8 Ways to Save Money on Groceries This Year
Key takeaways:
The average monthly grocery bill ranges from $155 to more than $400. And food preferences, age, gender, location, and inflation all affect the bottom line.
You can compare store prices and buy items on sale to save money.
And joining a loyalty program and downloading savings apps can help you get more deals so you can afford your favorite grocery items.
Saving money on groceries is a priority for many people, especially when prices rise due to inflation.
If you have multiple people in your household, the cost of groceries can be an even bigger concern. So, before you go grocery shopping, it’s a good idea to write down your needs and identify ways you can reduce your bill.
How much does the average person spend on groceries per week?
In the U.S., the average cost of weekly groceries ranges from $35 to over $100. That adds up to $155 to more than $400 per month, depending on various factors, including:
Age
Dietary restrictions
Gender
Geographic location
Inflation
Lifestyle
Number of people in a household
Type of food purchased
Discover a simple way to manage diabetes
Patients can use GoodRx to save up to 40% on OneTouch Ultra Strips.
According to the Consumer Price Index, the following types of foods increased in price from December 2021 to December 2022:
Cereals, bread, and baked goods (16.1%)
Milk, cheese, and other dairy products (15.3%)
Nonalcoholic beverages, like soda (12.6%)
Fruits and vegetables (8.4%)
Food plan categories
The U.S. Department of Agriculture (USDA) categorizes food plans into four categories: thrifty, low-cost, moderate-cost, and liberal. The below table shows the average weekly food costs by age group for three of these food plans, as of December 2022.
Age | Low-cost plan | Moderate-cost plan | Liberal plan |
6-8 years | $54.50 | $65.80 | $76.70 |
9-11 years | $58.20 | $75.80 | $88.00 |
19-50 years (male) | $68.20 | $85.60 | $104.30 |
19-50 years (female) | $59.10 | $72.40 | $92.50 |
51-70 years (male) | $64.30 | $80.60 | $96.50 |
51-70 years (female) | $57.70 | $71.60 | $85.90 |
Source: USDA
How can I save money on groceries?
Depending on where you live and what types of foods you buy, groceries can have a major impact on your household budget. Here are eight ways you can save money during your next grocery visit.
1. Buy generic
Generic products are often packed in the same facility as their brand-name alternative. So, by buying generic, you can save money on groceries without sacrificing quality.
Sometimes, you can save as much as 20% to 30% by purchasing generic or store-brand food items. Some examples of items that often have a generic option are:
Canned goods
Frozen fruits
Frozen vegetables
Milk
Olive oil
Tomatoes
2. Buy in bulk
A family of four loses about $1,500 a year on food they don’t eat. Buying in bulk can save you money by reducing waste. And it ensures that you always have enough food on hand.
Buying bulk amounts of nonperishable foods that store well — like whole grains, canned or dried beans, and frozen vegetables — can be especially useful. Other steps you can take to make the more of bulk shopping are:
Review your budget or shopping list to determine the items you buy often.
Determine if you can save money by purchasing those items in bulk.
Identify stores that offer bulk purchases at discounted prices.
3. Buy items on sale
Before you shop, be sure to check out grocery stores’ weekly sales fliers. You can typically find these midweek:
At store entrances
In the newspaper
On grocery company websites
On social media
You can also clip coupons and take advantage of store specials for the things you buy often. Make sure you know how much your favorite items usually cost. This way, you’ll know when you find a good deal.
4. Check the price per unit
When you’re buying groceries, look at the price per unit of items, not just their overall price. You can find this listed on the sticker next to an item, under “unit price.”
Often, an item with the lowest overall price is not the best deal. For example, a box of cereal that costs $4 may not be a better buy than one that costs $5. When you look at the price per unit, the $4 box might come out to about 33 cents per ounce, while the $5 box comes out to about 31 cents per ounce. If you choose the $5 box, you will get more product at a cheaper price, even though the total cost is higher.
When you compare different brands and quantities of food items, you can save more money overall. And you will get the most value for your dollar.
5. Compare store prices
Another way to save money on groceries is to compare prices for items at different stores. If you want to buy golden berries, for example, you can do this by checking online ads for different stores before you shop.
There are also price-check apps that can alert you when grocery prices drop at different stores. These apps help you compare prices across retailers to find the best deals. You can try popular options like Flipp, ShopSavvy, and Price Cruncher, or some grocery store chains even have their own apps with similar features.
Doing this simple step of comparing prices can help you avoid overpaying for groceries and stretch your budget further.
6. Download store apps
Downloading grocery shopping apps can also help you save money. Some of the different ways these apps can help you save money on groceries are:
Alerting you to rebates on specific products
Offering cash back on purchases made through the app
Offering exclusive discounts on specific products at specific stores
Providing digital coupons for groceries
Compiling a list of local weekly ads and coupons from retailers to help you find the best deals
7. Join a loyalty program
A loyalty program is an incentive strategy that stores use to keep customers coming back. These rewards are a way for stores to say thank you for being a good customer.
When you join a store’s loyalty program, you can earn rewards or discounts for shopping there. For example, you might get a coupon for a discount on your next purchase or earn points for every dollar you spend.
8. Use credit cards that offer cash back at grocery stores
Many credit cards offer rewards or cash back on grocery purchases. And some cards offer bonus rewards or cash back when you buy specific items.
To maximize savings, it’s a good idea to use a credit card that offers rewards that match your spending habits. But be sure you can pay off your balance in full each month to avoid interest charges.
What items should I buy if I’m grocery shopping on a budget?
When shopping on a budget, consider buying the following items:
Canned goods: Foods such as canned soup, tuna, and chicken can be budget-friendly options.
Cereals: Hot cereals like oatmeal are rich in fiber and can help you stay full longer.
Chicken and turkey: These lean protein sources are affordable alternatives to other meats.
Eggs: These versatile sources of protein can be prepared in many different ways. However, you may want to use them sparingly when prices are high.
Frozen fruits and vegetables: Frozen produce options are often cheaper than their fresh counterparts and have a long shelf life.
Ground beef: Often less expensive than other cuts of meat, ground beef can be used in many dishes.
Low-fat dairy: This includes milk, yogurt, and cheese.
Rice, beans, and pasta: These pantry staples are filling and relatively cheap.
Whole grains: Opt for bread, cereal, rice, and pasta made from whole grains. And keep in mind that brown rice is less expensive than white rice.
What grocery stores have the best prices?
Discount grocery stores such as Albertsons and Aldi often offer low prices on a wide range of products. And warehouse clubs like Costco and Sam’s Club sometimes have lower prices on bulk items. However, prices can vary depending on location, current promotions, and the specific products you want to buy. So it’s always wise to compare prices at different stores in your area to determine the best deals.
The bottom line
Saving money on groceries can play an essential part in your family’s monthly budget. And there are many ways to reduce your grocery costs, such as buying generic items, checking the price per unit of items, and comparing prices at different stores.
You can also earn rewards and discounts by joining loyalty programs and downloading shopping apps. By using some of these strategies, you can reduce your grocery bill and have more money for other household expenses.
Why trust our experts?
References
Centers for Disease Control and Prevention. (2022). 6 tips for eating healthy on a budget.
Hillan, J. (2001). Saving money on meals. University of Florida.
Johnson, C. (2022). Report: The best and cheapest grocery stores. Clark.com.
Kelly, K. (2015). Using loyalty programs to attract consumers to value-added businesses. Penn State Extension.
MyPlate. (n.d.). Eat on a healthy budget.
MyPlate. (n.d.). Make a plan.
MyPlate. (n.d.). Shop smart.
U.S. Bureau of Labor Statistics. (2023). Consumer price index: 2022 in review.
U.S. Department of Agriculture. (n.d.). Consumers.
U.S. Department of Agriculture. (2022). USDA food plans: Cost of food reports (monthly reports).
U.S. Department of Agriculture. (2023). Official USDA food plains: Cost of food at home at three levels, U.S. average, December 2022.
U.S. Environmental Protection Agency. (2022). Preventing wasted food at home.
