Is grocery shopping actually cheaper than eating out?
For those who want a quick and easy answer: It's generally cheaper to cook food at home than eat out. The reason so many people can get stuck on the question is the human psychology variable. People don't always spend wisely, and it isn't as if prices are always the same at a supermarket or a fast food restaurant.
What's a reasonable food budget? Many financial advisors and gurus recommend spending no more than 10%-15% of take-home pay on food, a figure that includes restaurant dining and takeout. By this measure, a couple with $70,000 in adjusted income should keep an annual food budget in the $7,000 to $10,500 range.
Although slightly more time-consuming, grocery shopping every day easily fits into my daily routine of going to the gym or running other errands, and the money I save doing it — an average of at least $50 a week — is worth the trip.
According to the U.S. Census Bureau, Americans spent 20% more at restaurants than on groceries last year. With grocery prices up 8% compared to a year ago, some people have decided to spend less on groceries and opt for the convenience of take out or deliveries.
According to the Bureau of Labor Statistics, an average American spends approximately $3459 on food away from home. That's a massive sum for an American household. If you stop eating out altogether, you can save around $2200 yearly (considering the eating out cost is three times more than home-cooked meals).
Whether you own your own home or pay rent, the cost of housing is likely your biggest monthly expense. In addition to a mortgage or rent payment, costs may include insurance, maintenance and property taxes.
According to the point-of-sale company BNG, the food industry follows a standard cost-to-menu price formula of 28% to 32%. That means restaurants charge at least double — often much more — for any given item on the menu. The markup from wholesale is typically about 300%.
And broken up into weekly costs, here is what the average two-person household might expect to spend: Thrifty: $119.40 per week. Low-cost: $122.90 per week. Moderate-cost: $152.30 per week.
The Average Cost of Groceries Per Month
According to 2021 data from the Bureau of Labor Statistics, which is the most recent available, the average spending on food at home is $5,259 annually, or about $438 per month for U.S. households.
It Might Depend on the Size of Your Household
“A smaller household may find it better to shop weekly sales and to buy smaller amounts, to not only stay on budget but prevent food waste,” she said. “But if it's a larger household, it may pay to do bulk shopping less often, like on a monthly basis.”
Why do lower income families pay more for groceries?
Low-income households may face higher food prices for three reasons: (1) on average, low-income households may spend less in supermarkets--which typically offer the lowest prices and greatest range of brands, package sizes, and quality choices; (2) low-income households are less likely to live in suburban locations ...
Groceries, housing and other essentials should take up no more than 50% of your monthly income.
The 50/30/20 rule is a budgeting technique that involves dividing your money into three primary categories based on your after-tax income (i.e., your take-home pay): 50% to needs, 30% to wants and 20% to savings and debt payments.
If you are only feeding yourself, it's cheaper to eat out in most cases,” they wrote. “And in the end it still doesn't even taste as good,” one unrealized home cook rued.
In February 2013, $44 billion was spent on dining out and $47 billion on groceries. This steadily grew but in March 2020, groceries jumped to$74 billion and in April 2020, dining out dropped to $31 billion. In February 2023, dining out was at $95 billion and grocery spending was $72 billion.
Buying a house is likely one of the biggest expenses you'll make in your life and usually requires years of planning and budgeting. In many cases, putting a down payment on a house consists of paying tens of thousands of dollars for the privilege of becoming a new homeowner.
A popular rule of thumb says your income should be around 3 times your rent. So, if you're looking for a place that costs $1,000 per month, you may need to earn at least $3,000 per month.
Aged 35 to 64
The 35- to 64-year-old group had, on aver- age, the highest level of total expenditures ($42,236) and spent more than the other two household groups in all major expenditure categories except for alcoholic beverages, health care, and cash contributions.
Whatever your philosophy is, one time we can all agree on is that going out to dinner at a local restaurant is a great way to give yourself a break while you enjoy a good meal. Going out provides the opportunity to socialize and relax over delicious food, without the work of cooking or the dreaded post-dinner cleanup.
Cooking at Home is Healthier Than Eating Out
When compared with take-out or going out at fast food chains, a study showed those who cook more often had an overall more healthy diet and lower levels of cholesterol than people consuming restaurant food or unhealthy foods on occasion.
How many times a week should you eat out?
If you really want to save money, Gidus recommends limiting yourself to once a week. But, she adds, “if you can get a nice nutritious lunch from the deli next door, you can do it every day.” You can also make the most out of your meals out by saving leftovers and getting more meals out of them.
- Log what's in your freezer. ...
- Ditto for your fridge and pantry. ...
- Start your meal planning with a bag of rice. ...
- Make a strategic shopping list … and stick to it. ...
- Shop farmers markets toward the end of the day. ...
- Shop the freezer section for produce. ...
- Buy the store brand. ...
- Only buy meat when it's on sale.
The average food budget for a single person is between $250 and $300 a month, but that's just a guideline. If you can buy meals at a discount or visit family and eat with them, you might be able to spend less.
- Shop at discount grocery stores like Aldi or Trader Joes.
- Compare prices between stores — even if it means driving to a few different ones at first.
- Plan your meals for the week based on what's on sale.
- Clip coupons and look for discount codes.
- Always, always, always eat your leftovers.
In general, $200 per month is likely to be sufficient for groceries for one person, but it may not be enough for a family or for those who want to purchase higher-priced items.
- Learn how to cook. ...
- Plan your meals. ...
- Use a budget grocery list. ...
- Use store rewards cards when grocery shopping on a budget. ...
- Sign up for your store emails. ...
- Don't limit yourself to one grocery store. ...
- Shop for store brand goods. ...
- Bargain hunt when grocery shopping on a budget.
- Plan meals together in advance and make a list of the ingredients you'll need. ...
- Only grocery shop on a full stomach. ...
- Work your way through the Weekly Circular and coupons. ...
- Shop for a long shelf life. ...
- Don't discount the store brand.
Average grocery bill for 1 person
If you're a single adult, depending on your age and sex (the USDA estimates are higher for men and lower for both women and men 71 and older), look to spend between $229 and $419 each month on groceries.
By the end of this blog post, you will see that a 50-a-week food budget is 100% possible. While it is far from an elaborate weekly food endeavor, my meal plan and cheap grocery list for a week is totally doable – plus it's delicious and nutritious.
- Take Inventory of Your Pantry. ...
- Frugal Foods. ...
- Go Through Your Recipes. ...
- Meal Planning. ...
- Make a List and Check it Twice. ...
- Use Rebate Apps. ...
- What if I have a big family?
What is the 40 20 10 rule?
40% of your time should be devoted to your most important priority. 30% of your time should be devoted to your second priority. 20% of your time should be devoted to your third priority. 10% of your time should be devoted to everything else (urgent and obligatory tasks).
In 2021, households in the lowest income quintile spent an average of $4,875 on food (representing 30.6 percent of income), while households in the highest income quintile spent an average of $13,973 on food (representing 7.6 percent of income).
We recommend the popular 50/30/20 budget to maximize your money. In it, you spend roughly 50% of your after-tax dollars on necessities, no more than 30% on wants, and at least 20% on savings and debt repayment.
Almost 25% of American adults are food insecure, a jump of about five percentage points from a year earlier as the double whammy of high inflation and the end of pandemic benefits squeezes more household budgets, according to a new study.
The lower the income, the more likely consumers are to buy their groceries at dollar stores or mass discount stores like Walmart, Target, and Dollar Tree. They have a preference for familiar stores because they know they can get what they need at the right price.
Survey: Over 92% of Americans Can't Afford Groceries and 50% Report a Decline in Health.
And you've come to the right place. The average American dines out 5.9 times per week and according to BLS data, the average household spends about $3,500 on eating out every year, or just shy of $300 per month.
Average Daily Spending by Americans of All Ages | |
---|---|
Groceries | $11.95 |
Clothing/Apparel | $5.02 |
Pets | $1.95 |
Overall | $164.55 |
How much do clothes cost per month? In the United States, households spend an average of about $120 per month on clothes. That comes out to $1,434 per year.
By age 50, you would be considered on track if you have three to six times your preretirement gross income saved. And by age 60, you should have 5.5 to 11 times your salary saved in order to be considered on track for retirement.
What is the 50 15 5 rule?
50 - Consider allocating no more than 50 percent of take-home pay to essential expenses. 15 - Try to save 15 percent of pretax income (including employer contributions) for retirement. 5 - Save for the unexpected by keeping 5 percent of take-home pay in short-term savings for unplanned expenses.
Generally, “pay yourself first” means what it says—set aside money for savings before paying bills and making other purchases. But it's still important to keep up with debt obligations. Automatic transfers can make it easier to pay yourself first.
Is It Cheaper to Cook or Eat Out? For those who want a quick and easy answer: It's generally cheaper to cook food at home than eat out.
How often do Americans eat out on average per week? Americans eat out approximately 4.2 times a week on average.
What's a reasonable food budget? Many financial advisors and gurus recommend spending no more than 10%-15% of take-home pay on food, a figure that includes restaurant dining and takeout.
The rich, on the other hand, spend more going out to eat than any other income bracket, often at fancy or expensive restaurants at which meals can cost hundreds of dollars. Other findings: While the poor spent about 51% of their money on staples such as food, fuel and clothes, the wealthiest spent the least at 40.9%.
When asked those who didn't cook chose not to, researchers found that 28% cited not knowing how to cook, 25% said that "not wanting to clean up afterward" was the reason, 21% said that they didn't have enough time too cook, and 51% said that they did not cook because their spouse or partner does the cooking.
Not only do millennials — that is, people born between 1980 and 2000 — eat out more than non-millennials, but they also spend more money eating out: Millennials spend about $174 per month dining out in restaurants, on average, according to a new infographic from the marketing agency Restaurant Marketing Labs, whereas ...
For a low-cost budget for a family of four, you can plan on spending $241.70 a week or about $1,047.10 a month. Moderate-cost plan. For a moderate budget for a family of four, you would spend $301.20 a week for groceries or $1,304.70 a month. Liberal budget.
FAMILY SIZE | SUGGESTED MONTHLY BUDGET |
---|---|
1 person | $251 |
2 people | $553 |
3 people | $722 |
4 people | $892 |
How much should one person spend at the grocery store per week?
Remember the USDA Food Plan guidelines? For individuals 19 – 50, here's what those guidelines say you should be spending each week on food (actual number depends on age and sex): Thrifty: $53.40 – $66.50. Low-cost: $57.10 – $65.80.
To budget effectively using the 50%, 30%, 20% rule, track your expenses, prioritize essential needs, be mindful of wants, and consistently allocate savings or debt repayment within the designated percentage.
The average two-person household can expect to spend between $510-$820 per month on groceries. The average moderate cost between these two figures is around $655 per month. And broken up into weekly costs, here is what the average two-person household might expect to spend: Thrifty: $119.40 per week.
The Average Cost of Groceries Per Month
What does the average U.S. household spend on groceries per month? According to 2021 data from the Bureau of Labor Statistics, which is the most recent available, the average spending on food at home is $5,259 annually, or about $438 per month for U.S. households.
How much do clothes cost per month? In the United States, households spend an average of about $120 per month on clothes. That comes out to $1,434 per year.
Average grocery bill for 1 person
If you're a single adult, depending on your age and sex (the USDA estimates are higher for men and lower for both women and men 71 and older), look to spend between $229 and $419 each month on groceries.
“A smaller household may find it better to shop weekly sales and to buy smaller amounts, to not only stay on budget but prevent food waste,” she said. “But if it's a larger household, it may pay to do bulk shopping less often, like on a monthly basis.”