Build A Better Grocery Budget
By Kimberly L. Stewart
Fall 2008
If your grocery budget seems tighter than the collar on a military uniform, you aren’t imagining things. In the past year, food prices have risen by double-digit rates. The pinch is particularly painful for everyday staples such as milk, eggs, bread, cereal and cooking oils.
While ever-increasing gas prices may seem like a bigger threat to your household budget, the average household spends less than five percent of its budget on gas but more than 14 percent on food.
Why are prices so high? At the top of the blame game are higher oil prices, which hike production and transportation costs. An important factor is rising demand for corn and soy to make alternative fuels for ethanol and biodiesel. Corn prices have more than doubled and soybean prices tripled during the past two years, according to commodity analysts. Wheat harvests are down, too. Since wheat, corn and soy form the basis for staples such as oils, sweeteners, flour and livestock feed, every sector of the food chain is affected.
The Department of Agriculture (USDA) anticipates that food prices won’t right themselves anytime soon; in fact, economists say food prices will continue to rise by at least five percent through the coming year. So, paying attention to where and how you shop for food can make a big difference in cutting your expenses.
The first step in gaining control is to classify your family based on how much you spend (or want to spend) per month on groceries. Are you a thrifty, low-cost, moderate or liberal shopper? The USDA identifies shoppers in these categories, based on monthly grocery costs for a family of four (as of April 2008):
- Thrifty: $501.60
- Low-Cost: $635.50
- Moderate: $779.60
- Extravagant: $964.80+
Once you have identified your respective shopping budget, make a list of your most commonly purchased items and monitor the prices at the commissary and two of your favorite grocery stores for a few weeks. Take a calculator and notebook with you and start comparison shopping. Prices may differ by as much as a few dollars for the same item in a different store. For this reason, you may need to shop at more than one store.
Commissary prices generally are at least one-third less than off-base stores. If the nearest commissary is not in close proximity, plan a commissary stock-up trip for non-perishable items and purchase fresh foods weekly at a local store or farmer’s market.
If you prefer to comparison shop from the convenience of your home, go to www.mygrocerydeals.com and compare specials from multiple grocery stores based on zip codes. You may be surprised to find that “bargain-price” stores may not always have the most practical lowest-cost items. Bulk shopping may seem like a good deal, but the bargain isn’t worth it if you can’t store or consume a gallon jar of pickles, for example.
Store brands can help you pinch pennies in a big way – anywhere from 23 to 39 percent lower than branded items, according to A.C. Nielsen research. The private-label grocery brands often contain the exact same ingredients as the comparable national brand, without the high marketing costs and lofty price tag.
If you absolutely must have a national brand, clipping coupons can lop off as much as 20 percent of your weekly grocery bill. If you can’t find your favorite brands among the newspaper coupons, look on the Internet at www.couponmom.com or www.smartsource.com. You also can call the manufacturer; often they will send coupons to you at a significant discount and maybe even throw in a free item.
Finally, plan meals ahead rather than on your way home at 5:00. Last-minute grocery shopping on your way home from work or the kids’ soccer practice is fraught with opportunities to buy impulsively, choose unhealthy foods and pay more for costly convenience foods. It costs less than a dollar per day to consume four servings of fruits and vegetables, if they are prepared at home.
While eating at home is less convenient than eating out, it is far less expensive, you likely will eat healthier and you should enjoy more quality time with your family.
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Kimberly Lord Stewart is the wife a retired naval officer, editorial director of Functional Ingredients magazine and author of “Eating Between the Lines,” a supermarket shopper’s guide to the truth behind food labels (
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Go For The Grocery Bargains
- Look for store brands.
- Stock up on seasonal/sale items (as long as they won’t go to waste).
- Compare unit pricing.
- Use coupons.
- Stick to your list.
- Buy less meat, soft drinks, cookies, crackers, chips, deli, bakery and convenience items.
- Don’t forget your commissary.