Food bill savings, why?

November 10, 5:07 PMFrugal Living ExaminerElise Cooke

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Chow down!
Photo by Randy Son of Robert

How a family acquires and consumes food can make a huge difference to household finances.  It's just too easy to inadvertently spend more than is necessary on a particular meal, which is no big deal. However, the sheer repetition of overspending at least three times a day, per person, day in and day out all year, can damage the family purse to the tune of thousands every year.

The good news is that most food spending mistakes don't have long-lasting commitments.  The penitent man can change his eating habits and start saving money right away.  This is in sharp contrast to a lot of other costly choices families make, like taking on a hefty mortgage or buying a car on credit; financial obligations that are a lot harder to unwind.

In short, a family looking hard for ways to save money should check their food-buying habits twice and then three times because

• Comestibles are not durable goods, so overspending on them will never be amortized over a long period of time.
• Meals are very repetitive; overspending thus has a severe multiplier effect.
• There's no way to just do without this expense.
• Positive changes can take effect almost immediately.

It's therefore no mystery why nearly every book on frugal living includes at least one chapter, and sometimes half the book, just on techniques for eating more cheaply.

Yet, Americans continue to overspend on food at an appalling rate.  Studies suggest that upwards of one quarter of our food gets wasted outright; half of that is tossed out at home, the rest comes from restaurants and grocery stores.  According to a food loss researcher at the University of Arizona, the average family of four chucks some $600 worth of food every year.  Certainly, purchasing vittles that are never consumed is a complete waste of money.

Even "family style" restaurants easily charge ten times the original cost of the meal for ambience and convenience.  According to the National Restaurant Association, eateries should pull down $566 billion in sales this year.  That's more than the consumer debt held by the top five credit card issuers in the United States.  According to the USDA's Food CPI and Expenditures, the average American spent $3832 to feed himself last year, of which $1859, almost half(!)  was on meals out.

Clearly, being smarter about food purchases can make a huge difference to a family's financial goals, which are seldom the desire to eat out more.