The Consumer Expenditure Survey released in 2022 provides a rough estimate that an average American spends approximately 12.8% of his income per year on food. So how much would people spend on food a month in the US?

Well, it is estimated that Americans would spend an average of $400 to $800 on food each month. A person’s food spending changes with the locality as well as the family’s size and eating habits.

Besides, whether you buy lunch on the way to work or you make dinner for your family every day; food certainly is and will remain a crucial part of your everyday life.

Once you are clear about what drives your spending and what the hurdles are, budgeting becomes an easy task.

How much you spend on food a month in the US
How much you spend on food a month in the US The list of spendings of US citizens in 2023 Foolcom

Factors Affecting How Much You Spend on Food a Month in the US?

Spending habits are different for everyone and hence assessing the average monthly spending on food depends on numerous factors such as: 

Income Level

How much people spend on food a month in the US is directly related to their income.

High-income earning households will have more disposable incomes to cater for grocery food and dining out. For example, a household that earns less than $15000 in a year, spends $352 per month on the food bill, whereas the family that earns between $70000 and $90000 annually salary can afford to spend $623, almost double, on the same food bill.

Household Size

The larger the household, the bigger your food bill would be as there are more people to feed and care for. Moreover, families with members of different ages and dietary needs cater to different food preferences which also leads to variations in food costs. 

Location

Food costs are also influenced by where one lives. The experience of living in extremely lively towns in America can make these costs more expensive while the rural areas are those where the budget can be relieved. 

For instance, groceries in New York  City are always more costly than groceries in some small towns in the Midwest.

The average food cost in the US. How much you spend on food a month in the US
How much people spend on food a month in the US The average food cost in the US 2023 Moveorg

Eating Habits

The more you understand your consumption behavior and eating patterns, the better you can estimate how much you spend on food a month in the US. 

Most likely, a person who regularly orders takeout or dines out is going to be spending more on food than one who tends to eat at home more often. In 2021, it was recorded that the amount of food eaten away from home saw a 20% increase which is an additional burden of expense for the consumer.

Shopping Choices

Shopping at upscale supermarkets or choosing organic and specialty products may be the reason why you spend more on food. On the contrary, bulking and shopping at discounted stores may provide saving opportunities. Your choices in brands and types of food (e.g., fresh vs. frozen) also play a role.

Groceries vs. Dining Out: Where Do Americans Spend More?

In the last few years, Americans have preferred eating out rather than grocery shopping. In 2022, it is said that about $475 was spent by Americans on groceries and $303 on dining out per month. A fast-paced life has motivated many to the convenience of eating out, which has made them spend 20% more on restaurants than groceries.

The post-pandemic urge to socialize and the charm of restaurant dining after months of isolation also played a huge role in making it a preferred choice for many.

How much you spend on food a month in the us. Dining out
How much you spend on food a month in the us Dining out

Challenges in Managing How Much You Spend on Food a Month in the US

Managing a food budget is a challenge in itself which becomes even more difficult when dietary preferences, such as gluten-free or organic, come into the picture. Such products can be more expensive and may not always be available, making it difficult to predict food expenses. 

The growing grocery prices also contribute to the pressure. As stated, The increase in grocery purchases by 8% in the year 2022 is in line with the inflation trend of almost all goods and services. While the impulsive purchases of items like snacks and drinks quickly consume the budget, the lack of meal planning has made buying convenience food easier which leads to overspending.

Simple Tips to Manage How Much You Spend on Food a Month in the US

Managing your monthly food spending doesn’t have to be complicated, here are some simple tips to keep in mind when you are deciding how much to spend on food a month in the US.

  • Meal Plan: A weekly meal plan can be a way to protect you from impulse buys and it also will save you some money.
  • Buy in Bulk: If you find some items on sale, consider buying them in bulk to save money.
  • Use Leftovers Creatively: Turn the leftover food into new meals to cut down on human-generated food waste.
  • Compare Prices: Discover if they have the same item for different prices at different locations, then choose the cheapest one.
  • Cut Down on Snacks: Reduce junk food consumption to lower the family budget and improve your well-being.
  • Grow your Food: Transform your backyard into a nursery or engage in container gardening to gain some health benefits.
  • Select Generic Brands: Generic products are usually just as good as the name brands but cheaper.
How much you spend on food a month in the us. Shopping list
How much you spend on food a month in the us Shopping list

Conclusion on How Much the Average Person Spends on Food a Month in the US

While there’s no one-size-fits-all answer for how much people spend on food a month in the US, understanding various factors can help you assess your spending habits, potentially save up money, and make informed decisions about your budget.

Sources:

  1. https://www.bls.gov/news.release/pdf/cesan.pdf
  2. American Households’ Average Monthly Expenses | The Motley Fool
  3. Consumer Expenditures in 2021: BLS Reports: U.S. Bureau of Labor Statistics
  4. https://www.nerdwallet.com/article/finance/how-much-should-i-spend-on-groceries
  5. Average U.S. household food expenditure by income, 2022 | Statista
  6. https://www.move.org/the-average-cost-of-food-in-the-us/
  7. https://www.nerdwallet.com/article/finance/how-much-should-i-spend-on-groceries