How Much Should One Person Spend on Groceries Each Month? Average Costs and Insights
Ever feel like your grocery bills are eating up more of your cash than they should? Many people would agree. Figuring out a realistic monthly food budget for one can be tricky. But, armed with the right tools and knowledge, you can keep your costs low and your meals delicious. Keep on reading to learn about average grocery costs and how to manage them.
Key Takeaways
- Average monthly grocery costs for one person range from $239 to $529, according to USDA food plans.
- USDA food plans include Thrifty, Low-Cost, Moderate-Cost, and Liberal, each offering different spending guidelines.
- Grocery costs are influenced by dietary preferences, location, and shopping habits like bulk buying or coupon use.
- Rising food costs are driven by inflation and supply chain disruptions, as indicated by the Consumer Price Index.
- To set a food budget, track spending, plan meals, and adjust for dietary needs to manage costs effectively.
- Cooking at home is generally cheaper than dining out, though eating out saves time and effort.
- A recommended monthly budget for one person is around $300 to $400, with $800 to $1000 for a family of four.
- Allocate 10-15% of income for food, adjusting based on dietary needs or personal preferences.
Average Monthly Grocery Cost for One Person
To create a realistic grocery budget for one, we can turn to national averages. According to the U.S. Department of Agriculture (USDA), one adult’s average monthly grocery cost ranges from $239-$529. There are, of course, factors like age, gender, and dietary habits to consider. So, let’s break it down more.
The USDA has determined four official food plans alongside monthly averages based on different spending levels: Thrifty, Low-Cost, Moderate-Cost, and Liberal.
USDA Grocery Budget Plans
So, how much does one person spend on groceries a month? The USDA provides estimates through the food plans mentioned above. These plans serve as a framework to estimate your monthly food budget for one person. Let’s take a look:
Thrifty Plan
This is the most economical of the food plans. The thrifty plan is designed for those who aim to maintain a relatively healthy diet while minimizing costs. People following this plan typically shop for generic brands, purchase in bulk, and choose seasonal produce.
As of August 2023, the average monthly cost for one adult is:
- Male (age 19-50): $268.29
- Female (age 19-50): $239.02
Low-Cost Plan
This plan allows for more flexibility in food choices. Similar to the Thrifty, it also emphasizes cost-effectiveness. A person following the low-cost plan may opt for an occasional brand-name product and can accommodate some ready-to-eat items.
A monthly food budget for one person with the low-cost plan is:
- Male (age 19-50): $353.90
- Female (age 19-50): $309.16
Moderate-Cost Plan
If a person follows this plan, they usually prefer a balance between cost and variety. Typical monthly food expenses for this plan include higher-quality ingredients, including premium cuts of meat, dairy products, and fresh seafood.
Average monthly costs are:
- Male (age 19-50): $437.76
- Female (age 19-50): $385.86
Liberal Plan
The liberal plan is the most generous USDA classification. It includes an extensive variety, frequent use of ready-to-eat meals, and organic ingredients.
Average monthly costs under this plan are:
- Male (age 19-50): $528.82
- Female (age 19-50): $477.07
How Much Should One Person Spend on Groceries?
Deciding how much to spend on groceries is more art than science. As I mentioned above, the average price of groceries per month isn’t a fixed figure. Instead, it fluctuates based on a person’s needs and circumstances.
For one, dietary preferences play a significant role. If you follow a strict vegan or organic diet, your spending will likely be higher due to specialty item prices.
Geographical location matters, too. People in urban and high-cost areas report steeper grocery bills than those in rural regions.
Lastly, your shopping habits also influence your monthly grocery costs. Using coupons, buying in bulk, or watching for sale can help those looking to save a little money.
Are Food Costs Going Up?
Simply put, yes. Food costs have risen over the years due to inflation, supply chain disruptions, and global trends.
According to the U.S. Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI) for food has steadily increased yearly. Both the “food at home” (groceries) and “food away from home” (restaurants) categories have experienced price hikes. While the rate of increase fluctuates, the overall upward trajectory affects everyone’s monthly grocery costs.
How to Set a Food Budget?
Learning how to save money on groceries is one hack for better financial management. But you want to ensure you’re not limiting yourself to only the essentials. So, I’ve compiled the most actionable steps for setting up a monthly food budget for one. Let’s dive in:
- Save grocery receipts.
- Monitor spending habits through budgeting apps.
- Identify opportunities for cutting costs.
- Determine how much money you have after fixed expenses (rent, utilities).
- Refer to USDA food plans when budgeting for groceries.
- Factor in dietary restrictions, health goals, and personal preferences.
- Outline meals for the week and avoid impulse purchases.
- Choose meals that utilize affordable ingredients like beans, rice, and seasonal vegetables.
- Cook home as much as possible.
Buying Groceries vs Dining Out
Generally, cooking at home is the more cost-effective option. When you buy groceries, you pay for the raw ingredients, which can last you multiple meals. This reduces the average cost per serving.
On the other hand, dining out includes markups to cover restaurant overheads like labor, rent, and utilities. This makes every meal you eat at a restaurant more expensive than those you eat at home.
However, it is worth noting that cost is not the only factor here. Restaurants save you time and meal prep, not to mention shopping, cooking, and cleaning up after.
Ultimately, your monthly average food cost will be less if you cook at home. However, your schedule and how much time you can dedicate to cooking will likely make the decision for you.
Establishing a monthly food budget for one balances lifestyle and financial goals. USDA has food plans and classifications to help you identify where you stand. Combine that with dietary preferences and lifestyle choices, and you will get your estimate. Make sure to view this budget as a number that moves with the times, as inflation and rising food costs will likely affect your spending.
FAQ
With a process as detailed as food budgeting, it is natural to have some questions. Let’s take a look at the most common ones asked by readers:
What is a Good Monthly Food Budget for 1 Person?
A budget for one person depends on your habits and lifestyle. But if I were to say a common ballpark figure, it would be around $300 to $400 monthly. This amount (if available) lets you choose between various foods without going overboard.
How Much of My Monthly Income Should Go to Food?
A general rule of thumb is to allocate about 10-15% of your take-home pay to cover groceries and dining out. Of course, if you’re a foodie or have specific dietary needs, you might need to adjust that number.
How Much Should a Family of 4 Budget for Food?
You are likely looking at a monthly grocery budget of around $800 to $1000. This can vary based on your kids’ ages and how much everyone eats. If you want to implement and stick to a budget, I’d recommend meal planning and buying in bulk. But just for comparison, the average monthly grocery bill for two adults falls between $500 and $700. Family financial planning can seem stressful, but with a little budgeting and organizing, it can be done.
