Grocery shopping on a budget: How to cope with high prices

Paying for groceries comes with some sticker shock these days. No matter what you fill your shopping cart with, you’re bound to feel some pain at the checkout aisle. 

But creating a sensible grocery budget can help you take back control. Of course, the more realistic your budget is, the more likely you’ll be to follow it. So, identifying a reasonable amount to spend is your first step.   

Next is learning a few smart ways to save, including knowing when and how to splurge. You can also explore getting rewards for the food you buy—like how a Discover^® Cashback Debit account can provide a bonus for every dollar you spend. 

It all comes together to make budgeting for groceries an achievable and helpful goal. 

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Rising costs hit your grocery budget where it hurts

It’s no secret that food costs have soared in recent years. According to the U.S. Department of Agriculture (USDA), food-at-home prices rose 5% from 2022 to 2023 and an even more significant 11.4% from 2021 to 2022—both increases are well above the prior 20-year annual average growth of 2.5%. 

And high prices aren’t likely to go away anytime soon. The good news is that compared to eating out, preparing your own food already puts you one step closer to spending less. The next thing you need to decide is exactly how much you can afford to spend when you shop.

How do I set a budget for grocery shopping?

Unfortunately, there isn’t one figure for how much is typically budgeted for food. That’s because families vary in size, and individual grocery needs can fluctuate depending on diet, age, lifestyle, and location.

However, the USDA publishes annual reports on monthly food budgets based on gender and age. It also separates the plans into four cost categories: thrifty, low-cost, moderate-cost, and liberal. 

For example, according to the USDA’s thrifty food plan for January 2024, the average weekly grocery budget (in the continental U.S.) for a single male ages 20-50 was $70.10 but only $55.90 for a similar-aged single female. For families, the thrifty food plan comes in at an average weekly cost of $225.20 for two adults and two young children. 

While this USDA spending data isn’t a one-size-fits-all recommendation, it can be a helpful starting point for grocery shopping on a budget. 

Your grocery budget is set; now stick to it

Going over budget on groceries is an unappetizing prospect for most shoppers. But, sticking to your budget can be difficult in certain situations—such as when you entertain guests or experiment with new recipes. That’s why it’s important to make these five key strategies part of your routine:

1. Create a detailed shopping list 

Planning your meals in advance is helpful because it can establish a ballpark cost for each grocery run. If one or more of your recipes ends up breaking the budget, you can consider swapping it for a more economical alternative.

2. Check for deals and discounts 

Yes, you can still use paper and digital coupons to help you save when you shop. Another option is to sign up for members-only deals at your local grocery store. Doing so can help keep costs down, and there’s usually no fee for being a member. 

3. Buy in bulk

Opting to buy in larger quantities usually translates into a lower cost per item, which is handy for things you use frequently or items with a long shelf life. Jumbo packs of toilet paper can help you save (if you have the room), but big bags of fresh avocados will likely lead to waste—of both food and money. 

Tip: If you find yourself frequently throwing out expired food or other items, check out this guide to a zero-waste lifestyle.

4. Don’t snub store brands

The quality of today’s store brands has come a long way over the past decade, and many of these lower-cost products are worth trying.

5. Pay with a debit card that pays you back 

With the Discover Cashback Debit card, for example, you can earn 1% cash back¹ on up to $3,000 in debit card purchases every month.  

To splurge or not to splurge?

If you want to treat yourself to premium items now and then, you can probably snag a couple of luxury groceries without blowing your weekly budget. However, those few small indulgences can add up if you’re not careful—so scout for deals that still fit your grocery budget.

And remember, certain grocery items tend to inflate the tab even when you only purchase a relatively small amount. Think imported/specialty foods and alcohol. (Word to the wise: Taxes on spirits may be higher than on beer and wine.) 

Proceed to checkout

Grocery shopping on a budget won’t look the same for every shopper. However, getting some practice for how to grocery shop on a budget can reduce stress when it comes time to pay for other necessities like rent, utilities, clothing, and transportation.

And like most things, the grocery budget you set isn’t carved in stone. Review and revise your grocery spending often to see if there are additional ways to save or cut back on food waste. Bon appétit! 

If you’ve ever struggled to create a budget, you’re not alone. Check out these 5 basic budgeting tips that can help you get started, even if making (or sticking to) budgets hasn’t worked for you in the past.

The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover Bank or its affiliates.

¹See Deposit Account Agreement for details on transaction eligibility, limitations, and terms.

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