States Where People Spend the Most & Least on Groceries; Where Does New York Rank?

With grocery prices having risen more than 25% over the past five years, the personal-finance website WalletHub today released its report on the States Where People Spend the Most & Least on Groceries to offer insight into where Americans are having the most trouble affording food.

WalletHub analyzed the prices of 26 common grocery items in each of the 50 states, then added these costs together and compared them to the median household income in order to determine where people are spending the greatest percentage of their income on groceries.

Grocery Spending in New York (1=Most Expensive; 25=Avg.):

• Average Cost of Groceries: $126.59
• Average Cost of Groceries as % of Median Monthly Household Income: 1.87%
• 17^th – Average Price of Ground Beef
• 14^th – Average Price of Eggs
• 17^th – Average Price of Potatoes
• 4^th – Average Price of Bananas
• 14^th – Average Price of Sugar
• 12^th – Average price of Corn Flakes
• 3^rd – Average Price of Soft Drinks
• 9^th – Average Price of Dishwashing Detergent

Expert Commentary
 
What tips do you have to help people avoid overspending on groceries?

“Reducing your spending on groceries starts by generating a specific menu for the week. This includes meals, snacks, etc. When choosing your weekly menu, you can save by selecting recipes or meals that are more affordable. For example, substitution of ingredients is one simple way to save. Or you might skip an expensive ingredient that is not essential to the meal. Probably the best way to save money is to plan around weekly promotions offered by your grocery store. If canned tomatoes are 25% off this week, plan a meal with canned tomatoes. Smart shoppers take advantage of weekly promotions. Another way to reduce expenses is digital/physical coupons. Consumers who take the greatest advantage of in-store discounts and coupons do considerable planning…Finally, we know that when consumer budgets are stressed due to macro events (job uncertainty, gas prices spike) they tend to ‘trade down.’ Instead of eating out at restaurants twice a week, they go out once a week and the other meal is at home. Instead of buying the highest quality brand, that is typically more expensive, they trade down to a less expensive brand with good quality.”
Eric T. Anderson – Professor; Chair in Retailing, Northwestern University
 
“If we are going to consider tips for lowering our grocery bills…we can do all those simple and off-the-cuff things like: make a list and stick to it; buy non-perishables in bulk…; no-impulse buying; and apportion out meals according to actual portion sizes… But when that still doesn't work…we need to as we say in Economics ‘move to a different curve, not move along the same curve.’ So what's that curve?... Think through what we actually need, why we need it, what to avoid, and what to maintain. In short, the slow thinking, what I will call mindfulness in decision-making allows us to leave those purchasing biases behind and focus…on what is needed with an eye to inexpensiveness, less waste, more nutrition, and real needs satisfied.”
Mario J. DiFiore, PhD – Senior Assistant Dean; Chairman, SMF Investment Fund; Finance and Business Economics Faculty, Fordham University

How do you think the current social and economic environment is influencing household spending on groceries decisions?

“While consumers tend to trade down, they also are reluctant to cut corners everywhere. They will often carve out affordable items and treat themselves – even when times are tough. Cosmetics and personal care are often given as examples.”
Eric T. Anderson – Professor; Chair in Retailing, Northwestern University

6 Tips for Saving on Your Groceries

1. Budget carefully: Creating a budget will help you determine how much money you’re able to spend on groceries, which can keep you from splurging and making impulse purchases that would put you over the limit.
    
2. Use the right credit card: Getting one of the best credit cards for groceries can save you anywhere from 1.5% to 6% at checkout. That adds up quickly, and can help to offset how much prices have inflated in recent years.
    
3. Take advantage of discounts: In addition to regular sales, many grocery stores offer coupons on items. You just need to be willing to find them and redeem them at checkout. Some stores also offer discounts that are exclusive to members of their free loyalty programs, so you should make sure to join these programs.
    
4. Buy store-brand items: Many store-brand products are virtually identical to name-brand foods in taste but cost significantly less. You can save a ton of money by replacing most goods with generic products.
    
5. Look for clearance items: Some stores will put items that are close to their sell-by date on steep discount to avoid having to throw them away. As long as you use the food relatively quickly, it’ll still be perfectly good.
    
6. Buy in bulk: Warehouse stores offer groceries in bulk at far lower prices than it would cost to buy the same number of items individually. Getting a membership to one of these stores is especially worthwhile for people with big families.