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Prices in the grocery store can be shocking these days.
Elizabeth Renter, NerdWallet senior economist, says don't expect that to change anytime soon.
"Higher gas prices and the downstream effects of that — higher grocery prices, further constrained household budgets, etc. — will drive increasing discomfort" among consumers, Renter says.
Grocery prices, classified by the U.S. Bureau of Labor Statistics as “food at home,” increased 2.4% in February .
What can you do? How much should you spend? How can you save?
We have some ideas.
What is the average cost of groceries per month?
The latest data from the U.S. Department of Agriculture shows that the average family of four spends $1,000.20 per month on groceries. That's more than $12,000 per year.
This family, on the USDA's thrifty plan, includes two adults between the ages of 20 and 50 and two children, ages 6 to 8 and 9 to 11 years old.
The USDA has four plans, which start at the thrifty and move to low-cost, moderate and liberal plans.
So families on the cheapest plan still spend over $10,000 a year on groceries.
» Learn why groceries are so expensive
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What drives your grocery spending?
Knowing what factors influence your grocery budget might 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 buy in bulk to lower per-person costs.
- Location and accessibility: Where you live can affect grocery prices. Even in 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 often cost more, 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 could help you save. You could limit impulse buys, track your total in real time, and compare prices easily.
» RELATED: How to save money on gas
How much should you 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 guideline, 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 list. Some grocery list apps, such as Out of Milk, have a pantry inventory feature to prevent you from buying duplicates.
- Find discount 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 savings.
- Shop seasonally to get the freshest produce at the lowest prices.
- Join store loyalty programs to earn rewards and get deals.
- Explore ways to find 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 at home. You can reduce food waste, stretch your budget and get creative in the kitchen.
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.
» VIDEO: 6 strategics ways to save on groceries.
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- 1. U.S. Bureau of Labor Statistics. Consumer Price Index Summary. Accessed Mar 13, 2026.
