Top 15 Tips on How to Budget Groceries for 2

Navigating the world of grocery shopping can be a daunting task, especially for couples trying to balance quality and cost. The average family spends a significant portion of their monthly income on groceries, and for a household of two, the average cost of groceries can still be a hefty sum. With the right strategies, however, there's an easy way to cut down that much money being spent. Whether you're a couple on a tight budget or just looking to save some extra money, my Top 15 Tips on How to Budget Groceries for 2 will guide you through the best ways to budget effectively.

1. UNDERSTAND YOUR SPENDING

A woman's hand is holding a pen and a calculator.

First, analyze your current grocery spending. Look at your average grocery bill over the past year and compare it with national averages. This gives you a clear idea of where you stand and how much room there is for improvement. If you are just beginning and have not saved grocery receipts, start doing so now. My spouse uses Quicken to track grocery expenditures making it easy at the end of the year to get your total $$ spent on groceries. Warning, it can be a shocker, so it is best to check quarterly and make adjustments as you go.

For information about how much you should be spending on groceries check out the Official USDA Food Plans for 2023. This chart gives you the recommended grocery budgets based on your family size and economic status.

2. SET A MONTHLY GROCERY BUDGET

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Once you have an annual grocery budget in mind, start on your monthly plan. Based on your spending analysis, set a realistic monthly grocery budget. Remember, the average cost of food can vary, so adjust according to your needs and financial goals. Also, be sure to add in at the end of the month the amount spent on eating out. That can skew the numbers wildly both ways. My spouse has those expenses going into the grocery cost category so we have less math to do at the end of the year.

3. EMBRACE MEAL PLANNING

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Meal planning is a great way to reduce food waste and save a lot of time. Plan your meals weekly and make a shopping list of necessary grocery items. This prevents impulse buys and ensures you only purchase what you need. I find that more people fall into the meal planning hater category than the enthusiastic meal planner category. It is usually because they do not need to do it because they have the discretionary income to avoid it. We fell into that category until retiring and living on savings and social security.

Note that meal planning and meal prep are not the same thing! You do not have to buy little containers and prep your meals ahead of time, but you can if you want to. Meal prep and meal planning actually go hand in hand. You can find a lot of great tips and tricks in my article, Meal Planning for Two.

4. OPT FOR A CHEAP GROCERY LIST

Creating a cheap grocery list tailored to your family size—in this case, two—helps keep your food costs within budget. Focus on essential and versatile items. The recipes on this food blog are all categorized as Cheap, Frugal and Splurge. Cheap is for those under $4.00 per serving, Frugal is for those $4.00 to $8.00 per serving, and Splurge is for those over $8.00 per serving. Each recipe has its rating in the recipe card.

5. SHOP AT DISCOUNT STORES

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Discount stores often offer lower grocery prices than conventional supermarkets. Don't hesitate to explore local options for good quality yet affordable purchases. In my geographical area we have a discount grocery chain called Grocery Outlet. They offer deeply discounted prices on grocery items with an emphasis on canned goods. Their products vary from week to week, so if you see something you want, you better buy it then. We are teetotalers, but I am told that their wine prices are amazing.

Dollar stores are another great place to find groceries on the cheap. Again, the inventory varies so grab it if you want it.

6. BUY STORE BRANDS

Choosing store-brand products over name brands can significantly reduce your average food cost. They are often similar in quality but more budget-friendly.

I have a strategy for shopping store brands. I always give the store brand a chance, but if I find it inferior to the name brand I buy the name brand. Many times you cannot tell the store brand from the name brand.

7. USE GROCERY DELIVERY SPARINGLY

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While grocery delivery services offer convenience, they can add extra costs. Use these services judiciously, especially if you’re trying to stick to a tight budget.

When the pandemic hit, we used grocery delivery services almost exclusively. My spouse and I both have significant health issues and we were on strict home confinement. It was a lifesaver. Now I do the shopping and enjoy choosing my produce and meats. I know people who got spoiled and still use it exclusively. The price mark-ups, service fees, and delivery fees add up so use it sparingly if you are on a budget. You can find more information in my Pros and Cons of Grocery Delivery Service.

8. TAKE ADVANTAGE OF SALES AND BULK BUYING

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Keep an eye out for sales at your local grocery store. Buying in bulk, especially for non-perishables like toilet paper, can be a good deal in the long run. A word of caution here. Something is not a bargain if you don't use it. Buying in bulk can lead to waste when you can't use the items up before the expiration date. Don't stock up on something you haven't tried.

9. VISIT FARMER'S MARKETS

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Farmer’s markets are excellent places to find fresh produce, often at lower prices than in stores. Plus, you’ll be supporting local growers. A trip to the farmer's market is a delightful adventure but it can also be a money pit. If you are lured into the booths with artisan breads, locally roasted coffee, exotic meats, and multicultural foods you can easily spend too much.

I know from experience. To curb the urge I carry only a small amount of money in small denominations. I do not bring my debit or credit card but they are locked in my trunk. If I really "need" something special, sometimes the thought of walking to the car and back is enough to change my mind.

10. REDUCE FOOD ALLERGIES AND SENSITIVITIES

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Be mindful of food allergies when shopping. Specialty items can be more expensive, so finding suitable and affordable alternatives is key.

11. USE CREDIT CARDS WISELY

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If you use a credit card for groceries, consider one that offers rewards or cash back on grocery purchases. This can help save some extra money.

12. LOOK FOR LOCAL STORE DEALS

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Regularly check flyers and apps for deals at local stores. This can lead to significant savings, especially when you find a good deal on frequently purchased items.

13. JOIN WHOLESALE CLUBS

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Membership stores like Sam’s Club can offer significant savings for a yearly fee, especially on bulk items. However, weigh the cost of the membership against potential savings.

14. COMPARE FOOD PRICES REGULARLY

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Keep an eye on food prices and compare between stores. Sometimes, a different store might offer a lower price for the same quality.

15. CONSIDER ORGANIC FOODS SELECTIVELY

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If you prefer organic food, it’s important to be selective due to its higher cost. Prioritize organic purchases for items most affected by pesticides and where it matters most to you.

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By implementing these 15 tips, couples can effectively manage their grocery spending without compromising on quality. The key is to stay informed, plan ahead, and be mindful of your purchasing habits. With these strategies, you'll find that managing the average cost of groceries for two is not only achievable but can also be a fulfilling part of your journey together. I sincerely hope that my Top 15 Tips on How to Budget Groceries for 2 has been helpful!