How to Set an Accurate Monthly Grocery Budget

The Average Cost of Groceries Per Month

There isn’t an easy answer to this, since the average amount spent on groceries per month varies depending on many factors, like the household size. A family of 3 will have a much different budget than a grocery budget for 2! Location, age, and sex are other significant factors when it comes to how much you should spend on food. For example, a single adult male may spend $264 to $405 per month on groceries on average, while a single adult female will spend $212-$358 on average.

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How to Budget for Groceries

There are a few different ways one can easily calculate a realistic grocery budget.

Use a Budget Planner

In order to establish your monthly grocery budget, start first by determining your overall household expenses. A family budget planner even if you are a single person is a great place to start – this easy-to-use spreadsheet allows you to track how much you spend on your mortgage or rent, electricity, gas, cellphone bills, and more. Your remaining balance in the planner will automatically be calculated for you.

Once you gain a better idea of how much you are spending monthly, use this free food budget planner to track how much you are spending on groceries. This spreadsheet allows you to log food categories, exactly what you are buying, the quantity, price per item, sum, and where you are buying it (for example, grocery or home delivery). Tracking how much you are spending on things like sweets, bread, fruits, vegetables, and meats will make it simpler for you to set a realistic monthly grocery budget based on your dietary needs. Maybe you are spending more than you realized on ice cream – creating a visual of what you are buying and how much you are spending can help you determine what you should cut back on purchasing, or what you can splurge on.

Follow the 50/30/20 Rule

The 50/30/20 rule is an easy and popular way to plan your monthly spending and can be helpful to create a budget for groceries. This rule dictates that:

• 50% of your post-tax income should be spent on needs. This category includes items that are absolute necessities, like rent, healthcare, groceries, and insurance.
• 30% of your post-tax income should be spent on wants. This category includes items that are not essential, like streaming services, dining out at restaurants, or trendy new shoes.
• 20% of your post-tax income should be spent on savings. This category includes investments, IRA contributions, or an emergency savings account.

Here’s an example of the 50/30/20 rule if your after-tax income is $2,500:

• Put aside $1,250 for needs
• Put aside $750 for wants
• Put aside $500 for savings

Once you calculate recurring payments in the needs category like rent and healthcare, you can use the remaining money to determine your monthly grocery budget. Again, using a family budget planner and a food budget planner will help you create a realistic grocery monthly budget.

Use the USDA (U.S. Department of Agriculture) Food Plans

Each month, the USDA creates food plans for a healthy diet in four different spending categories:

• Thrifty
• Low-cost
• Moderate
• Liberal

These categories also tell you how much you can spend weekly and monthly on groceries based on age (for example, a growing 15-year-old will eat more than a 70-year-old) as well as sex (males tend to eat more than females). So, as of August 2022, a female who is 19 through 50 years of age and wishes to opt for the low-cost plan will spend $304 per month on groceries, while a male on the low-cost plan in the same age range will spend $350 per month on groceries.

Make sure to read the USDA guidelines carefully in order to determine an accurate monthly grocery budget – their food plan chart will help you determine the grocery budget for any household size, whether it is for a family of 4 grocery budget or a grocery budget for 2.

Spending money on food is something you just can’t avoid. But by now, you have all the tips and tricks you’ll need to budget for groceries and shop with confidence.