How much should I spend on groceries? And 6 ways to cut costs

Grocery shopping used to be a quick errand. Now it’s: “Wait, how did I just drop $300 and still have nothing to make for dinner?” Whether you're feeding picky toddlers, always-hungry teens, or just yourself, figuring out how much to budget for groceries can feel like aiming at a moving target.

Let’s take a look at how much is “normal” to spend on groceries and how to save some money in the process.

What do most people spend on groceries?

If you’re looking for a ballpark amount you should spend on groceries, the USDA provides a range for grocery budgets based on the number of people in your household, with plans that cover low, moderate, and liberal budgets. For example, the USDA says that if you’re a family of four with two parents, a five-year-old and a 10-year-old, you might spend anywhere from $960 to $1,466 a month.

Instacart has a grocery budget calculator based on the USDA data that will do the math for you. It lets you input the number of people, their ages, and the type of grocery shopper you are. Then, it gives you a target range for your grocery budget.

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What other ways can you figure out what to spend on groceries? “I'd say a good starting point is to aim for around 10 to 15% of your monthly income,” says Andreas Jones, a personal finance expert and founder of KindaFrugal.com.

These are not hard rules, but they do give you somewhere to start. 

Back to the basics: Do you have a budget?

If you are really unsure what you should be spending on groceries, you might want to start with a budget. And if you don’t have a budget, Jones suggests tracking your spending for a bit, just to get a sense of where your money is headed. “Then you can set a realistic budget based on your overall expenses and adjust as needed,” she says. 

It sounds obvious, but a lot of families are trying to stick to a budget without ever setting one. Whether you prefer an app, a spreadsheet, or scribbles on the back of an envelope, just having a grocery budget in place gives you something to stick to. These tips for creating a weekly budget can help you get started.

6 ways to reduce the cost of groceries

We’re not here to tell you to skip coffee or eat the same thing for dinner every night. But small shifts can add up. Here’s what can help.

1. Meal plan and make a list

Meal planning cuts down on those “what are we eating?” moments and saves you from overspending on things you don’t really need. “If you take some time to plan out your meals for the week, you’ll find you’re less likely to grab things on the fly that you don’t actually need,” Jones says. “Making a shopping list based on that plan is also key, as it helps keep you on track and prevents you from overspending on things you don’t use often.”

2. Look for seasonal produce and store brands

Fruits and veggies that are in season are often cheaper and fresher. And, don’t forget about store brands, says Jones. “These tend to be cheaper and often just as good as name brands,” she says.

3. Cut back on high-cost items like meat

One way to save on your grocery bill is to replace expensive items like meat with other options. “Reducing your meat consumption, even just a couple of times a week, can make a noticeable difference in your grocery budget,” says Jones. Plus, there are a lot of plant-based meals that can stretch further and usually cost less per serving. 

4. Buy in bulk when it makes sense

“A simple but effective way to save is buying in bulk, especially for non-perishable items like pasta, rice, or canned goods,” according to Jones. “The upfront cost may feel higher, but over time, it can save you money, and you won’t have to restock as often.” 

So, big packs of shelf-stable pantry items? Great. But a 5-gallon vat of mustard you’ll never finish? Maybe not. Bulk buying saves money when you stick to what you actually use regularly. 

5. Make more from scratch

“You can also try making meals from scratch instead of buying pre-packaged convenience foods. This approach takes a bit more time, but it’s generally cheaper and healthier in the long run,” explains Jones. So, try batch cooking or using leftovers in new ways. Think taco filling turned into next-day nachos or soup.

6. Use loyalty programs and coupon apps

Jones gives us one final tip: “Keep an eye on loyalty programs and discounts. Many stores offer coupons, and loyalty cards can provide access to sales and rewards over time. A bit of time spent tracking deals can really add up.” Plus, you can usually load digital coupons right from your phone, which you most likely have in your hand or your pocket while you’re shopping.

Your grocery budget will never look exactly like your neighbor’s. What you eat, where you live, how many mouths you’re feeding… it all factors in. And grocery prices? Yeah, they’re higher than they used to be. Supply chain issues, inflation, bird flu, weather events; there’s a lot going on that’s making groceries so expensive right now. 

But you do have some things that are in your control: Being intentional. Paying attention. Planning ahead. There isn’t a perfect formula, but if you’re wondering where to start, following the USDA guidelines or aiming for 10 to 15% of your income and adjusting from there is a great place to begin.

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