Check it out: This is what the average household spends on grocery costs per month

Food prices in the past few years have had a noticeably slimming effect on consumers’ finances, causing many to empty their wallets in order to fill their carts.

Customers went bananas when Trader Joe’s recently raised the price of the yellow fruit by four cents, marking the grocery chain’s first price adjustment in over two decades. Though the shift from 19 cents to a new 23-cent sticker price may seem inconsequential, that roughly 20% increase sparked another discussion, leading people to ask: “How much should I be spending on groceries every month?”

We researched the average grocery cost per month across varying household sizes across the U.S. — here’s what we found.

How much does the average household spend on groceries per month? 

The average American household spends an average of $475.25 a month on groceries, according to the most recently available dataset from the U.S. Bureau of Labor Statistics from 2022. That’s a total of $5,703 spent on groceries in a year.

Food costs and prices of common household goods have been volatile since the pandemic. But here’s the good news: Price increases have stabilized over the past year. Grocery costs increased by just 1.2% over the past 12 months, according to the Consumer Price Index (CPI) report from March 2024. In contrast, 2022 saw increases of over 13%.

Although any increase is still noteworthy, the same CPI study found that grocery shopping (“food at home prices”) rose less than 1% over the last six months, while dining out (“food purchased away from home”) rose about 2% over the same time period. 

Curious how your grocery expenses stack up compared to other U.S. households? The U.S. Department of Agriculture’s Monthly Cost of Food Report from Jan. 2024 provides a suggested monthly budget by age group and gender “to provide nutritious, prepared at-home meals.” This report also breaks down varying grocery spend across four levels: thrifty, low-cost, moderate-cost, and liberal — let’s see how each plan measures up.

Suggested USDA grocery budgets

All four food plan prices are updated monthly by the USDA, adjusted for inflation, and take into consideration current dietary recommendations. The most economical tier of the four levels, the Thrifty plan “represents a limited food budget” while offering nutritious at-home meal costs and is used to determine the maximum Supplemental Nutritious Assistance Program (SNAP) benefit for qualifying households.

Thrifty plan

Low-cost plan

Moderate-cost plan

Liberal plan

Average grocery cost per month for 1 person in a household

Considering the Thrifty and Liberal plan averages, the monthly grocery cost for an adult male falls between $275.63 and $434.33, while the average for an adult female ranges from $238.46 to $384.93.

Average grocery cost per month for 2 people in a household

The average grocery costs for a two-person household across the Thrifty to Liberal plans range from $476.92 to $868.66:

• Male and female living together: $514.09 to $819.26 
• Two adult females: $476.92 to $769.86
• Two adult males: $551.26 to $868.66

Are food costs going up? 

With the recent price increase of Trader Joe’s bananas still fresh in our minds, it’s hard not to feel like the average costs of groceries per month are skyrocketing across the board. 

Increasing food costs are impacted by many factors, including inflation, supply chain disruptions and shifts in demand for products. Over a 12-month period from Jan. 2023 to Jan. 2024, average food costs per month were indeed rising across the board, with an average of a 2.6% increase.

It’s important to take a closer look, as certain food categories are increasing significantly more than others; namely, food away from home (up 5.1%) and non-alcoholic beverages (up 3.4%). There were also a few categories in this time period that actually saw trends of price decreases, including dairy and related products (down 1.1%) and meat, fish, poultry and eggs (down 0.9%).

Changes from Jan. 2023 to Jan. 2024

• All food costs: up 2.6%.
• Food at home: up 1.2%.
• Food away from home: up 5.1%.
• Cereals and bakery products: up 1.5%.
• Meat, fish, poultry and eggs: down 0.9%.
• Dairy and related products: down 1.1%.
• Fruits and vegetables: up 1.1%.
• Non-alcoholic beverages: up 3.4%.

Food prices are predicted to increase at an average of 2.5%, but this is still at a slower rate than in previous years. In the future, food at home prices are predicted to increase an average of 1.6%, while food away from home prices are predicted to increase an average of 4.1%.

How can I set a food budget?

Determining the right food budget will depend on several factors, including household size and dietary needs. The food budget to suit one person for a month will look different from the average monthly grocery bill for two people. If you’re starting from scratch, the USDA monthly budget plans are a fantastic place to start budgeting for you and your family.

For instance, a family of four with the means to pay for a low-cost to moderate plan can compare the numbers based on each household member’s age and gender. Adding up each weekly and monthly breakdown can help one understand what the total estimated cost of groceries will realistically look like.

When it comes to food, dining at home is only half the story. You’ll also need to consider your average spending at restaurants each month, as well as takeout and all the coffees in between. A great way to do this is looking at bank statements and credit card bills over the past several months.

After further research, you may determine you need to reduce your restaurant budget in favor of more home-cooked meals. As a bonus, home cooking can often provide better nutrition and lead to a healthier diet. However, setting your household’s monthly food budget depends on many factors, such as lifestyle choices, dietary needs and even the proximity of affordable grocery stores.

How can I save money on groceries?

Saving money on groceries starts by combining a few everyday tricks that can amount to a stockpile of cash over time. Beyond traditional couponing, apps such as Ibotta or the Capital One Savings browser extension allow you to earn cash-back at many grocery stores while stacking coupons, allowing you to double-dip in savings.

“Many families are also saving money by shopping sales and buying seasonal items,” said Allison Karpyn, co-director of the Center for Research in Education and Social Policy (CRESP) and professor of human development and family sciences at the University of Delaware. 

“Stores like Aldi and Lidl too have become an attractive lower-cost grocery store for many. Sticking to a list and planning meals to avoid impulse buys and wasting food is also always a good idea. Taking a few moments before you go to the store to make a meal plan or keeping a weekend planning routine can help.”

Households with heavy supermarket spend should take a closer look at some of the best credit cards for groceries. Take, for example, the Blue Cash Preferred® Card from American Express (terms apply, rates & fees), which earns one of the highest rates on grocery spending at U.S. supermarkets that you’ll find, plus strong rewards on transit and select U.S. streaming services. For an annual fee of $0 intro annual fee for the first year, then $95, you’ll earn 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations, 3% cash back on transit and 1% cash back on other purchases. Cash back is received in the form of Rewards Dollars that can be redeemed as a statement credit or for eligible items at Amazon.com checkout.

An important caveat is that some of these grocery bonus categories will specifically exclude warehouse clubs like Costco or Sam’s Club or superstores like Target and Walmart. Ultra-loyal shoppers of these brands may consider these in-house cards, such as the Costco Anywhere Visa® Card by Citi * The information for the Costco Anywhere Visa® Card by Citi has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. or the Target RedCard™ Mastercard * The information for the Target RedCard™ Mastercard has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. , with the latter offering a debit card version too. 

The availability of grocery stores near you can significantly impact your rewards potential. That said, there are cash-back cards like the Citi Double Cash® Card, which earns 2% cash back on purchases — 1% when purchases are made and another 1% when they’re paid off, plus, for a limited time, 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24, or the Wells Fargo Active Cash® Card, which also offers 2% cash rewards on purchases. Both have no annual fee.

However, credit cards should only be in question if a user is able to spend within their means and not carry credit card debt from month to month. Otherwise, the interest charges, late fees and impact on your credit score can quickly negate the benefit of earning rewards in the first place.

Looking to save money in other places you tend to spend? We’ve got you covered with our list of the best credit cards for every type of spending

Is buying groceries cheaper than eating out?

There will be general exceptions to the rule, but the average cost of groceries per month will typically be cheaper than eating out. With any decision in life, there’s a tradeoff. Fast food may be quicker than food shopping and cooking, but home-cooked meals will often be more nutritious with less salt and fat content. Not to mention, restaurants need to mark up the price of food to account for ingredients and labor, so cooking at home tends to be more of an economical choice. 

^{For rates and fees for the Blue Cash Preferred® Card from American Express please visit this page.}