend to spend at the grocery store and 11 tips for how to save money on groceries.

Groceries on a budget: How much should you be spending?

As you work to develop better money habits — including saving money on groceries — it may help to start with an idea of what other people spend. Groceries cost the average consumer unit about $6,053 each year or about $504 a month, according to the most recent Bureau of Labor Statistics data. (Consumer unit is just a fancy term for families, individuals, or two or more people who live together and share expenses.)

This number provides a good starting place for a spending comparison, but each family’s grocery bill will look different. Individuals may spend less, while households with more adults or kids may spend more.

You can also check the U.S. Department of Agriculture’s (USDA) four food plans that represent a healthy diet at four different cost levels. Each plan includes estimates for how much you might spend per person each month for each plan.

Saving money on groceries: 11 ways to trim your food grocery bill

Manage your grocery budget with these easy and effective tips:

1. Avoid pre-packaged items: Pre-cut, pre-packaged, pre-made: Yes, these items can be convenient, but they often carry a big mark-up and may be less healthy. Choose a fresh head of lettuce instead of prepackaged salad. Or slice your own mushrooms instead of buying them pre-sliced. Another advantage: Fresh foods that haven’t been chopped or pre-made may last longer.
2. Make—and stick to—a list: Making a grocery list can help you avoid impulse buys that drive you over your budget. Before heading to the store, do an inventory of what you already have at home, so you don’t double up on unnecessary items. It’s also helpful to consider meal prep when making your list. Meal planning lets you decide what to buy before heading off to the grocery store.
3. Shop alone: Bringing children or partners along on your shopping trip can force you to manage competing desires and increase the likelihood that you’ll deviate from your list. Shop alone and you can avoid contending with other people’s impulse buys.
4. Use shopping apps wisely: The convenience of shopping for groceries through an app is tempting. But there could be higher costs for delivery. That said, using a shopping app can help you estimate the size of your bill before you walk into the store, which can help you stick to your grocery budget.  
5. Buy generic labels: You’ll pay a premium for brand name food items. Try generic brands, which cost less and may taste the same. Even if you don’t always buy generic, using it for part of your shopping list can help you save.
6. Pay attention to unit price: The unit price shows how much an item costs by some measurement of weight or volume, such as ounce, gram, pound, or quart. It’s usually printed on the price display for the item and helps you compare prices among different package sizes. One brand may offer a lower unit price for the same sized item as another brand. Or you may find that unit price decreases as you buy larger sizes.
7. Consider a wholesale club membership: Wholesale clubs sell food in bulk at low unit prices. Be careful to only buy bulk items that you’re sure you will consume to avoid food waste and that you have room to store. While buying in bulk may increase your bill at the outset, it can save you money in the long run.
8. Consider curbside pick-up: If you always battle the tendency to make impulse purchases, consider curbside pick-up. It ensures that you only get the items that are on your list. Some stores may charge a small fee, but others may offer this service for free.
9. Shop in season: Buying produce out of season will cost more than average since these items have been shipped from far away or stored for a long time. For these reasons the food you buy may not even be at its peak. Buy in season and your wallet and taste buds may thank you.
10. Eat more plants: In general, meat is more expensive than fruits and vegetables. Consider working more plant-based meals into your week to trim the amount you spend on protein. You might find you like the colorful food and the lower price for your meals.  
11. Stick to the store perimeter: The interior aisles of a store tend to be filled with processed foods, which cost more. The outer walls, on the other hand, are where fresh fruits and vegetables, and unprocessed dairy and meats are located. These are cheaper and frequently healthier for you. Also, because stores know that foods placed at eye level get more attention, they tend to place their priciest items there. Look for less expensive items on lower and upper shelves.

How Spruce can help with your money management

In addition to the money saving tips above, taking advantage of ways Spruce can help you be better with money with features like saving goals, overdraft protection of up to $20^{Disclaimer number6. Go to disclaimer for more details.} and getting paid up to two days early ^{Disclaimer number2. Go to disclaimer for more details.}. From saving money on groceries to tools to help you budget, we’re here to support you on the path to better money habits.

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This information provided for general educational purposes only. It is not intended as specific financial planning advice as everyone’s financial situation is different.