Average Cost of Groceries Per Month

Microsoft 365 Life Hacks > Budgeting > Average Cost of Groceries Per Month

June 29, 2022

It can be difficult to know how much money to set aside for a monthly grocery budget. This primer can help you make that determination, no matter how big your family is or how much money you have in the budget.

Average Cost of Groceries Per Month – Microsoft 365 (1)

How Much Should You Spend on Groceries Per Month?

Determining how much money you should budget for your groceries every month can be difficult because there’s no one-size-fits-all answer. There are several factors that come into play when determining a household budget and how much money should be allocated to groceries. According to the United States Department of Agriculture (USDA), things that should be considered when creating a grocery budget include:

How many people are in your household
Each person’s age and gender
Your monthly household budget/li>

A family with two adults and two teenagers will go through significantly more groceries every week than a single adult. But with this in mind, the USDA has created monthly food reports that can help provide some guidance in terms of grocery spending. These plans estimate how much money is spent for families of various sizes and account for different types of fiscal flexibility. A family on a tighter budget, or one with lower income, will certainly spend less per month than a family of the same size who is a little more liberal with their grocery shopping.

These USDA food plans are broken into four different spending levels and account for different genders and age groups.

Average Cost of Groceries Per Month – Microsoft 365 (2)

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Average Cost of Food per Month for 1 Person

The average adult spends between $212 and $405 per month on groceries. This range encompasses all financial brackets and is indicative of a realistic monthly grocery budget.

A single adult male spends between $264 on a thrifty plan and $405 on a more liberal plan. A single adult female’s monthly grocery spending ranges between $212 and $358.

Average Cost of Groceries per Month for 2 People

As you might expect, grocery bill for two people is a little over double the cost for a single person. However, there are some discrepancies between ages and genders.

A male and a female between the ages of 19 and 50 who are grocery shopping as a household can expect to spend between $477 a month if they’re being thrifty, and $763 if they’re being a little more freewheeling with their spending. A similar couple between the ages of 51-70 years old averages a monthly grocery expenditure of $430 – $713.

Average Food Cost per Month for Larger Families

Once kids become involved, monthly grocery budgeting becomes a little more complicated. Children who prefer to graze throughout the day can turn into bottomless pits as teenagers, and their endless appetites can cause a monthly grocery bill to balloon. As babies become acclimated to solid foods and age into independent toddlers who absolutely must eat everything their parents do, grocery costs can increase as well.

A husband and wife who have two children, aged three and seven, would average between $798 and $1,277 per month on groceries. As the three-year-old turns four, those parents could expect to see $12 to $14 a month in additional grocery costs. When their older child reaches nine, the monthly grocery bill might increase by $27 to $43.

What Can Affect How Much a Family Spends on Groceries?

There are many variables for how a family creates their budget and determines how much to allocate for groceries.

Income and expenses
Two doctors will certainly bring home more per paycheck than two assembly line workers. In families where only one parent works, or single parent households, that one paycheck must stretch to cover all family expenses. Single, low-income parents must consider paying for their homes, childcare, utilities, transportation, and groceries, and may be more inclined to be extremely thrifty when thinking about groceries. They may buy in bulk and may be less able to afford fresh produce. This may not be a concern for someone who is less worried about their ability to pay all their bills every month.
The cost of goods
Prices on meats and fresh produce can vary wildly depending on supply and demand, which may not be of much concern to higher-earning families. However, a single-income household with multiple kids would be majorly affected by these fluctuations. An affluent family might be more likely to buy name brands, try specialty one-off products, and shop at pricier stores. A family who is more budget-conscious might stick to store-brand items and may do more of their shopping at discount grocery chains. In some lower-income and rural areas, food deserts are a real problem, which can lead to families shopping for groceries at non-traditional locations like dollar stores.

Determining Your Monthly Grocery Budget

Before deciding how much money to budget for food, you need to think about your overall household budget. To get a clear picture of where your money is going, it may be helpful to collect all your information in one place by using a family budget planner. No matter the size of your family or your income, this helpful worksheet can help you visualize your family’s spending habits. Some of these budget line items might include:

Rent or mortgage
Household utilities
Transportation, like a car payment and car insurance or passes for public transportation
Health insurance, if it isn’t tied to an employer
Childcare
Cellphone bills
Monthly subscriptions: storage units, streaming services, etc.

Once you have a better understanding of your family’s overall budget, you can create a food budget to see how much you’re spending every month and where you could save or splurge. A healthy awareness of your family’s financials can go a long way.

Every household is different. Understanding your financial circ*mstances and making a food budget that reflects this can help you to find a monthly cost of groceries that works for you, your family, and your income.