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Reduce Your Grocery Bill

Posted on 11/27/2007

Dear Dollar Stretcher,
I am just learning how to be frugal. Our grocery bill is outrageous! I am desperate to cut it in half to $400 to $500 a month or even less. We have a family of 6 (children - all boys - ages 8 mo., 2, 6, 8). I would like to know how much everyone else spends for their size family and what they do to keep their grocery bills down.
Thanks!
Debbie

Good question, Debbie! If you're spending $800 to $1,000 each month in groceries, you have definitely found an area where you can save some money. Let's look at this as two separate questions. First, what do other families spend. And then, in our next column, we'll take a look at ways to reduce that bill.

To get a handle on what families spend for food, we went to the U.S. Statistical Abstract. The information is a couple of years old, but it will give us a good idea of what's going on.

According to them, the average family of five or more people spent $6,229 on food in 1992. That included $4,397 for food at home and $1,832 for food away from home. If you've wondered why there seems to be a fast food place or restraunt on every corner that explains it. We spend nearly 30% of our food budgets away from home.

Let's look at some of the areas where we spend our grocery money. Mom always told you to have a good breakfast. On average we spend $271 on cereals and cereal products. That might seem like a lot until you figure how many boxes of 'Toasted, Frosted, Sugared Whatsit' that you can buy for $271. It adds up fast!.

Some of us like baked goods for breakfast. I'm a bagel or muffin person. The average family spends $430 on bakery products. Let's hope that most of that is for breads rather than cakes and cookies!

As you might have expected 'meats, poultry, fish and eggs' make up the largest category at $1,169. Beef weighs in with $385, pork with $256 and the others with smaller amounts.

We're also big consumers of dairy products. $537 goes to cover our daily bills each year. About half is spend for milk / cream and other half for all other dairy products.

We must be getting some balance in our meals. Fruits and vegetables account for $657 in a year for our large family. Mom would be proud.

Finally, we spend about $330 each year for non-alcoholic beverages. Just in case you were wondering, we also spend $213 on alcoholic beverages.

At this point, I'll bet that some of you are wondering if it makes a difference where in the country you live. And the answer is yes. There are some differences. The average family (of all sizes) spends $4,316 for food. If you live in the South, you'll average less. About $4,028. The Midwest is next least expensive at $4,165. The Northeast and West are most expensive at $4,524 and $4,549 respectively.

But how frugal you are makes an even bigger difference. There's a table in the Statistical Abstract for 1994 that tells a fascinating story. It displays weekly food cost for January 1993. The figures are for food purchased at a store and prepared at home.

Debbie's family wasn't represented exactly on the chart so we'll have to do some arithmetic. A family of four (including two adults and two children between 1 and 5) could spend anywhere between $73 and $137 each week for food. For Debbie's family we need to add two children between 6 and 8 years old. Their bill adds $35 to $68 each week combined. So Debbie could expect to pay anywhere between $108 ($73 plus $35) to $205 ($137 plus $68) each week for groceries. If you figure four weeks in a month (yes, we're that lazy!) it works out to $432 to $820 each month for food.

Before we leave the subject, there are probably some of you who have families of different sizes. Let's take a quick look at what their range was. For instance, a family of two spent between $50 and $97. A one or two year old adds between $13 and $23 each week. A teenager is another $22 to $44 per week.

One other interesting fact was that large families (eight or more) actually spent less than smaller families. No explanation was given, but I suppose that larger families were more frugal of necessity.

You know you spend a bundle for groceries. No secret in that! In our last column Debbie asked how she could cut her bill for a family of six in half. Let's see what solutions are available to help achieve that goal.
The first step in reducing your grocery bill is in sound meal planning. Make your menu with grocery shopping in mind. Try to select recipes that use items that are already in your pantry. Remember what foods are in season. They'll be cheaper. Always be on the lookout for recipes that 'dress-up' inexpensive cuts of meat (or don't even require meat).

Have a definite list when you go shopping. Don't impulse buy. If you find an item on sale that you know you'll use later feel free to add it to your cart. But beware of pretty displays that can cause you to overspend your plan. Check the ads before you go to the store. Modify your meal plan and list to take advantage of sale items.

Leave the kids at home with your spouse or a neighbor. Most of us don't have the heart to tell our little angel that she can't have those special frosted cookies in the bakery section. Stores have been known to put tempting treats within a child's reach. If the little hand is not there, it can't reach!

Generally speaking a larger supermarket will be cheaper than a smaller one. That's due to volume discounts. But check the ads. You might find that it's worthwhile doing part of your shopping at one store and finishing up at another. Nothing says that you have to use the same store week after week. It's a good idea to scout out other stores periodically.

While you're shopping don't forget to look up and down. No, I'm not suggesting neck exercises. But stores will often put the most popular and expensive items from waist to shoulder level. The less expensive brands will often be on the lower or upper shelves. It's worth the stretch.

Don't forget to take along a calculator. You'll want to be able to compare unit prices. A less expensive price on a larger size is only a savings if you're going to use those extra ounces. If you'll end up throwing them away, it's not a bargain.

Avoid prepackaged and convenience foods. It's handy to slip a small bag of chips into Junior's lunch box. But it's much less expensive to put a handful into a sandwich bag and have Junior bring it home so you can refill it again tomorrow. There are exceptions, but convenience foods are also often less nutritious, too.

A healthy diet is less expensive than an unhealthy one. Rice, potatoes, fruit and vegetables are all less expensive than meat. Nothing says that you have to be a vegetarian. But it's not healthy or frugal to fill up on meat. You might also save a bit on doctor bills later.

Comparison shop at the meat counter. Look for the less expensive cuts. Oftentimes your cooking skills can make a cheaper cut seem better than it is. Use chicken, turkey and fish. They're less expensive and a great change from beef.

Use coupons only for items that you would buy anyway. If you're used to buying the store brand for 79 cents, don't buy the nationally advertised brand for $1.19 because you have a 20 cent off coupon. Rebates and coupons can be a big help. But think through the math before you 'save' all that money.

Don't buy non-food items at the grocery store. Housewares, pharmacy items, greeting cards and holiday items can all be purchased for less elsewhere. Cleaning supplies can be a big part of the total at the checkout line. Wherever possible buy generic cleaners. Better still, learn how to make your own cleaners. You'll be surprised at the savings.

Bring your lunch to work or school. You can make a great sandwich for the cost of a 'Big Burger' and fries. If you have a microwave available consider bringing some leftovers. You'll find your lunchmates glancing longingly at last night's meatloaf when they get a whiff of your lunch.

Most families enjoy an occasional meal out. Certainly the cook does! But restaurants can be a real budget buster. Dinner is the most expensive meal to eat out. Why not go for breakfast or lunch? If you must go for dinner, be careful about appetizers, alcoholic beverages and desserts. They can bloat a bill in a heartbeat.

Can all of this help Debbie cut her family's grocery bill in half? Only Debbie can know for sure. But it will give her a hand in controlling the food portion of the family budget and stretching those dollars!

The author, Gary Foreman, is a former Certified Financial Planner who currently edits The Dollar Stretcher web site and newsletter.
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