Average Household Cost of Food

Food cost as a percentage of the average U.S. household budget has decreased dramatically over time. Back in 1900, families spent about 40% of their income on food. By 1950, it was just under 30%. And in 2013, the average American household spent about 10% of its total budget on food, according to data from the U.S. Bureau of Labor Statistics.

The average amount of money spent on food per U.S. household (assuming the average 2.5 people in each household) was $6,602 in 2013. That’s roughly $2,641 annually per person. The average cost of food per month for the typical American household is about $550. Below is the breakdown of the budget for food prepared or consumed at home, as well as the total overall food budget.

Average food costs

Nonalcoholic beverages include coffee and tea, colas and other carbonated drinks, bottled water, fruit drinks and sports drinks, and the typical household spends nearly 6% of their food budget on them.

Fresh fruits and other canned and prepared foods make up the next two largest categories in the typical American household grocery list.

Average U.S. household budget for food at home of $3,935

The other items that make up large proportions of the typical U.S. food budget would be familiar to any American:

Average U.S. household food budget of $6,602

On average, we spend 60% of our food budgets on meals and snacks we eat at home, and we spend 40% of our food costs on eating out.

Who gets cheap food and who spends a lot?

Wealthier families also spend a greater proportion of their income — about 45% — on food away from home, which includes restaurant meals.

Households headed by both the very youngest and oldest Americans, who tend to have lower income levels, also spend less on food compared to those between ages 25 and 64. Also, families in the Midwest spend less on food than those in other parts of the U.S.

Yet households earning less than $500 per month still spend nearly $300 a month on food. While the price of food is costly, some might be able to pare that expenditure back by learning the cooking and eating habits of families who spend less to feed themselves.

By looking at consumer expenditures, we can see that the families who spend the least on food, prepare more meals at home. They spend proportionally more on grocery items like rice, eggs, dairy products, fresh fruits, vegetables, fats and oils, sugar and condiments.. Overall, they spent between 65% and 72% of their food budgets on food consumed at home, which is significantly higher than higher-income households.

When they do eat out with the remainder of their food budget, they spend far less at full-service restaurants and more often buy food from mobile vendors and in cafeterias.

Cheap eats: How to save on food

Whatever your food budget, you can probably borrow some tactics from thrifty households to cut your costs even further. Try to work these methods into your family’s food plan.

1. Cook at home

It does take more time, but cooking and eating at home can save you loads of money in the long run. Consider that the actual cost of food for a restaurant meal is less than a third of what you pay for it. The rest of the money you spend at a restaurant goes to other costs like labor and overhead. If you cook at home, you only pay the food cost and pocket the rest.

2. Stock up on staples

Already buying lots of beans, you say? Stop hauling home heavy cans, and buy dried ones that you soak yourself. Load up on grains, too, like rice, cornmeal and oatmeal. Eggs, peanut butter and bread can also go a long way toward feeding a hungry family on a tight budget.

3. Swap pricey proteins and goods for cheaper, but still healthy ones

Ground beef costs less per pound than steak. Dark meat chicken tends to be cheaper than white meat. Canned fish can be a good, cheap and healthy alternative to buying fresh.

If you’re trying to chip away at your food budget, and you’re spending a ton on soda or juices like the average American family, we have two words for you: tap water. If the water tastes terrible where you live, try squeezing in a lemon or boiling it into tea. If you can't bare to part with your morning coffee, at least don't buy it every day at chains like Starbucks or Dunkin’ Donuts. While convenient, that can quickly add up to $5,000 to $7,000 over a decade. Instead, consider investing in a Keurig, a Nespresso or even a regular drip coffee maker to at least chip away at the dollar side of your coffee habit.

Food and drinks are essential for survival, but a few small tweaks can help you spend less on them. That way, you and your family can have more money to put toward other important parts of your lives.