What Should My Monthly Grocery Budget Be?
With grocery prices still climbing, figuring out how much to spend on food can feel overwhelming. This article breaks down average costs, the factors that influence your bill and simple strategies to help you stretch your grocery budget further.
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It might be hard to figure out how much you should spend on groceries when food prices are so high. Grocery prices, classified by the U.S. Bureau of Labor Statistics as “food at home,” have increased 1.9% in the past year, according to a December 2025 report .
We’ll share the average cost of groceries to provide context for how your spending compares with that of other households. Then we’ll give guidance on how to save on those groceries, particularly if food costs have been consuming more and more of your budget.
What is the average cost of groceries per month?
The U.S. Department of Agriculture estimates the monthly cost of a family of four, including two adults between the ages of 20 and 50 and two children, ages 6 to 8 and 9 to 11 years old. The plans start at the thrifty food plan and move to low-cost, moderate and liberal plans.
September 2025 data shows that the average family of four on the thrifty food plan spends $1,002.20 per month on groceries, which is more than $12,000 per year.
That same family would spend $1,631.10 per month on the liberal monthly plan, which amounts to $19,573 per year.
These food plans can suggest a monthly grocery budget for your household, but they’re still estimates.
» Learn why groceries are so expensive
What drives your grocery spending?
Knowing what factors influence your grocery budget can help you make more informed decisions about your spending.
- Household size: Larger families tend to spend more on groceries each month. The one upside? Big families can take advantage of buying in bulk to lower per-person costs.
- Location and accessibility: Where you live can have a big impact on grocery prices. Even within the same city, prices and product selection can vary widely by ZIP code. Living near discount grocers or warehouse stores can also affect what you spend.
- Dietary restrictions: Prepare to spend more at the store if you need specialized products. They’re often more expensive than their counterparts, and have fewer discounts and promotions.
- Shopping habits: Smart shopping habits like meal planning, making a list, and using coupons can significantly lower grocery costs.
- In-store or online shopping preferences: Shopping for groceries online can help you save by limiting impulse buys, tracking your total in real time, and making price comparisons easier. However, added delivery fees, fewer in-store deals, and the risk of costly substitutions can make it more expensive overall.
How much should I spend on groceries each month?
Not sure where to start? Here are a few guidelines you can use to come up with a number.
Create a grocery budget
One way to figure out how much you can spend on groceries is to see where they fit into your overall budget.
The 50/30/20 budget suggests spending 50% of your monthly take-home pay on needs (including groceries), 30% on wants and 20% on savings and debt repayment. Think of this as a guidelines, not a strict rule.
Start by adding up your essential bills — housing costs, utilities, insurance, childcare and transportation. Whatever is left in the “needs” category can realistically be put toward groceries.
If that number feels tight, adjust spending in your “wants” category” or look for ways to reduce your grocery costs.
» MORE: How to choose the right budget system
Tips for grocery savings
If you find that you’re struggling to fit food costs into your budget month after month, it might be time to look for long-term ways to save money on groceries. Start with these simple strategies:
- Look in your refrigerator and pantry before making a shopping list. Some grocery list apps, such as Out of Milk, have a pantry inventory feature to prevent you from buying duplicates.
- Find discounted grocery chains in your area, such as Aldi or Grocery Outlet, to save on your staples.
- Embrace store brands. Swapping even a few key items could lead to noticeable savings.
- Shop seasonally to get the freshest produce at the lowest prices.
- Join store loyalty programs to earn rewards.
- Explore ways to get coupons, through rewards programs, apps and other opportunities.
- Plan a “pantry week” where you try to make as many meals as you can with what’s on hand. You can reduce food waste, stretch your budget and get creative in the kitchen.
Your financial position, expenses and spending will presumably change throughout your life. Make sure to revisit your grocery budget every month and adjust as needed.
If you feel like careful budgeting and penny-pinching aren’t enough and you need help paying bills, look into local resources such as food banks and government assistance programs.
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- 1. U.S. Bureau of Labor Statistics. Consumer Price Index Summary. Accessed Dec 18, 2025.
