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Is My Grocery Bill Too High?
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Is My Grocery Bill Too High?
by Gary Foreman
Description: How to take a good look at your grocery bill to see if you are spending too much.
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Hello Gary,
We are a family of four (me, my wife, and two daughters, ages 13 &
16). We live in Orange County, CA. Our average weekly cost for
groceries runs approximately $375 or $1500 monthly. That does not
include eating out. I'm trying to convince my wife that our grocery
bill is excessively high for a family of four even with California's
high cost of living. She feels it's a bit high, but matches up with
most families here. What are your thoughts on this? Is there a site
where we can find statistics on grocery spending for families living
in California?
Bob
Good question. And, an important one, too. Because food is the third
biggest item in most family's budgets (right behind home and auto).
So overspending on groceries can ruin your financial plans quickly.
The U.S. Statistical Abstract contains the type of info that Bob's
looking for. He'll find it at
http://www.census.gov/compendia/statab/. To get the detailed
reports go to the section called "income, expenditures and wealth".
You'll find a tab for "consumer expenditures". The information is
generally about three years old. But, current enough to be useful.
According to the Statistical Abstract, families with incomes less
than $70,000 per year averaged spending $4,562 per year on food.
Those with incomes between $70,000 and $79,999 averaged spending
$7,337.
The average spent on food for all families in 2004 was $5,781. Of
that $3,347 or 58% was food prepared at home. The balance ($2,434)
was for food prepared outside the home (i.e. restaurants, take out
food).
What about family size? Those figures were for an average family of
2.5 members. And the average family included 6/10ths of a child under
18.
Bob's wife is partially correct. The average Los Angeles/Long Beach
area family spent $7,194 on food. $4,064 at home and $3,131 for food
prepared away from home. Of all the major metropolitan areas listed,
it was the highest.
Reader comment: I use the Canadian food guide (the U.S. has their own version)
as a template for grocery and meal planning. Bottom line...whole
foods (not processed foods); by staples in bulk for the month (rice,
cereals, etc.). Even meats can be bought in family packs, and frozen for
future use. For meats, you don't need to eat it seven days a week...how
about 'from scratch' soups like lentil, pea, or perhaps vegetarian
chili. Also, go for the cheaper cuts of meat, which can be put in a slow
cooker in the morning...dinner will be ready when you get home. Save
vegetable peelings by putting them in a container in the freezer. When
you have enough, make vegetable stock for gravies, homemade soup, etc.
Bob, you mention living in California. If you have a garden, grow
some vegetables; if you're close to the coast, consider some local fish a
couple days per week...Jen
One reason it was more expensive was that people eat out more. Only
56% of the food expenses were prepared at home. By comparison in
Tampa/St. Pete/Clearwater (with the lowest total expense) over 63%
was for food made at home.
Family size also made a difference. For families with incomes between
$43,200 and $72,600, a child less than 2 years old added $1,200 to
the grocery bill. The older the child the more expensive they were. A
15 to 17 year old added $2,330.
Given all the data, it would seem that Bob has a point. Spending
$1,500 a month plus restaurant bills is significantly above average.
But, I would caution Bob about being rigid in comparing his family to
the average. The things that make our family unique (number and age
of children, number of parents working outside the home, health and
special dietary needs, etc) can drastically affect grocery spending.
Rather than look at statistics, there are some other indicators that
will let you know if you have a problem. None of them are scientific
measurements. But, if there are some savings to be had, you'll
recognize it. Plus, you'll have some idea where to find the money.
The first sign is the 'what are we eating tonight' trap. You should
know what's for dinner before noon. If you wait you'll be more likely
to eat fast food or prepackaged meals. In other words, you'll spend
more.
Instead of going to major grocery store chains utilize Costco
or Sam's Club. We also utilize Winco for many items. Fresh produce
we purchase at Costco and Raley's. We are a family of 6 with the four
children ages 13, 11, 10, & 6. My 6-year-old eats more than my 13-year-old.
We generally spend up to $200 per week on groceries and it may go
up to $300 if it includes items such as soap, toiletry items, etc. We
generally eat out once a week and pack the rest of the time. We have
activities every evening during the week so I prepare meals ahead or we
pack sandwiches and such in a cooler so we can carry it in the car.
Preparing for the day is the key. It is very easy to not think ahead and
have a plan, then you end up eating out. Sometimes that ends up being
for lunch and dinner. That adds up quickly. If I am running behind
then I have the older three make and pack lunches and dinners as
necessary. They enjoy cooking and helping. We are a homeschooling family!
on one income so you become creative and thrifty...Cheri
The second test is to check your grocery cart to see how much
packaging and preparation has been done to your food. Every time
someone slices, dices or wraps plastic around food it costs you.
Sure, those snack packs are handy for school lunches. But, you'll pay
dearly to save a few minutes a day. Do the math. You could be
spending over $20 per hour to have someone cut and wrap cheese!
Next let's take a look in your freezer. Is it stocked with meals that
you've precooked for future dinners? What about leftovers? Are they
organized so they can be used? Or, is your freezer full of boxed
meals from your grocer?
Speaking of leftovers, do you have an organized way to use them?
Studies show that many families throw out 25% of the food they buy.
Uneaten leftovers and food purchased but never served are a waste of
your grocery dollar.
There are other signs that you're spending more than necessary for
food. But these four will give you a quick and easy way to see if you
have some work to do.
The good news for Bob's family is that it's fairly easy to save on
groceries. You have many opportunities to save since you're buying
food continually. And there are many tools to help you cut spending.
Everything from pricebooks to menus and coupons. So Bob's family can
solve the problem without moving away from Southern California!
Gary Foreman is the publisher of The Dollar Stretcher.com website and
newsletters. If you'd like to save time or money, visit today. You'll
find hundreds of articles to help you stretch your day and your dollar!
Reader comment: Home cooked meals are a cheaper option. Choose fresh products
that are in season. Freeze extra portions in foil trays labelled and
dated. Shop with a friend or neighbour and share special offers...Helen
