Have you ever wondered how much money should be in your grocery budget? How much should the average household spend? How much are households actually spending? Let’s take a closer look at how much money you should have in your grocery budget.
How Much Are You Currently Spending?
To determine how much your family should actually have in your grocery budget you need to track your spending. Not only should you write down how much you’re spending when you go grocery shopping, but you should keep the receipts. Do this for at least two months to determine the average spent each week. This can be eye-opening. Chances are you’re going to see that you spend way more than you originally thought.
What Is the American Average?
The average household spends around 6% of their income on groceries. This means that if you make $4000 per month, you would spend $240 a month on groceries. If you have a family of four, you probably think that’s impossible. A $60 per week budget for groceries is difficult to keep up over the long run for a family of 4 (especially with teenagers!). This is why it’s impossible to choose a budget for each home. Each home has different needs.
Are You Making the Most of Your Money?
Take a long look at your grocery receipts. What are you spending money on? Are you buying a lot of junk food? Are you actually consuming all the food you purchase or is some of it going to waste? Do you plan meals? Do you base your grocery list on the foods you already have?
There are so many ways to cut your budget. Consider the percentage of your income you’re currently spending and select a goal that you think will work for your family. For example, if you’re spending 20% of your income on groceries, try to reduce the cost to 15% and reevaluate whether you and your family are doing better with the groceries you purchase.
The truth is there is no exact answer as to how much should be in your grocery budget. What matters is that you’re buying healthy foods, reducing the amount of junk you buy, and – most importantly – eating the food you purchase.
Being smart about how you spend your money is important. If you’re spending your money carelessly, you obviously need to make changes. Track your spending and look at the receipts. Are you making the best choices?