How Much Should You Budget For Groceries Each Month?

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 2.2% in the last year, according to a May 2025 report^[0]

Below, 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.

» LEARN: How to recession-proof your grocery budget

What is the average cost of groceries per month?

The average monthly cost of groceries is about $504 for a household, based on the latest data from the BLS, released in late 2024.

The figure comes from the average annual cost of groceries for a household, which is $6,053^[0]

Keep in mind these averages include both how much families spend on groceries (likely more) and how much single people living alone or with roommates spend (likely less). So if that $504 monthly figure feels off to you, that could be why.

» 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.

Follow USDA food plans

The U.S. Department of Agriculture creates monthly food plans you can use as guidance for grocery spending. The plans estimate the average cost of nutritious, home-prepared meals and snacks by gender and age. The plans are broken into four spending levels: thrifty, low cost, moderate cost and liberal.

The May 2025 estimate for a family of four on a thrifty plan is about $993.06 per month. (The USDA defines this family as a male and female between ages 20 and 50, and two children, ages 6 to 8 and 9 to 11.)^[0]

These food plans can suggest a monthly grocery budget for your household, but they’re still estimates.

Create a grocery budget

The 50/30/20 budget can help you work out how much to spend on groceries based on your income and expenses. Following this framework, you spend about 50% of your monthly after-tax income on needs, 30% on wants and 20% on savings and debt repayment. (Consider this 50/30/20 split as an ideal to work toward, rather than a strict rule.)

Most groceries fall under the “needs” category, but not every item at the grocery store qualifies as a necessity. Buying an expensive steak for a special dinner would be a “want,” for example.

Here’s an example using real data. The median household income from the U.S. Census is $80,610, which amounts to $75,303 after taxes. That’s $6,275 per month.

• $3,138 for needs, like basic groceries, housing and transportation.

• $1,883 for wants, like meals out, entertainment and travel.

• $1,255 for savings and loan payments beyond the minimum.

How much of that $3,138 should go toward groceries depends on the monthly cost of your other essentials. Let’s say you pay $1,700 for housing and utilities, $200 in student loan payments and $550 for your car payment and insurance.

Those necessities add up to $2,450, leaving just $688 per month for vital groceries, which is less than the thrifty family plan mentioned above ($993.80).

If that amount won’t cover everything you need, or if you want to plan for some treats, you can take additional money from your “wants” budget. Or try another budget system that may work better for your financial situation.

Tips for grocery savings

If 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 resources such as food banks and government assistance programs.