Spending less on groceries without eating worse

Resources · Money basics · 4 min read Starting out

Key points

• Most people save money on groceries by planning and wasting less, not by eating worse.
• Unit prices tell you which pack is cheaper per gram or per litre.
• Small weekly savings add up over a year.
• Pick two or three changes that suit you. Don’t try to do everything at once.

How to save money on groceries

The ways to save money on groceries that work week after week are pretty unglamorous. Plan your meals before you shop. Compare unit prices. Throw out less food. None of that means eating worse. Often you end up eating better, because a planned dinner tends to replace the last-minute takeaway.

And groceries are one of the few big costs you can actually change from one week to the next. So if you’re trying to free up money for savings or debt, it’s a good place to start.

Plan before you shop

Before you go anywhere, look in the fridge, freezer and pantry. Thirty seconds of checking stops you buying a third jar of something you already have two of.

Then plan a few meals. Not every meal. Four or five planned dinners a week is plenty for a lot of households. It helps to plan around ingredients that overlap, so a bag of carrots or a tray of chicken stretches across several dinners instead of going limp in the crisper.

Write a list. Stick to it. Unplanned items are exactly where the total creeps up.

Oh, and eat before you shop. Sounds obvious. Hungry shopping still costs more.

Read the unit price

Many supermarkets show a unit price on the shelf label, like the price per 100g, per kilogram or per litre. Some countries require it, and elsewhere it’s often voluntary. It’s the fastest way to compare packs of different sizes.

A worked example

Say a 500g pack of rice costs $4.50 and a 1kg pack costs $7.20.

• 500g pack: $4.50 ÷ 5 = $0.90 per 100g
• 1kg pack: $7.20 ÷ 10 = $0.72 per 100g

The bigger pack wins here. But bigger isn’t always cheaper, and specials can flip the result, so check every time. And a bigger pack only saves you money if you use it before it goes off. The same maths works in any currency.

Waste less of what you buy

Food in the bin is money you spent for nothing. Simple as that.

Move older food to the front of the fridge so it gets eaten first. Freeze things before they turn. Bread, cooked rice, ripe bananas, leftovers and lots of vegetables all freeze well. Cook once and eat twice, making a bigger batch and keeping portions for lunch or a busy night.

It also helps to know what your date labels mean. In many countries a “use by” date is about safety, while other date labels are about quality. Food past a quality date is often still fine to eat. Labelling rules differ by country, though, so check your local food safety guidance.

Shopping habits that add up

Try store brands. Many are close in quality to the name brands and cost less. You don’t have to switch everything at once. Swap a few items at a time and keep the ones you like.

Buy produce in season, when it’s often cheaper and tastes better anyway. Don’t turn your nose up at frozen fruit and vegetables either. They last longer and they cut waste.

Cook from basic ingredients more often. Pre-cut, pre-marinated and ready meals cost more per serve, sometimes a lot more.

Shopping less often helps too, since fewer trips usually means fewer impulse buys. Some people also find one store cheaper for staples and another for fresh food, or compare delivery options. Whether that’s worth it depends on your area and how much time you’ve got.

What small savings add up to

Say your household spends $180 a week on groceries and you trim $25 a week through planning and less waste.

• Weekly saving: $25
• Yearly saving: $25 × 52 = $1,300
• New yearly grocery spend: $155 × 52 = $8,060, down from $9,360

That’s $1,300 you could put toward an emergency fund, a yearly bill or a debt. For other places spare money hides, see our guide to finding your extra each month.

Common questions

How can I cut my grocery bill quickly?

For a lot of people, the fastest change comes from shopping with a list, planning a few meals and using up what’s already in the cupboard. Unit prices help too.

Is it cheaper to buy in bulk?

Sometimes. Check the unit price first. Then only buy in bulk if you’ll use it before it spoils and you’ve got room to store it.

How much should I spend on groceries?

That depends on your household size, where you live, your diet and local prices. Track a month of grocery spending and you’ll have a real number to plan from.

Try it

Our budget calculator shows how a lower grocery bill changes what’s left each month. If you’re putting the savings toward debt, you can also find your Freedom Date.

General information only, not financial advice. Your situation is your own.