Climbing grocery prices have caused millions of Americans to reconsider purchases. Unfortunately, according to the US Department of Labor, food inflation is expected to continue.  A variety of factors have contributed to the increase in grocery bills:

• Fluctuating fuel prices have made it more expensive for food producers to grow, harvest, process, package and transport food to market
• Poor weather in grain-producing countries has boosted the price for corn and soybeans
• With increasing wealth, countries such as China and India are demanding more of the world’s food which is straining supply
• The increasing focus on using corn for ethanol (a fossil fuel alternative) has caused farmers to shift land use from producing food to producing material for biofuels; since corn is a main ingredient in livestock and poultry feed, diminished production of corn for food has led to an increase in the price of milk, chicken and meat

If you are like many Americans and you’re concerned about rises in your monthly grocery bill, there are steps you can take to be more aware of what you’re spending and to make lower-cost, choices.  Those choices can also preserve your family’s ability to continue saving money and investing that savings for longer-term needs and goals. 

To start, look over receipts from the past month or two – or begin compiling grocery store receipts this month – and add up how much you are currently spending on groceries and eating out.  See how that compares with the amount in your family budget for monthly spending on food.  If you’re spending more than you have budgeted, and if you’re pulling from other areas of your family’s budget to offset rising food costs, consider some of the following suggestions:

Shopping Strategies

• Plan a weeks’ worth of meals around what’s on sale at your closest store each week.
• Buy meat (chicken, beef, pork, etc.) when it goes on sale and freeze extra portions for future meals.
• Shop at more than one grocery store to take advantage of lower prices and sales, but factor in how much it will cost you in terms of time, money and gas when you shop at multiple stores.
• Eat seasonally and locally.  Foods that are in season are more plentiful and, therefore, typically less expensive; locally-grown items will also require less energy input for shipping/transportation and are likely to be less expensive as well.  Learn more about the benefits of eating locally on websites like SlowFoodUsa.org or 100milediet.org.
• Shop at local farmers’ markets where you can get fresh food and support your local farmers.  You can find a farmers’ market near you through Localharvest.org. 
• Buy fewer frozen and other prepared meals, which are typically more expensive than making meals on your own.
• Use internet sites like Grocerygame.com to compare prices at local stores.  Sites like these will also help you know when it makes the most use to use manufacturer’s and store coupons to save even more money at the checkout counter.
• Don’t go shopping when you’re hungry.  You’re more likely to buy more food, and less nutritious food, when you’re hungry. 
• Leave the kids at home with a spouse, partner or drop them off at a friend’s house to reduce the time and impulse buying money you’d likely end up spending with little ones along.
• Shop at value or discount stores, especially for non-perishable items like paper products.
• Switch to buying generic or store-brand rather than pricier name-brand items.
• Consider the savings you might be able to realize by purchasing a year-long membership at a warehouse club (Costco, BJ’s, Sam’s Club) and buying in bulk.  However be sure to check the unit price on items and consider how that compares to your grocery store; without keeping a close eye on the bottom line price you can end up paying more for more food than you need.
• Learn more about ways to “go green” even in the midst of a busy lifestyle and tight finances.

Meal Preparation

• Cut out unnecessary, expensive ingredients in meals or substituting less-expensive replacement ingredients.
• Use seasonal fruits and vegetables.  Buying produce when it’s in season is a fresher, cheaper way of eating.  Not sure what’s in season?  Check out your local library for seasonal cookbooks.
• Cook in bulk to save time and money.  By doubling or even tripling a recipe and freezing extra portions you will have meals prepared in advance for another time. 
• Use leftovers instead of throwing extra food away.
• Choose less expensive, more filling vegetarian options such as rice, pasta and beans.

Creating a Community

• Look into purchasing fresh and/or bulk food from a local co-op with friends and neighbors.
• Start a “supper club” with neighbors or friends where you each prepare a meal for the other group members one night a week or month.
• Start a Brown Bag Club where you and 4 co-workers divide up the week and each bring a different bag lunch or prepared meal that the group can share.
• Start a coupon swap club where you regularly share coupons and tips on store sales or healthy, inexpensive recipes.

Starting at Home

• Pack lunches for work and school instead of eating out or buying hot meals.  You have more control over being able to choose good, nutritious foods, use your leftovers and lower your food bills.
• Clip coupons.  You can find coupons in your newspaper circulars, in “value-pack” mailing that come to the house and online coupon sites such as Coupons.com.  You might be surprised to realize how much you can save by using coupons, particularly at stores that double and triple the coupon savings, or when you combine coupons with sales.
• Create a rotation of simple, affordable dishes such as grilled lean meats, pasta, tacos and chili to simplify and narrow your shopping list.
• Purchase a deep freeze and stock up on good deals on meats and frozen items.
• Plant a garden.  It can be a great way to add some fresh vegetables to your diet and a fun project to do particularly with young kids.  Growing your own herbs for recipes and seasoning can save you quite a bit of money at the grocery store.  Check your local library for tips on starting a small home garden or talk with someone at a local nursery or home garden center. 
• Cut back on eating out.  There are numerous ways to do this – go out to a restaurant only for special occasions, choose lower-cost restaurants, use coupons, or find restaurants offering special lower-price menus on certain nights of the week or times of day. 
• Make your own snacks instead of buying more expensive pre-packaged snack bags.  Raw or lightly steamed vegetables with a small container of dressing or dip are a great, healthy alternative to chips or sweets. 
• Send in rebate forms to get refunds on items you use regularly.

While you’re working to reduce your grocery bill consider other, related ways, to trim costs.  For example, investing some savings, an unexpected bonus or tax refund in more energy-efficient kitchen appliances can add up to realized savings over the long-run.  Call your local utility company (gas or electric) and ask for a free energy audit to identify other ways to lower your home energy bill and learn more tips on how to beat the high cost of energy at the pump. 

Keep track of your food spending quickly and easily by adding up receipts, credit card statement items and debit card purchases at the end of each month and compare that sum to the amount you have budgeted.  By implementing just a few changes consistently you will be more aware of where your money is going and you should begin to notice a decrease in spending.  Be mindful that as you trim money from your food bill it puts you in a position to be able to accumulate that savings.  Saving even just $50 or $100 a month means that at the end of a year you could have between $600 and $1,200 to invest for a longer-term goal.