Many families buy too much food. Others buy too little. Typically, the average American family buys the wrong type of food. The reduction of a family’s food bill requires quantity and quality planning. One of the best ways to plan food purchases is to decide the family’s daily menu first, before buying. Few homemakers take the time and effort to actually write out daily menus, but once the habit is developed its benefits are obvious. Grocery shopping ceases to be a hunt-and-find weekly expedition; it becomes another step in financial planning.

Hints to Reduce Spending on Food

For a family of four whose Net Spendable household income is approximately $26,300 (gross annual income of $35,000), the amount spent on food should be 12 percent of the Net Spendable Income.¹ This includes all the food and beverages bought at a grocery store, including pet food. This does not include take-out food or eating out expenses; these go under Entertainment. If the family receives food stamps, the amount of food stamps should be added to the amount of cash spent to determine the total food category.²

The following are suggestions that can help families reduce their food expenses.³

1. Design your week’s menu around the weekly grocery store sale ads and always use a written list of needs. Arrange the shopping list according to the layout of the grocery store.⁴
2. Try to conserve gas by buying food for a longer time period and in larger quantities.
3. Avoid buying when hungry.
4. Use a calculator, if possible, to total purchases.
5. Reduce or eliminate paper products.
6. Evaluate where to purchase sundry items such as shampoo, mouthwash, and toothpaste. These are generally less expensive at chain drug store special sales.
7. Avoid processed foods, such as frozen dinners, cakes, and cookies.
8. Avoid processed and sugarcoated cereals.
9. Determine good meat cuts that are available from roasts or shoulders and have the butcher cut these.⁵
10. Try generic or house brand canned products. They are generally cheaper and usually just as nutritious.
11. Shop for advertised specials.
12. Use manufacturer’s coupons only if you were going to buy the item anyway and it is cheaper than another brand would be without a coupon. Find a store that will double or triple the coupon’s value. The only danger involved in the use of coupons is their tendency to encourage compulsive buying.
13. Use store coupons, competitor’s coupons, electronic coupons, check-out coupons, instant rebates, and mail-in coupons with the same cautions used with manufacturer’s coupons.⁶
14. When possible, purchase food in bulk quantities from large discount stores; the per-item cost is cheaper. Do not buy from convenience stores except in case of emergency.
15. Avoid buying non-grocery items in a grocery store, except when they are on special sale. These are normally high markup items.
16. Leave children at home, if possible, to avoid unnecessary pressure.⁷
17. Check every item as it is being "rung up" at the store and again when you get home.
18. Consider home canning whenever possible.
19. Search for bargains in the day-old baked goods, dented can, and meat-that-is-about-to-expire bins.
20. Do not grocery shop with a credit card.
21. Buy plain cereals and add your own extras, such as raisins, almonds, and dried fruit.
22. When shopping, look high and low. Usually the less expensive store or generic brands are on the top or bottom shelves.
23. When buying perishable foods, buy only amounts that can be used while they are still good.
24. When grocery stores sell out of an item that was on special sale, always get a rain check so you can buy the item at the reduced price when stocks are replenished.
25. Shop once a week at midweek or during off-hours. Typically store sales occur most often during midweek slow times.
26. Check smaller sizes. Many times smaller packages costs less per ounce than economy size or family size.
27. Join a food co-op. A food co-op is an organization of several families who combine their buying power to buy products in bulk, which can result in average savings of 15 to 20 percent. The savings with the food co-op are twofold. First, the labor: the cost of putting it on the shelf and storage. Second, quantity discount: some food wholesalers give an additional discount to members of the co-op who will purchase case lots.
28. Purchasing certain items at ethnic markets can often result in remarkable savings.
29. Guard against impulse buying. Allow only one item that was not on the shopping list.

Conclusion

Every family enjoys saving money. If the family food budget is greater than the recommended percentage, the above suggestions can help families reduce their expenditures for food and bring it more in line with the recommended percentage. However, if after using these suggestions families can live within their allocated food budget, any money they save can be put into their emergency savings account.