Groceries for two on less than $200 a month. How to save money on groceries.

Updated February 2025

One of the biggest expenses in the household is usually the food budget, which increases as the family size increases. Shopping for groceries can be an extreme chore that eats up a significant portion of your household income. 

According to the U.S. Department of Agriculture, a moderate-cost grocery budget for a family of four averages around $1,048 per month, excluding dining out. That’s approximately $12,576 per year on groceries alone.  

If you can cut back on the grocery bill that would free up a lot of money for other things. In 2013, I managed to keep my grocery bill under $200 a month (for a two person household). Now in 2025, I still use the tips and methods to lower my spending on groceries. 

Below are a few tips on how to save money on groceries and lower your grocery costs.

1) Join store loyalty or club programs:

One of the tools that nets the largest savings on groceries is opting into the store’s loyalty or club program. You can load coupons directly on your card and take advantage of special deals. I save 30-40% off my groceries using coupons through the club program at my grocery store. 

Also, find coupons from other sources for items that you need, such as online sites. Don’t fall into the trap of cutting coupons for items that you don’t need. If you weren’t planning on buying the item then it doesn’t matter how great the deal is, you’ll still be spending money that you originally weren’t going to spend.

If you want to learn how I decreased my food budget without cutting coupons then check out this article: How I Decreased My Food Budget by 79%.

2) Check store weekly circulars:

Look through store circulars to see what is going to be on sale at which stores. I know people who must stop at three different stores in order to get everything they need.

If you normally shop at multiple stores, plan your trip so that you can get everything in one outing to maximize savings and minimize time spent.

For example, say you are going to store A specifically for fruit, but also need to pick up fish. If you know the price for fish is cheaper at store B then you can wait until you get to store B to purchase the fish.

3) Compare prices and bargain shop:

Use bargain shopping skills to compare prices and brands to make sure you’re getting the most bang for your buck. Use price comparison apps or websites to ensure you’re getting the best deal on groceries. 

Do comparison shopping ahead of time so you don’t waste time in the store, linger around any tempting merchandise, stray off your list, or get frustrated and just pick up the closest option.

Some stores also have price-matching policies, which can save you money without needing to visit multiple locations.

4) Try generic brands:

Test out store brands or generic versions of your favorite products. There are some items where the generic brand just doesn’t cut it. The taste is off or the consistency is weird, and it’s not worth it because you don’t like eating it. 

Often, the store brand products are just as good as name brands and come at a fraction of the price. While there may be a few exceptions where a name brand is preferable, most household staples like rice, pasta, and canned goods have great generic alternatives.

Try out the generic versions of different items you buy and see what works for you. You may be pleasantly surprised. 

5) Eat more fiber:

Eat more fiber rich foods like fruits, vegetables, and whole grains. Eating healthier will keep you full longer so that you end up eating less food throughout the day. This will result in you buying less food as it lasts longer. 

I’m not so great at eating my vegetables so I’ve been making fruit veggie smoothies. I know what you’re thinking, but they really are delicious. Who knew eating green could help you save green.

Implement these strategies and think of more to see how much money you can save on groceries. What do you normally do to cut costs on your grocery bill?