How much should your average grocery bill be?

Whilst your grocery bill will depend on how many people you're feeding and where you live, the average Aussie household spends $254 a week on groceries. Eat up!

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Not sure if your grocery bill is a bit higher than it should be? According to Budget Direct, the average Australian household's weekly grocery spend comes in at $254! If you've got kids between the ages of 5-14, that shop will cost you $336 a week. And if you're living in New South Wales, you'll spend more than any other state.

Think your grocery bill is a bit too high? This guide will help you understand what your bill should be and how to reduce your grocery expenses (without needing to give up your wine!).

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What portion of your household budget should be allocated to groceries?

In general, 50–80% of your monthly income should be spent on necessities, including groceries. Here are some factors to consider when deciding exactly how much of this portion should be allocated to grocery bills:

  • Household income size. Groceries could take up a large portion of a smaller household income and a small portion of a higher household income. If you have limited funds, it's important to set aside a higher percentage of your salary to essential purchases like groceries.
  • Household size. Larger households typically have more mouths to feed, which means higher average grocery bills. Naturally you should set aside a bigger portion of your income for groceries in that case.
  • Location and cost of living. More expensive cities have costlier goods and services. As a result, you should factor this higher grocery expenditure into your household budget template.

3 tips to reduce your average grocery bill

Once you've used the factors above to create a monthly grocery budget, you should seek out tips and tricks to spend within that limit. Here are three popular methods to save more on your average grocery bills:

1. Track your spending

Budgeting works best when you follow a strict household budgeting template and track your spending. The easiest way to do this is by using mobile budgeting apps, such as the Finder app. This smart money management tool allows you to get an overview of your finances in a few quick clicks. Track your spending, watch your credit and get notified of savings deals for free. Such financial tools definitely beat the hassle of manually tracking receipts and noting down grocery bills.

2. Understand your spending habits

Do you stick to your shopping list? Do you even make a shopping list? What brands do you find yourself reaching for? Understanding your spending habits and eliminating expensive practices could drastically reduce your average grocery bills.

If you find that you often deviate from your shopping list, then tackle that issue head on by creating a list that better meets your needs, or go shopping with a friend who can keep you on task. If you realise that you gravitate towards high-end food brands, consider how you may switch to a cheaper alternative. In many cases, expensive and branded grocery goods have cheaper alternatives of comparable quality. Do your research and keep your eyes peeled.

3. Plan in advance

Planning is a great money-saving tool, from creating a household budget template to a weekly meal plan. Set aside just 30 minutes at the end of each week to plan your upcoming meals. This helps reduce the likelihood of you ordering in or dining out. Additionally, this will help you create a cheaper, accurate shopping list. Instead of buying an assortment of meats and veggies that end up camping out in your fridge all week, you'll know exactly what to buy and when to cook them. As a result, less food gets wasted and your money is better spent.

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