How Much Should I Spend on Groceries Each Month?

Everyone tells you that you should cut back on your food budget to save money but they don’t answer the most important question: how much should I spend on groceries?

You and I know that your food budget is the most flexible part of your budget.

Many of your bills are pretty fixed, like your mortgage, rent, insurances, so saving money often comes down to the food you eat.

Without some idea of the answer, you don’t know if you are spending way more than you should, or are not far off the recommended averages.

In fact are there any recommendations because that would really help, right?

I feel your pain, it took me the whole of my 20’s to realize my food budget (and other spending habits) were not consistent with my income. I went into debt because I bought the wrong food at the wrong price.

Thankfully I now have a much clearer idea of how much I should spend on groceries and how much I can afford.

I don’t want you to spend a day longer worrying about your grocery bill so I’ve done the research for you so you can work out how much you should budget for food, wherever you live.

Oh, and the answer is, yes there are recommendations for food budgets – read on.

How Much Should I Budget For Food?

How much you earn will dictate how much you can spend on groceries. If you only earn $1000 you can’t spend $1000 a month on food, you have other bills to pay.
But there are some easy ways to work out a decent monthly food budget.

1. How much you earn
2. Government advice on food budgets
3. How much you currently spend on food
4. How often you eat out

How much is your current grocery spend a month?

When you want to know how much to spend on groceries its usually because money is a problem, or rather spending too much of it is.

You need to know how much your average grocery costs per month are so you can compare to the figures below.

Go over your credit card bills and bank account statements and total up all the amounts to see how much you spent on groceries last month.

Remember to add in UberEats, the drive thru and popping to the shops mid-week. Your total might surprise you (good or bad, but probably bad if you didn’t already know this figure).

It’s just a starting point, in fact a large spend is the perfect opportunity to save money on your groceries from now on.

Remember all the figures you read about are averages and can’t be applied strictly to you.

How much is your household expenditure on eating out?

Eating out is part of your total food budget. Sure you can put it on a separate line on your budget spreadsheet but the more you eat out the less you need to spend on traditional grocery shopping.

Unfortunately eating out costs a lot more than eating in. This is an area where you can save a significant amount of money, if you focus on sticking to a weekly food budget that includes eating out less often.

☑ Need help in cutting your grocery budget? Want to cut your food bill in half? Find out how to do exactly that when you learn how to cut your grocery budget here

What governments guidelines say you should budget for food spending

In the US you have the USDA providing 4 extremely useful food plans that are updated every month and detail the cost of food for each person based on age and gender. The 4 plans are:

  • Thrifty Plan
  • Low Cost Plan
  • Moderate Plan
  • Liberal Plan

Read the USDA budgeting and spend data here

For all my calculations I have used the Thrifty Plan because I’m all about spending less money, no guessing why, I am a frugal living blogger after all! And I’m here to help you save money so the thrifty plan will help you do this the most.

In the UK, the government does not provide proactive data. Instead it provides information of the average weekly food costs based on surveying people’s actual spending in previous years.

According to ONS the average weekly groceries budget spending for 1 in 2022/23 was £45.31 per person. This figure is broken down like this:

Food at homeEating out
69% of budget31% of budget
UK average weekly food bill for 1 person
shocked woman holding a bag of groceries and looking at her grocery receipt to signify how much should i budget for food
Are you spending too much on groceries?

budgeting for groceries – Average food cost per month for 2

Remember your total food cost includes eating out as well as eating at home. The more you spend eating out, the less you have to spend on food cooked at home if you are to stick to your monthly budget for groceries.

UK – £392.68 total food budget for 2 people. Broken down as £272.04 for at home eating and £120.64 on eating out.

US – The thrifty plan food budget for the average couple aged 19-50 is $398.70 a month. The USDA figures are based on all meals and snacks being made at home, there is no separate figure for eating out.

The USDA plans have the average food budget for 2 as follows:

Thrifty plan$398.70
Low cost plan$511.70
Moderate plan$634.70
Liberal plan$792.80
Average food cost per month for 2: USDA

As a couple if you eat out once a week and spend just $30 each time then the amount you can spend on groceries for all your other meals drops significantly when on the Thrifty Plan as it amounts to 30% of your monthly food budget, the others not so much:

USDA planBudgetEating outRemainder
Thrifty plan$398.70$120$278.70
Low cost plan$511.70$120$391.70
Moderate plan$634.70$120$514.70
Liberal plan$792.80$120$672.80
Average food cost per month including a meal out each week
Open box of fresh foods and staples to signify the question how much should i spend on groceries?
Everyone’s food budget is different

Food budget for 1 – how much should a single person spend on groceries?

What is the average cost of food per month for 1 person? It depends. (You knew I’d say that, right?)

It depends on many factors but the biggest one is whether you eat out on a regular basis or not. Include takeaways in the eating out category.

UK – for a single person, using the latest ONS figures you should be budgeting around £196 for food, including eating out.

US – on the USDA thrifty plan a single person’s grocery spending should be in the region of $170 – $191, depending on age and gender.

If you rarely eat out then under $/£200 for a single person’s groceries each month is an OK amount. But if you eat out even just once a week you are going to find sticking to this food budget harder.

One meal a week out can easily set you back $15 or more, so $60 a month, leaving you that much less for your weekly food budget.

On top of which single people end up paying a premium for their groceries as many products are packaged for 2 people or a whole family.

How much should you budget for groceries a month?

The USDA’s figures show that on average people spend 5% of their income on grocery costs and another 5% on eating out. So a 50:50 split of the food budget totaling 10% of household income.

If you need to know how much to spend on groceries because you need to cut back then there is your saving right there. Cut out or cut right back on eating out and save that money.

But does this 5% apply across all incomes? Unfortunately not, as you would expect, those in the lowest 20% of incomes spend disproportionately more on food. 15% or more of their disposable income.

According to ONS the UK average household spent 11.8% of their overall budget on food, but the percentage spent on eating out is less. Just 30% of food budgets in the UK is spent on eating out.

This is an average of all households surveyed but the lowest 20% of income households spent 15.2% of their income on the life basics of food, heating and rent/mortgage.

woman leaning on her shopping trolley inspecting her till receipt to signify average food cost per month
Budgeting for food of the family

How much does the average person spend on food a month?

Exchange rate at time of publications was £1 to $1.36 so the UK median income is less than that of our American cousins.

Ignoring the differences in wages across countries, when wanting to work out how much to budget for food each month based on what others do with their money, you can look at the percentages.

What does 10% of your household income look like? For a single person, it might not be great, but for a couple then 10% could be a healthy food budget.

Let’s look at the suggested food budget for average incomes:

US average income5% food at home5% eating outtotal food budget
US food budgets using the 5% & 5% breakdown
UK average income7% food at home3% eating outtotal food budget
UK food budgets using the 7% & 3% breakdown
a few shopping till receipts spread out to signify how much should I budget for food
Food budgeting on a low income is not easy

How much should i spend on groceries with a low income?

Low income families have it much harder than those with higher incomes. Things we take for granted like food and heating your homes take up big chunks of your income leaving much less for other bills.

Using the USDA & ONS figures for low income household spending on food as 15% these are the kind of numbers you should look to spend no more than:

Monthly income15% food budgetUK monthly income15% food budget
$750 $112.50£750£112.50
Low income households spend disproportionately more on monthly food bills

These are not a per person amount, they are a household amount.

Based on 15% of your combined household income which is why they differ from both the USDA recommended amounts and the ONS actual amounts spend on food.

If you are a low income household with just $1500 disposable income (i.e. after taxes) then $225 is what you should try to aim for, regardless of whether you are a couple or have a young child.

With these figures you can see why there is a lot of food poverty in our countries.

Remember, you can save money on your food budget by not eating out or having takeaways. Save these for a special occasion. We rarely eat out; birthdays and our anniversary is probably about it.

The differences in monthly food budgets

Unfortunately you are not in total control of how much you spend on groceries in comparison to others. There are factors that can make your food budget less or more expensive.

Factors such as access to stores, cheaper shops, your location, the climate and area you live in. For example: if you live in the Scottish Isles, you end up paying a premium for everything.

Because the cost of transporting food (and everything else) is much more than the mainland.

Some foods will be dirt cheap in your area because it’s grown locally and there’s a surplus. Whereas if you were buying the same item someplace else, it would be at a premium.

person looking at receipts and financial documents
Keeping an eye on your grocery budget spending is helpful

tips on How to stick to your grocery budget

Now you have an idea of what your grocery budget should look like, let’s look at a few tactics to help you stay on budget.

meal planning

Start by meal planning each week. Work out how many mouths you have to feed at each meal and choose meals based on favorite recipes, time available to cook and what you already have in your cupboards.

Use your food cupboards

When meal planning on a budget, it makes good sense to start by identifying what food you already have in your pantry and freezer and using them as the basis for your upcoming meals.

The food you have stored is money you have already spent so use it. It’s good to keep a small stockpile but it’s also good to use it and rotate the items regularly.

Shopping list

Once you have decided on meals for the week, write out a detailed shopping list of everything you need.

Remember to not buy stuff you already have in the pantry (unless they need replacing) and also add the usual essential non-food items such as toilet paper and batteries.

If you are a college student or parent of a teen about to become one you will want to read my post on the grocery list essentials for college students. It’ll help stretch the college budget that much further.

Create a food shopping routine

Shopping at the same store and on the same day and times makes for less organizing and less thinking about it. Less of a chore. If you are an online shopper then create your orders on the same day and time so you have a good routine.

I can get around my local store in 25 minutes flat if I need to, and that was when I was shopping for a family of four. I knew where everything was, didn’t have to traipse the aisles to find any items.

eat at home

A meal out will always cost more than those cooked at home because you need to pay the wages of the chef and the server. Reserving eating out for special occasions will really help you reduce your monthly food budget.

If cooking at home is not something you are confident with then check out my post on tips on cooking from scratch for beginners.

young woman checking cook book whilst preparing food
Cook at home to save money

Always know what you’re having for dinner in the morning

This is where meal planning helps as you’ve already decided. However some people meal plan for the week but don’t specify or stick to days. Whatever works best for you.

The key here is to leave the house knowing what you are having for dinner so as you arrive home you are already sub-consciously planning the meal preparation.

secret budgeting tip – Use leftovers

Leftovers are free food. Especially if you previously binned them (please don’t!). You could have a family leftovers smorgasbord night, everyone gets a different leftover meal or you can have a buffet of leftovers and everyone digs right in.

If you liked the meal once, you’ll like it again, especially if they are a couple of days apart.

don’t waste food

If you buy it, use it. Please don’t throw it away. I’ve read reports that say we can waste up to 30% of the food we buy. Only spend money on groceries you will actually use.

Shop at cheaper stores

There are plenty of discount stores about nowadays that you can complete your whole food shop in. Aldi and Lidl are my go-to stores and they are usually 20-30% cheaper than the standard UK supermarkets like Sainsburys, Tescos and Asda.

take time to pack your lunch

Grabbing a meal or sandwich while at work gets expensive really quickly. Even a daily snack is going to cost you $50 a month.

Pack your lunch and any other food you are likely to eat while away from home. Whether that’s going to work, going shopping or on a day out.

Related post: Delicious Lunch Ideas for Husband’s packup that are budget-friendly

shelves in a supermarket aisle
Save money on your food bill each week

How to save money on your groceries

Tactics to stick to a budget are one thing but often you need help on how to cut down and save money on your groceries.

All groceries are not the same and you can save money in many different ways when you dig into what you buy, how you buy and where you buy it. Here are my top 8 tips.

choose cheaper meals

Frugal meals are a great starting point in saving money. Steak and fries might be your favorite meal but it won’t help you stick to a new food budget.

Meals that make use of cheaper foods and less ingredients are cheaper overall. As are ones that use less meat and more seasonal vegetables. Our favorite cheap meals are tuna pasta bake and chili (lots of beans, less so meat).

Choose cheaper foods and ingredients

Take a cheap meal and make it cheaper. Use cheap foods to pad out the meal. Chili is the perfect example. Many recipes will have it loaded with meat and one tin of beans between 4 or 6 people.

Make that 2 or 3 tins of beans and you need much less meat. Beans are much cheaper than meat.

I make tuna pasta bake for 4 people with 1 can of tuna. I add in other vegetables, usually sweetcorn, which are of course cheaper than tuna.

make generic brands your standard

Premium brands can cost up to 400% more per item than the value and generic brands. When you buy premium brands you are paying for their marketing budget that they use to persuade you their product is better!

Generic brands may taste a little different to their premium cousin but different does not equal bad. Focus on the price difference to help you decide which one is worth buying.

Not just food either, medicines are another area where generic can give you significant savings.

stockpile when prices are low

Many food items go on sale every so often and when they do it makes good money sense to stock up to take advantage of the low price. Get to know how often the sales come around and you can stock up with enough to see you through until the next sale.

canned and dried goods on a white background to signify how much should I budget for food
Cheaper foods can lower your grocery bill

buy canned & frozen

Canned and frozen ingredients, especially vegetables can often be cheaper than their fresh counterpart. Veggies are frozen within a couple of hours of being picked so often retain more of their nutrients than those stored in warehouses prior to reaching our stores.

Use coupons wisely

I used to use coupons a lot, but only ever when it saved me real, hard cash.

Most coupons are for branded items that cost more than their generic equivalent. When you use coupons to reduce spending on shopping, you need to make sure you are saving real money not just imagined money.

Never mind the saving, is the coupon going to let you buy that item for less than you would have bought it or another? I.e. if your coupon is for $1 off a premium brand costing $3, it’s going to cost you $2. The generic brand is only $1.50.

Using the coupon is going to cost you $.50 more than if you bought the generic item so it’s not saving you money. Unless you intended to buy the premium brand anyway.

Check prices

Each week stores have items of sale, loss leaders they are called. These products are deeply discounted to entice you in to buy them. When you’re there the stores want you to spend yet more money.

Buy these deals but if the store is not your usual cheap store, don’t finish off your grocery shopping there. Keep your food bill low by shopping smartly.

Ignore Multi-buys

Multi-buys and BOGOFs (buy one, get one free) are designed to part you from more of your money. They can be a good deal but not always.

  • Multi-buys are smaller packets but are more expensive than one large packet
  • They’re on premium brands but you are happy to buy the generic equivalent
  • You only use a small amount so 2 packets is far, far more than you can use
  • It’s not a product you would usually buy
womans hands holding a fan of dollar bills over a brown wooden desk
Spend according to your budget, and no more

How much will you spend on groceries this month?

The answer to your original question, how much should I spend on groceries? is still, it depends. But now you have a much clear idea of what the average food bill each month should be, whether you’re a couple, single or a large family.

Take some time to work out your food budget, and make plans to get your groceries cheaper than you have previously.

Check out my post with over 70 best ways to save money on groceries for even more tips and inspiration.

If you’re up for a little challenge, join the 7 day grocery budget challenge and see how much you can save.

Come and follow me on Pinterest for more money saving hints and frugal tips!

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Last Updated on 2nd October 2023 by Emma

About Emma

I'm here to help you become confident in making the best money decisions for you and your family. Frugal living has changed my life, let me help you change yours.

4 thoughts on “How Much Should I Spend on Groceries Each Month?”

  1. I so enjoy reading your articles! I’m glad someone else knows about the USDA grocery plans and I did not know about the ONS data. It is also interesting to get both takes at once: UK/USA, because my husband is Scottish, and we have extended visits there, too, and shop and cook for ourselves when there.

    For a long time now, even before I gardened or did as much baking, canning, and DIY as I do now, I tried to keep our food budget half of the USDA thrifty plan. Currently we are under $150 for two people, per month. Yes… that’s correct. I am gardening and canning now, but even before it was low. It sounds austere, but it isn’t. We eat very well, of better quality than people spending much more, and I don’t think we’d change much if we had more money. We might eat out a little more. But we don’t feel like we want for anything. I drink organic French press coffee and like fancy cheeses. We buy lovely fresh fruit. We make some of our treats and buy some premade. Bacon for breakfast on the weekend. Lots of variety.

    I use some of the techniques you mention, but not others. Some “cheap” recipes to me, taste cheap. Go too light on the meat in a meat dish and it is not very satisfying, so I would rather vary the meals and have some meals feature meat, some meals be mixed, and some without meat. I love pea soup and fresh homemade bread and that is about as cheap as you can get, but not too often, please! So what we do instead is more of the old fashioned way of eating. We save money on meat by buying large cuts on sale, like a roast or a ham, or large bargain chicken packs, and then divide it for many meals and use our freezer. Once a week we have a lovely “Sunday dinner.” The savings of doing it this way with something like a roast instead of buying packs with only enough for one meal, or worse yet buying premade dinners, is incredible. In the U.S. I figure a meat serving at roughly 1/4 lb, so I use the label to know how many meals I can make and how to divide it up. The last ham I purchased when I spied a bargain. It was a 10+ lb ham for a little over $10, we ate it as a glazed ham, and then after the meal I divided the remainder into 9 portions, each for a meal for our family of four, and boiled the bones for stock. Ten meals for a family of four, for what many people spend on just one. Or they get stuck eating only chicken.

    Baking a lot of our own baked goods also saves tremendously. I can get a 25 pound bag of flour for $5.29, which is incredible when you consider I could spend almost that much on one package of premade cookies or fresh muffins at the store. So that I’m not a slave to my kitchen, I choose one morning a week – about three hours, to bake two to four things for the week, and that’s all I spend in time unless it’s someone’s birthday and I make a cake. You can always mix a double batch of cookie dough, bake half, and put half of the dough in the refrigerator or freezer. I always bake bread, and then it might be biscotti or pastry or anything simple or fancy. It doesn’t take as much time to DIY as people think it does.

    The basic technique I use is to simplify my shopping list to mostly real, unprepared, food. I get ingredients, not the finished deal. Meat, veg, fruit, dairy, sugar, fats, pulses (mostly dry, not tinned), grains & flours, and just a fraction of the budget (maybe 10%) goes to processed or premade anything – it is in that portion that we’ve become very choosey. Because if you break down your current grocery receipt into what is actually spent on meals, and what is spent on sauces, treats, breakfast cereal, cookies/biscuits, chips/crisps, etc., you’ll get a shock. It is in that portion that I’ve been chipping away gradually and finding homemade versions we like better for some of that, not all… just some. And then learning tricks for shortening the time it takes me to make good meals or to bake.

    Anyway I didn’t mean to write so long a response, but I found your article inspiring and exciting! I’m going to read it again and try some of the things I don’t do now. Saving money on groceries has been a joy for me because we eat better and higher quality food than we did before, and we have so much more freedom and security in our budget, for having saved on groceries.

    Thank you much!

    • Hi Holly! Thank you for such a lovely detailed comment! You hit the nail on the head when you said your shopping list is full of real, unprepared food. Buying food in it’s most natural state (flour and pasta excepted) is the best way to save money AND eat more healthily. When our budget was really tight and I was constantly looking for ways to save money I would go through my grocery receipt once home and circle every item that fell into the ‘not essential’ or ‘treat’ category. Then I would be determined the next week to cut that figure down further. I know we could save a bit more now if I was to bake more. But me and baking just aren’t great friends – I have too many calorie hang ups and then there is the whole rubbing fat into flour thing that makes me shudder!

  2. Good Morning,
    We are retired people living on a “budget”. I have read your article and agree with most of what you have written with one problem point. This article was written somewhere around 2021. It is not 2023 and many things have changed as far as the “economy”. Without burdening you with the obvious changes that have taken place in the USA in particular, I highly suggest you revise the article in consideration of the cost of food and everything else with today’s “cost of living”.
    Thank you

    • Hello Colleen,

      You are totally right, this article needs a current-day spruce! Thank you for bringing this to my attention, I want all my work actually to be helpful to my readers. I will be updating this article to be helpful in 2023.


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