Beat the Grocery Price Hike: Smart Tips for Shopping on a Budget

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Grocery shopping feels more like an obstacle course these days with prices skyrocketing. The Bureau of Labor Statistics reports that grocery costs have jumped by 25% since the pre-pandemic days. This sharp increase has left many of us scratching our heads (or panicking) at the checkout line, wondering how to keep our grocery bills from eating into our budgets.

A recent study by Qualtrics, on behalf of Intuit Credit Karma, revealed that a whopping 80% of Americans have felt the pinch of rising grocery prices. Even more concerning, over a quarter of them have had to skip meals because of it. It’s no wonder people are looking for ways to save.

Will Coleman, a chef and content creator who shares money-saving grocery tips on Instagram, points out a common problem: as prices go up, people often shy away from shopping and end up making poor food choices or eating out more often. USDA data from 2022 shows that Americans spend 11% of their discretionary income on food—the highest since 1991. Coleman emphasizes the need for more tips and tricks to help us shop and cook smartly.

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Why Are Groceries So Expensive Right Now?

The price hikes can be traced back to the COVID-19 pandemic, which caused major disruptions in supply chains and led to worker shortages. Ronald Hill, a professor at American University’s Kogod School of Business, explains that the pandemic essentially “blew up the supply chain.” On top of that, global conflicts, like the wars in Ukraine and the Middle East, have further complicated things, affecting everything from grain supplies to gasoline prices.

How Much Are We Spending on Groceries?

On average, Americans are spending about $550 a month on groceries, but this number can vary depending on your family size. A study by Help Advisor found that families with children spend 41% more on groceries than households without kids. This highlights the extra financial strain that larger families face.

But there’s a bit of good news: the latest Consumer Price Index report from the Bureau of Labor Statistics shows that grocery prices have stabilized since January. In May, Walmart and Target announced plans to roll back prices on everyday goods, including milk, meat, bread, fruits, vegetables, and household essentials like paper towels and diapers. In March, former U.S. Labor Secretary Robert Reich criticized Walmart, accusing the retail giant of price gouging and contributing to inflation.

Setting a Grocery Budget

Setting a reasonable grocery budget is crucial. Prices vary by region—Californians and Nevadans tend to spend more, while Midwestern states report lower costs. A study by Drive Research found that the average grocery trip costs about $174, but this can change based on how many people you’re feeding. For instance, a single person might spend around $131 per trip, while a family of five could see a bill of $262.

Budgeting experts recommend budgeting $125 to $130 weekly per person for groceries. This figure has gone up from the $100, reflecting the increase in prices. Keep in mind that this budget doesn’t include household items like detergent or toilet paper.

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Sticking to Your Budget

One of the best ways to manage your grocery costs is to take stock of what you already have. Theresa Gentile, Academy of Nutrition and Dietetics, suggests following the “first in, first out” rule to minimize waste. This means using older items first before they expire.

Having a game plan when you shop can also help. Coleman’s “6 to 1” method is a great strategy: buy six vegetables, five fruits, four proteins, three starches, two sauces, and one fun item. This helps keep your meals balanced and your spending in check.

Buying seasonal produce can save you a lot of money, as it is usually cheaper and fresher. Focus on ingredients that can be used in multiple meals throughout the week. Avoid processed foods, which are typically more expensive and less versatile.

Best Shopping Days and Frequency

Timing your shopping trips can make a big difference. Sale cycles often start on Wednesdays and end on Tuesdays, so hitting the store in the middle of the cycle can help you avoid crowds and snag good deals. Shopping once a week is usually a good strategy to avoid impulse buying. Frequent trips can lead to unnecessary purchases, whereas a weekly journey helps you stay focused and stick to your list and budget.

Buying in Bulk and Understanding Expiration Dates

Buying in bulk can be a great way to save on certain items. Checking the unit price on labels helps ensure you get the best deal. Despite popular belief, many foods are still safe to eat after expiration dates if they show no spoilage.

Affordable pantry staples like canned goods, lentils, beans, rice, pasta, and potatoes have long shelf lives. Freezing items like herbs, breadcrumbs, and extra fruit can also reduce waste and make meal prep easier.

Navigating SNAP Benefits

For those in need, the Supplemental Nutrition Assistance Program (SNAP) offers valuable support. Eligibility varies by state, but generally, households qualify if their income is at or below 130% of the federal poverty line. SNAP benefits are distributed via an EBT card and can be used to purchase food at most retailers, though they do not cover non-food items.

Despite strict qualification requirements, many households that struggle with food insecurity do not meet the criteria for SNAP. Some states have adjusted income and asset limits to better support those in need.

By using these strategies and tapping into available resources, you can better manage the challenges of rising grocery prices and keep your budget on track.