For many, the biggest pain point in American life since the COVID-19 pandemic has been the rising cost of everyday necessities: rent, gas, and groceries. There’s been a perfect storm of government spending, tariffs, wars, labor disruptions, and supply-chain problems that have made costs rise with no end in sight.
It’s easy for the average American to look at their bank balance just a week after payday and wonder where all the money went and whether everyone else is feeling the same budget crunch. It’s normal to question whether you are overpaying for groceries or doing what’s necessary to get by.
How much does the average American spend on groceries?
A recent report by GroceriesTracker found that the average American grocery bill for a family of four is about $1,430, with bills ranging from $950 to $1,760. It arrived at these numbers using the U.S. Department of Agriculture’s official food plan data, which has four tiers of grocery shoppers, ranging from “thrifty” to “liberal.” The average number chosen by GroceriesTracker reflects how much the average American family spends on the moderate tier.
Of course, these numbers can fluctuate wildly based on where you live, whether you’re in the most expensive state, Hawaii, or the most affordable, Mississippi. It also depends on where you shop, whether it’s at a grocery outlet or an organic store. Families with teenagers are also going to spend much more on food than those with kids in elementary school.
Regardless, your grocery budget has probably steadily (and sometimes rapidly) increased since 2017.
Will inflation end anytime soon?
Unfortunately, trends suggest we will probably never return to 2020 food costs, but inflation should gradually decline to 2 to 2.5 percent over the next year. In simple English, things are going to get more expensive, but not as rapidly as before. A lot of this could change depending on the war in the Middle East, which could drive up transportation and energy costs, leading to more expensive items at the checkout aisle.
How to lower your grocery bills
1. Plan meals before shopping
The USDA says that planning meals helps you save money and choose healthy options. Also, knowing what you need ahead of time can help you avoid overspending.
2. Make a simple list
When you make a grocery list and stick to it, you will be less likely to overspend on impulse buys that you probably don’t need.
3. Use unit pricing to get the best deal
When comparing products, look at the shelf tag below each product. Take a look at the price per ounce, per pound, or per count to get the most bang for your buck. This will tell you whether buying the smaller or larger box saves you the most money.
4. Clip coupons, sign up for loyalty programs
If you’re new to couponing, a great place to start is with digital apps for your local supermarket. There are also plenty of online coupon databases that aggregate coupons. Plus, don’t forget to check your mail and local newspapers for deals in your area.
5. Buy in bulk
With a little pre-planning, you can save around 27% by buying products such as frozen meats, canned goods, and toiletries in bulk at your local warehouse store.
