You’re standing in the grocery store checkout line, packing your bags as the cashier rings everything up. And that’s when you realize: this is a lot more expensive than it used to be. Between inflation, changing eating habits, and the rising cost of essentials, the average grocery cost per month has skyrocketed in recent years.
At Remitly, we know how much anxiety such price hikes can cause. Not only does it eat into your household budget, but it also raises the question of how much you should actually be spending on groceries every month. In this guide, we’ll break down what your food costs should be, different factors that could affect the bill, and tips that could save you money every month.
Let’s break it down.
What’s the average grocery cost per month in America?
The amount Americans spend on groceries varies widely, but national data gives us a good starting point. According to the US Bureau of Labor Statistics, the average household spends about $831 USD per month on food, which works out to about $9,970 USD per year.
But this figure changes quite significantly depending on various factors, such as household size. A single-person household will spend roughly $792 USD monthly, less than the average grocery bill for a family of four, which is at least $933 USD for the same period.
How US grocery prices have evolved over time
In most of the US, food costs have soared by as much as 30% over the past five years. This means that, even if your grocery habits haven’t changed at all, you’ll be spending noticeably more on groceries than you used to. For example, a cart worth $100 USD in 2020 will cost you $130 USD now.
Experts predict that prices will continue to rise in 2025 and 2026, especially for staples like milk, sugar, beef, and pork. However, the cost of eggs, poultry, and cooking oil is expected to decrease, while fresh vegetable prices will remain constant.
Factors that affect your monthly grocery budget
Grocery costs in the US don’t just exist in isolation; several factors can influence your monthly spending at the checkout line. While some of these are outside of your control, working around a few could help you save a bit of money.
Location matters
Where you live has a significant impact on your food costs, with hubs like New York and California being noticeably more expensive than, for example, somewhere in Mississippi or the Midwest. Larger cities tend to have higher costs overall, and this is especially clear when it comes to groceries.
Prices will generally vary depending on whether you’re in an urban, suburban, or rural area.
| Type of area | Typical grocery cost trend |
| Urban | 10–20% above the national average |
| Suburban | Comparable to the national average |
| Rural | 5–15% below the national average |
Naturally, living in major cities means you’ll have to allocate more to your monthly grocery budget.
Income and lifestyle choices
Your income level also shapes how you shop. Higher-income households often spend more on groceries and dining out, not necessarily because they eat more, but because they pick premium or specialty products to buy. These include organic produce, high-quality meat, and imported goods.
Then, there are dietary requirements and other lifestyle factors. For instance, someone with celiac disease will need to replace standard foods with gluten-free options, and those tend to be more pricey. The same can be said for vegans, vegetarians, and people on low-sodium diets, among others, who often have to choose alternatives that cost more..
Family size and age demographics
Larger families will spend more on groceries than smaller households would—after all, there are more people to shop for. Buying in bulk is a reliable way to lower the cost per person, but you’ll still need to keep your family’s demographics in mind when preparing your shopping list.
- Feeding teenagers costs more than feeding toddlers, as they require a higher calorie intake.
- Young children typically eat and snack more frequently throughout the day, which means you’ll have to buy more groceries. Some might be picky eaters, so you might have to hunt down unique—and often more expensive—items.
- Are there any older people in the household? They may need supplements or other specialized products to stay healthy, which can drive up the grocery bill more than you might expect.
Smart strategies to lower your grocery spending per month
The good news about all of this? You can lower your monthly grocery budget without needing to give up on healthy and nutritious meals. With a few smart habits, you and your family can still eat well without constantly worrying about how much it all costs.
Meal planning and preparation
If you want to cut your grocery expenses and take greater control over your food choices, meal planning is one of the most effective ways to do so. It’s quick and easy, and you need to put in just a little time. Here’s how you can get started:
- Plan weekly meals around what’s on sale or in season.
- Create a shopping list based on that menu—and stick to it.
- Batch-cook dishes like soups, casseroles, or stir-fries that can stretch across several meals. Here are some simple recipes you can try today.
- Use your freezer to store leftovers you can reheat later, reducing food waste.
Setting your menu in advance will significantly impact your weekly or monthly grocery budget. The average American wastes up to $1,500 USD on uneaten food every year, and meal planning is a practical way to cut down on that. It also ensures you’ll spend less without affecting the quality or healthiness of your meals.
Shopping tactics that work
How you shop can also affect your grocery bill. Some habits, such as using a shopping list, will help you save money and avoid impulse purchases.
Beyond that, several other smart shopping tactics stand out:
- Compare unit prices, such as cost per ounce or per pound, to find the best deals.
- Buy store brands instead of name brands, as they’re more affordable and taste almost identical.
- Shop once a week to save on fuel costs while avoiding the temptation to buy more.
- Use cashback apps like Fetch, Ibotta, and Rakuten for extra savings and rewards.
- Consult a food budget calculator to get an idea of your expenses ahead of time.
- Look for discounted items whenever you can.
- Shop at multiple stores to take advantage of more deals on essential items.
- Stack coupons as much as possible, especially when you can apply them alongside discounts.
If your local grocery stores offer loyalty or rewards programs, these can be worth signing up for. They might not guarantee immediate savings, but the benefits will accumulate over time.
Budget-friendly food swaps
Replacing a few of the expensive items on your shopping list can significantly cut grocery costs without compromising the nutritional value of your meals. However, the trick is to find alternatives that are both healthy and affordable.
| Swap this | For this | Why it works |
| Beef or steak | Ground turkey or lentils | High protein, lower cost |
| Fresh, out-of-season berries | Frozen berries | Nutritious and longer-lasting, lower price |
| Packaged snacks | Homemade popcorn or nuts | Cheaper and healthier |
| Bottled drinks | Filtered tap water | Virtually free |
| Brand-name pantry staples | Store brands | Similar taste, lower cost |
The more of these food swaps you make, the less you’ll spend on food every month.
Setting a realistic grocery budget for your household
Budgets are a great way to stay in control of your spending, but you must set realistic goals to ensure you stick to the plan. There isn’t exactly a one-size-fits-all approach to this process, but a few easy tips and tricks can help you create your ideal grocery budget.
The 50/30/20 rule is a great starting point. It encourages spending 50% of your income on essentials like groceries, rent, and utilities; 30% on your wants; and 20% on savings and paying off any debts. However, your food budget should take up 10–15% of your take-home pay.
A quick way to estimate your grocery budget is to multiply your income by 0.10. If your household earns $2,500 USD per month, this works out to approximately $250 USD for food. The calculation provides a basic target goal, and you can use budgeting apps to adjust the numbers according to your actual costs and spending habits.
Take control of your grocery budget today
Groceries are one of the biggest—and most flexible—parts of your household budget. By understanding the average grocery cost per month in the US and applying a few simple savings tips and strategies, you can slash your budget without sacrificing nutritious, healthy meals for you and your family
Start small with this: try planning one week’s meals, tracking your receipts, or swapping out a few high-cost ingredients. Over time, those small habits will add up to big savings—and a grocery budget that finally feels under control.
FAQs
How much should I spend on groceries per month for one person?
A grocery budget for a one-person household depends on several factors, from your budget to dietary needs. In general, you can expect to pay anywhere from $700–$800 USD a month, depending on your shopping and spending habits.
What percentage of my income should go to groceries?
Most financial experts recommend spending between 10% and 15% of your monthly income on groceries. If your costs are higher, review your meal planning and shopping habits to identify ways to lower expenses.
Are grocery costs higher now than they were five years ago?
Yes. Grocery prices have risen by about 30% over the past five years, according to the USDA. Some of the most significant increases have been in meat and poultry, dairy, fresh produce, and packaged snacks.
How can I reduce my average grocery cost per month without sacrificing nutrition?
You can eat well on a budget by cooking at home, focusing on whole foods like beans, buying seasonal products and store brands, and using meal planning apps to reduce waste. Affordable, nutrient-rich foods are worth it too, with eggs and bananas being prime examples.
Should I shop at multiple stores to save money on groceries?
It depends. Shopping at multiple stores can save you money if you know which items are cheaper at each location, but it could cost more in terms of gas and time.