A food bill is unique among bills when compared to the rest of the required expenses within a household. Unlike a $70 cable bill or a $200 electric bill that a household pays on a specific day of every month, the amount of a grocery bill often fluctuates much more than other necessary costs, with a trip to the store for milk and eggs priced at only around $10, and a full-cart trip priced at upwards of $100.
The Food Marketing Institute, which studies the grocery shopping industry and shopping trends, says that the main types of trips to the grocery store are stock-up trips, when people fill up carts with items they’ll use over the next week or more; fill-in trips, when people buy items they run out of between stock-up trips; special purpose trips, when people have a party or special reason to visit the grocery store outside of regular household needs; quick food trips, when people buy just a few quick food items; and quick non-food trips, when people buy a few non-food household items like trash bags or toiletries.
Table by Erika Rawes/Data: USDA
Because people go to the grocery store so often and for so many different reasons, determining exactly how much is spent from month to month is a kind of a pain. The average consumer visits the grocery store approximately twice a week, and of course, the bill on each of these trips is seldom the same amount. Plus, how many times has someone gone to the grocery store planning to spend $50 and then came out of the store $200 poorer with a cart full of food he or she didn’t plan to buy?
Most households also eat away from home at least on occasion, which adds to the overall food bill, as well. With all of the trips to the store, both large and small, and all of the trips out to restaurants, an out-of-control food bill can send someone to the poor house. Do you feel like you’re spending too much money on food? Here are a few signs that you may be.
1. You spend much more than the average
(Photo by Sean Gallup/Getty Images)
In the past, people would track food spending using receipts, by writing down spending, or by using a checkbook ledger. These days, we have apps and online bank statements that make food budgeting a little easier, but it still requires a commitment. If, at the end of the month, your spending is substantially higher than other, similar households, this is a sign that your food bill is too high.
Each month, the U.S. Department of Agriculture publishes a food cost report, which indicates the typical cost of food at home for various different household sizes and spending levels. For instance, if you are a household of two 30-year-old adults and you spend $750 per month at the grocery store, your spending is considered liberal. Looking at the chart on the previous page, you can see that a thrifty grocery plan for your household size only costs around $390 per month.
According to the most recent Bureau of Labor Statistics consumer expenditure surveys, the typical household spends $2,625 each year, or around $219 per month, on food away from home. Those in higher income groups spend more on restaurants — around $370 per month — and those in the lowest income groups spend less, at around $104 per month.
2. You spend more on food away from home than on groceries
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The average price of a meal at an inexpensive restaurant is around $10, and the price of dinner for two at a midrange restaurant is around $45, according to Numbeo. Therefore, one meal for two at a midrange restaurant may end up costing you more than half of an entire week’s groceries (for a family of two on a thrifty plan).
The USDA reports that “between 2006 and 2009, households cut their inflation-adjusted spending on food prepared outside the home by 12.9 percent, about eight times the 1.6-percent decrease in at-home food spending.” Household income also declined during this time period. People had less, so they spent less on food away from home, which is a more of a luxury.
If your spending on restaurants exceeds your spending on groceries, this is a sign you’re spending on food away from home is probably too high.
3. Food is your largest expense
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For most households, housing is their largest expense, followed by transportation. In 2013, households spent an average of $17,148 on housing, which equates to around $1,429 per month.
If you eat at restaurants on an almost daily basis, or you buy expensive grocery options and frequently eat at restaurants, you may be surprised to see just how fast your overall food bill can add up. If you and your significant other eat dinner out at a decent restaurant five nights per week, that’s 22 restaurant meals (give or take) at a cost of around $45 per meal, or $990. Once you add in the cost of a few groceries, your food cost may end up exceeding the cost of your housing. If food is your biggest expense, then this is a sign that you’re spending way too much.
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