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pcooley
11-3-11, 11:44pm
A recent Times magazine article -- I don't know if it's online, I was reading it in the library -- stated that these days, the average American spends 9% of his or her income on food. I ran the numbers on our software for the past quarter. Groceries weighed in as our biggest expense at 33% and eating out was 5%. Granted, that's just percentage of our expenses and does not take into account what we put into savings and retirement and so on, but still, nearly 40% of what we spend is spent on food. Who are these people who spend only 9%? I count myself as fairly frugal, and we eat largely vegetarian, homemade meals. As anyone who has followed my sparse posting might remember, I agonize over what I spend on food: organic or no? from the farmer's market or from Albertsons? Do I buy a milk goat? Do I shop at the local coop and bring my own bags for bulk items or do I go to Vitamin Cottage where it's cheaper, but the bulk items are prepackaged? I put a fair amount of thought into my food purchasing. I can't imagine the average spendthrift only paying 9%. What is the average amount for these boards for a family of four, and how does this 9% figure come about?

puglogic
11-3-11, 11:57pm
Depends on how you run the numbers, pcooley, whether it's gross or net, etc. Our food expenditures every month (for a family of 2) are roughly:
7.5% of our gross income, or
11.2% of our net income, or
18.7% of our expenses.

We eat mostly organic stuff, and local when we can get it. We buy bulk from a local company that sells bulk flours, grains, legumes, nuts, dried fruit.....shop sales....loss leaders.....cook from scratch a ton.......and eat very, very well. If I have to spend my money on something, I'd rather it be amazing, healthy meals. I'll cut corners in almost any other area to preserve our food budget. It also reduces our going-out-to-eat budget.

Zoebird
11-4-11, 12:46am
yes, we are far more than 9%

RosieTR
11-4-11, 1:20am
Ours is around 10-12% of expenditures, but we are a family of 2. That figure includes all alcohol, beer brewing supplies (DH brews), eating out, organic/local, regular grocery store, etc. but does not include most food spent on trips because I categorize trips separately. It also does not include pet food, though does include pet treats. I would imagine that figure would be higher if we had kids, especially kids older than about 5, when they really start to eat a lot and have major preferences. On a side note, someone has written a book about what to cook from scratch vs buy called Bake the Bread, Buy the Butter. You might see if you can check it out or even possibly buy it if it would be a good reference. I believe she was pretty anti-milk goats in terms of cost/benefit analysis. Many people think growing or making their own is cheaper, when in fact it may not be. OTOH, some stuff is just so much better from home (home-baked bread, home grown tomatoes) that even if it's not cheaper it may be well worth it. She does an analysis and also has recipes, I believe. I heard an interview but haven't had a chance to see the book.

lhamo
11-4-11, 6:36am
We spend what I feel is a fair amount of our income/net spending on food, but in percentage terms it isn't that high. Largely because we have very high proportional spending in our two other main outgo categories -- "vacation" (which also includes visits to both sides of our family, so not strictly "vacation" but also relationships, etc), which is running at 23% of our spending so far this year, and housing, which is currently at around 21% of spending. Food comes in next at about 15.5% of spending this year -- that's up significantly from last year due to different food choices (more organic, more local, higher quality stuff in general, huge reduction in carbs and increase in protein sources) as well as significant local inflation. That also includes us having paid ahead on the kids school lunches for the entire 2011-12 school year, which was a substantial increase in outflow in 2011. In terms of breakdown within that category, we have spent about 8.4% of our net spending so far this year on food eaten at home, 3.82% on the kids school lunches, and 3.31% on other food eaten outside the home. That is up from 5.56%, 1.07% and 2.01% in the corresponding categories in 2010. Food prices really have been going up dramatically, and imports (which we eat a fair amount of, especially with me on a low carb diet and craving cheese) have been hit doubly hard due to the depreciation of the dollar.

If you changed those figures to reflect percentages of income rather than spending, the figures would drop a huge amount because we save as much as we legally can in our retirement accounts, contribute to the kids college funds, and also manage to save a fair bit on top of that. We live on a little bit less than half of our income, or basically on one of our decent "mid-level manager in solid non-profit organizations" salaries. Our situation is unique, as we live in Beijing and buy most of our food here, but a study someone did comparing grocery prices in Boston and another city in China that has a lower cost of living than Beijing showed that an average "grocery basket" purchasing the same items would be more expensive in CHina than in the US. Now, you can quibble with some of those choices, and things like vegtables and some staples are definitely cheaper here, but things like meat, dairy and eggs are comparable if not more expensive. So I think our spending would probably close to these percentages if we were in the US, too. We are a family of four with two kids, ages 10 (boy, huge eater) and 6 (girl, picky eater).

Obviously it makes a huge difference if you are a food lover or more conscious shopper with a comparatively low income, especially in an expensive place. I think it is really comparing apples with oranges -- or in your case more like comparing apples with dragonfruit or papaya. Comparing yourself with the "average American" just isn't appropriate, because you don't have an average American income, nor are you living the average American lifestyle. Is it helpful to make this comparison? Are you going to stop eating the food you love and know is the best, healthiest choice for you and your family just to meet some "average" target? Your income is lower than many here and your choices -- which are important to you and matching your values -- are more expensive. We've talked about your budget before and I think the general consensus is that the real issue is not so much your spending but rather your low income. I know you are working to address that, and the homeschooling factor complicates it (in a good way -- this investment of time and energy in your kids will certainly pay off in the long run), but I thought it worth mentioning. Don't try to be average, Paul. Try to figure out how you can turn your unique skillset and worldview into a job, projects, or other things that can boost your income.

lhamo

razz
11-4-11, 8:00am
Paul, not to ciriticize in any way but my choices in expenditures on food are quite different than yours might be. I can buy eggs at a local farm for $3 per 21/2 doz but in a store they are $2.55/doz. I rarely buy steak or cold meats or organic meats but local butcher's ground pork, chicken parts like breast or legs. Almost no prepared foods but supplies are stockpiled when on sale. Am I being careful enough in my choices?

There is a line in the sand for me on simple diet and a simple budget of apx $300-350 for two including dog food and simple house cleaning materials. When we have guests for dinner where I feel I have to think differently, I really struggle in choosing items that conflict with the line in the sand. Afterwards, I think about it and realize that I felt that I had to change my diet for others and it was not really that important to the other party after all so am working through this issue. Good thread!

Marianne
11-4-11, 8:15am
We used to be at $250 or so a month for the two of us, with dog/cat/chicken expense on top of that. No eating out, no convenience foods, etc. - I'm pretty frugal and we ate well. Now DS#1 is here for an extended visit. He's vegetarian, but prefers organic. The monthly budget is out the window while he's here.

Since our income is a lot lower than it used to be, plus our son, we're closer to the 13% each month...maybe more.

pinkytoe
11-4-11, 8:56am
Just did the math and our food expense is around 12% of gross income. I did not add in pet food. We buy organic for the dirty dozen produce items (when in season) and conventional for the rest unless on sale. Lots of bulk - oatmeal, beans, rice etc. We do have lots of shopping choices though with chain, regional and food co-ops close by. Also many farmer's markets. I spend about three hours a week procuring food including travel time.

goldensmom
11-4-11, 11:38am
For 2 of us, we spend 7% of our monthly budgeted household expense money on food (budgeted household expense money does not include savings or farm income/expenses). It is about 3.7% of our gross monthly income from employment and pension, again minus farm income. I've tracked our expenses since 1997 and food in many cases has risen 300%.

ApatheticNoMore
11-4-11, 1:01pm
About 10% of take home after taxes. Are taxes high? Yes taxes are high :). I buy organic, I basically buy whatever I want for food (I don't however eat out that often). I earn what is a decent income in California and what in most parts of the country would be considered a very good income. And food does NOT cost more here than elsewhere (rent, oh well yes, rent is another matter ... rent and other stuff can certainly push what I spend on necessities to 50% of take home for sure). So yea high income basically explains why a large PERCENTAGE is not spent on food, it's just math ;)

My actual philosophy on food is I try to eat healthy and I don't think I have the willpower for both extreme food penny pinching and trying hard to avoid unhealthy food (which of course is EVERYWHERE, often free unhealthy food at work, etc., it's a mine field). So bring on the organic rasberries! (only in season though. I use this example because even in season those things are pricey).

Spartana
11-4-11, 3:48pm
You also have to consider that the people cited in the article who only spend 9% of their income on food, might have a MUCH greater income then you do. The may spend the exact amount you do in dollars but because their incomes are so much higher then yours their percentage spent on food will be smaller. I am at the other end of the scale. I have a relatively small income so the amount percentage-wise I spend on food is greater then most peoples - even though I might actually spend alot LESS in terms of dollars spent each month. If your income is $500/month and you spend $250 of that on food then your percent is 50% but you may still spend alot less then other people do on food.

ctg492
11-4-11, 4:03pm
Oh no I am afraid to actually figure this out, I guess I should. We have a grown son living with us now while looking for work. Oh boy the grocery bill went out the window :( It was the most noticiable increase in the house.

Stella
11-4-11, 5:09pm
You also have to consider that the people cited in the article who only spend 9% of their income on food, might have a MUCH greater income then you do.

That's what I was thinking.

I don't know the percentage but groceries cost us about as much as our fixed monthly expenses combined. Of course, that's because our fixed expenses are insanely low. I feed a lot of people too. Five and a baby every night, but at least half the week it's between 6-10. I spend about $600 a month.

rosarugosa
11-4-11, 5:43pm
We had been spending about $500/mo for two people and two cats. This includes shampoo, paper prods, cleaning prods, etc. By switching to a less expensive grocery store, I think we'll be able to cut this by almost $100 per month.

bae
11-4-11, 5:45pm
We look to be running $175-$200/week, for two adults and one hungry teenager.

Zoebird
11-4-11, 11:40pm
right now, we spend equal amounts on housing and food. crazy, right? then a smaller percentage on power and transportation. transportation is about double power.

But, by increasing our transportation costs (in the short term) we have decreased our food costs. I know, confusing. LOL but, our budget is small.

Also, our income is low, so YEAH, the percentage is much higher.

a friend of mine earns $105k per year, and uses costco and spends about $75 a week on food for two people (no pets). It includes a LOT of treats and junk foods. So, $300 per month, right? So what percentage is that? I don't have a calculator on this computer. LOL

RosieTR
11-5-11, 12:32am
3.7%, Zoebird.

Paul, the bigger question is, what do you consider "high" and "low" and "OK"? For 2 people, between $500-600/mo is pretty high in my opinion, but I'm a foodie and DH isn't about to give up his craft beer. If we were desperate, of course we would make some changes. The point is not to constantly feel like crap about your budget unless you actually aren't saving anything and getting in a hole (aka desperation). The point is to save some money, spend some money on your values and of course spend some money on necessities.

Zoebird
11-5-11, 12:46am
thanks rosie. it would have taken me a long time to do that in my head. if i'd had paper and a pen around, slightly faster. :D

In the US, we were easily $250/wk for the two of us -- eating mostly local, 100% organic (veg, meat, dairy, eggs), and this included things like fermented cod liver oil. Here in NZ, it's the three of us for $315 currently, and possibly getting that down to $275 or so. This is eating about 90% or more local, about 50% or less organic, and paleo-styled.

I suppose if you did the exchange rate, it comes out about the same, btu the reality is that once you are in an economy, a dollar is a dollar. A NZD is a NZD. I earn NZD, so i spend NZD, kwim?

anyway, yeah. food here is also very expensive anyway, and there's a 15% tax on it. :D So, that number is tax inclusive.

ljevtich
11-5-11, 2:00am
I would especially suggest that you go to the bottom of the article and click on the link stating: Click here to see how Americans are spending their money.

The Forbes Article is based on income levels (http://www.forbes.com/2006/07/19/spending-income-level_cx_lh_de_0719spending.html) and is very revealing.

For our family of two we are about middle, but I was looking at the averages so far, and it is much higher for food than what they are saying.

It is interesting though, this was written 5 years ago. So take it with a grain of salt.

The more Americans make, the less they spend on groceries. The bottom fifth of earners spend a whopping 12% of their yearly budget on food at home, compared to 9% for the middle fifth, and 6% for the top fifth.

Kestra
11-5-11, 8:01am
Appears to depend also on whether they mean food - like groceries, or ALL food. How much you eat out would really change that percentage. We spend about 20% of our spent money on food - over 90% is groceries, with the remainder eating out. But that's only 11% of our net employment/misc income. I love food though - fresh produce, organic, local food. I can afford it so I'm not going to try to cut costs in this area. We also spend about half our spending on housing/utilities. Oh no! But we like warm comfortable housing and are willing to pay for it. On the other hand we're not buying fancy clothes or cars or vacations. The less you spend on other things, the higher the percentage is going to be for food, housing, etc. It doesn't mean you're going broke.

DonkaDoo
11-5-11, 12:16pm
We do about 80% of our shopping at Costco and Trader Joe's and spend about $60 a week for 2 people a dog and a cat. We prolly spend another 40/wk on wine and eating out.

So let's see here $400/mo on food. I would say we spend about 16% of our take home income (after 401k and health insurance) on food. We only spend about 8% of our income on transportation though.

Bastelmutti
11-6-11, 8:30am
Ours is approximately 15% of gross, 25% of net - groceries and eating out. Family of four, breakfast, lunch and dinner (no school lunch, DH and I only rarely eat lunch out). Fairly high cost-of-living area. Organic when we can, non-organic when we can't. Meat maybe 2-3 times per week. I am trying to separate out cleaning products and cat (2) supplies, but haven't done that 100% yet, so my estimate may include some of those.

I am looking to reduce our total by decreasing eating out, although I don't feel we're excessive there, and trying to cut convenience products when I have more time to prepare homemade snacks. I don't buy prepared meals or many frozen foods, but I do buy "lunch snacks" and crackers and that sort of thing.

daisy
11-6-11, 10:14am
We're spending about 12% of net for two adults for all food and alcohol, but no pet or household expenses. This year we purchased a quarter beef and a lamb from a local charity that raises organic, pasture-fed animals, as well as two pigs my sister raised, so those are included in that. Not included are meals out and free-range eggs that we get from my sister, as those are paid for in cash from our "allowances" every week.

We could probably cut back in this category, but since we both like to cook (and especially to eat!), I'm not worrying about it too much while all our other goals are being met.

redfox
11-6-11, 2:17pm
We budget $170 a week for food & transportation for two (including 2 cars), and that includes pet food & alcohol as well. Often we spend that, often we're under. We buy exclusively organic & mostly local, as well as very high quality coffee (decidedly NOT local!). I am opposed to buying cheap food at big box stores, for tw reasons. Te nutritional density & Quaker of that so-called food is poor, and I much prefer to put my $$ into the hands of a member-owned coop that has priorities aligned with mine. We spend little to no money in other areas to allow for a luxurious food budget.

Rogar
11-6-11, 5:47pm
I probably spend about $75/week for one. I'm mostly vegetarian and about half of the produce I buy is organic. I hardly ever eat out. Groceries are probably the least of my budget concerns as I throw very little food out and don't buy much junk food. I could probably get by on less, but figure whatever it costs is money well spent.

Our Costco actually a few decent brands of healthy foods, like organic granolas, organic coffees and meatless burgers, but I don't have much storage room for bulk groceries.

Gregg
12-5-11, 5:29pm
We entertain quite a bit and like to try dishes with ingredients that don't seem to go on sale very often so our food budget is a little out of whack compared to most folks. I do stock up on staples when there is a good sale, but overall we love to cook and entertain so consider food part of our entertainment budget as well. That said, we run close to 35% of our monthly expenses through the grocery store (and even higher if you add in the wine!). It helps if you don't have a mortgage or car payments to pay. The % of expenses and the total $$$ were both a lot lower when we were younger and had 3 kids, 2 dogs, a mortgage, etc. all going at once.

Tiam
12-5-11, 10:17pm
My bank account has a little tracker. It says I spend 11.61% on food. However, it also charts a "General Merchandise" at 25.4% So, I'm not sure. I am terrible at tracking.

Tiam
12-5-11, 10:22pm
You also have to consider that the people cited in the article who only spend 9% of their income on food, might have a MUCH greater income then you do. The may spend the exact amount you do in dollars but because their incomes are so much higher then yours their percentage spent on food will be smaller. I am at the other end of the scale. I have a relatively small income so the amount percentage-wise I spend on food is greater then most peoples - even though I might actually spend alot LESS in terms of dollars spent each month. If your income is $500/month and you spend $250 of that on food then your percent is 50% but you may still spend alot less then other people do on food.


Excellent point.

MaryHu
12-19-11, 9:04pm
Usually around 6 to 8 percent (of gross). I garden and can and freeze the surplus, bake most of our bread, shop at the Farmer's Market during summer and Costco for certain things I have determined are less expensive there and don't include any non food items in my grocery category (such as pet food, paper goods, light bulbs, soap and cleaning products, toiletries and any of the million other things sold in grocery stores besides actual groceries) We don't eat a lot of meat, just use it for seasoning. Our income's just over 35,000 this year (gross). Also Dining out is not included in this amount. We usually eat out once a week, lunch because it's cheaper, and spend anywhere from $6 (at the $1.25 a slice pizza place) to $10 (at the Chinese buffet or Mongolian BBQ [sharing a bowl] or pita place using a coupon) that price is for both of us. Dining out was about 3% of our gross income this year.