Managing your grocery expenses may not appear significant, but you might be surprised when you track your spending. According to data from the intelligence firm Esri, Americans typically spend around $431 per month on groceries.
The COVID-19 pandemic has exacerbated the situation. Since the outbreak in February 2020, the prices of food items like eggs, meat, and vegetables have experienced the most significant increase in over a decade.
Consumer price index statistics reveal that grocery prices have surged by 7% since January 2020. While this increase can be attributed to factors like food shortages due to panic buying and business closures during the pandemic, inflation has also played a role.
Aside from high prices, our behavior at the grocery store can also impact our budget. We often walk into the store and give in to the temptation to overspend on items we didn’t plan for or truly need.
It’s time to tackle this issue, and while we can’t fix the squeaky wheels on your shopping cart, we can provide practical tips to help you save money on groceries.
- Utilize Rewards Cards: Save money on groceries by using specific cards that offer rewards. These rewards can be used to offset future grocery bills, with some grocery rewards cards providing up to 6% cashback.
- Simplify Your Dinners: Redefine dinner by opting for simpler meals like omelets, beans, BLTs, and salads a few times a week. Serving cost-effective meals can help you stick to your budget.
- Join a Loyalty Program: Sign up for a free-to-join loyalty program at your grocery store to access members-only discounts and save more.
- Clip Coupons: Maximize savings by using store coupons. Weekly circulars and digital coupon apps make it easy to find discounts and apply them to your purchases.
- Shop with a List: Always shop with a list and keep a running tally of your expenses as you add items to your cart to avoid overspending.
- Use What You Have: Before heading to the grocery store, check your pantry and fridge to see if you have ingredients that can be used to create meals, reducing the need for additional groceries.
- Consider Wholesale Clubs: If you have a large family, consider joining a wholesale club like Costco to save on bulk purchases.
- Buy Sale Items: Look for items on sale like eggs, milk, and vegetables when you shop for groceries.
- Be Cautious with Bulk Purchases: While buying in bulk can save money, it may not always be the cheapest option. Calculate the price per unit to ensure you’re getting a good deal.
- Pay with Cash: Using cash helps control your spending and prevents impulse purchases that credit cards might encourage.
- Explore Different Stores: Don’t limit yourself to the same grocery store every week. Check out other stores in your area for potential savings.
Inflation and the pandemic have driven up grocery prices, making it crucial to make savvy decisions to save money on groceries. Small savings during each grocery trip can add up significantly over time. Keep a record of your grocery shopping and stick to a budget to make wise financial choices.
Reclaim Dollar is a financial blog that empowers individuals to make informed financial decisions. We provide guidance on earning money, saving money, managing debt, loans, banking, and more.
