Six California Cities Amongst the Most Affordable for Groceries

“In the cities where people spend the most money on groceries, residents often have low incomes on top of seeing high sticker prices on common grocery items. Shoppers should take advantage of sales and coupons, buy generic items and buy in bulk if possible in order to save money. It’s also a good idea to use a credit card that gives a good amount of rewards on grocery purchases and pay it off in full each month.”
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“People in Detroit spend the most on groceries, which have an average cost of nearly 3.8% of the median household income, the highest percentage in the country. For comparison, Fremont, CA, residents spend an average of less than 1% of their income on groceries, the lowest percentage.”

– Chip Lupo, WalletHub Analyst

Expert Commentary

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

“To avoid overspending on groceries, it’s essential to become a strategic and intentional shopper. The single most effective tactic is to always shop with a plan. Before you leave the house, take a moment to look at what you already have in your pantry and fridge, and then build a meal plan for the upcoming week. From that plan, create a precise shopping list and commit to only buying what’s on it. This simple but powerful method serves as your first line of defense against impulse buys. Additionally, it’s always a good idea to shop after you’ve eaten; a full stomach makes you far less susceptible to the allure of expensive snacks and convenience foods. Finally, become a savvy consumer within the store itself. Pay close attention to unit prices to determine which size or brand offers the most value. Don’t shy away from store-brand or generic products; they are often manufactured by the same companies as national brands but at a significantly lower cost. Embracing these habits can drastically reduce your grocery bill and help you feel more in control of your spending. A deliberate approach to planning and shopping is the most effective way to curb overspending and secure savings.”
Andrew Burnstine, Ph.D – Associate Professor, Lynn University

“There are many advantages to buying groceries at Wholesale Clubs like Costco. These providers receive significant discounts from suppliers, enabling them to maintain lower pricing compared to others in the grocery space. For example, Costco works hard to maintain a standard 15% markup with suppliers over their costs, so you know that you are not overpaying for groceries in the environment. Of course, this strategy works better for larger families than smaller ones. Consumers also don’t want to overbuy and then waste food, which also increases their costs. Additionally, consumers may consider using store brands.”
Jeff Shockley, Ph.D. – Professor, Virginia Commonwealth University

How important is budgeting when it comes to saving money on groceries?

“Budgeting is absolutely critical; it’s the GPS for your financial journey. A budget isn’t about restriction or telling you that you can’t have things. Instead, it’s a tool that provides control, clarity, and empowers you to make conscious decisions about how you spend your money. For many households, groceries are one of the largest and most flexible expenses. By setting a specific, realistic budget for food, you are not only giving yourself a spending limit but also becoming aware of where your money is going. This awareness is a powerful catalyst for change. As the financial guru Dave Ramsey often says, ‘A budget is telling your money where to go, instead of wondering where it went.’ This quote perfectly captures the transformative power of taking charge of your finances. A budget helps you ensure you are spending on your priorities, and it allows you to reallocate the savings toward other important goals, like building an emergency fund or paying off debt. Ultimately, a grocery budget is not a limitation but a foundation for financial control, awareness, and the reallocation of funds toward long-term goals.”
Andrew Burnstine, Ph.D – Associate Professor, Lynn University

“Most people buy groceries when needed and do not budget. Packaged goods, such as crackers, potato chips, and snacks (often referred to as impulse buy items), may be the area where budgeting can yield the most significant savings. Outside of meat, this is where we have seen the steepest price increases. It could also benefit your health to avoid overspending on these items.”
Jeff Shockley, Ph.D. – Professor, Virginia Commonwealth University

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

“The current economic environment, marked by high inflation, has fundamentally reshaped how households approach grocery shopping. With food prices having increased significantly over the last few years, consumers are no longer shopping out of habit; they’re making conscious, strategic choices. This has led to a major shift in behavior, with a significant number of shoppers now actively seeking out sales and coupons, switching from name brands to more affordable private-label alternatives, and buying in bulk to lock in lower prices. A 2024 study found that a large percentage of consumers have adjusted their shopping habits, with many adopting multiple cost-saving strategies to navigate this financially challenging landscape. Ongoing inflation has forced consumers to become highly strategic shoppers, actively seeking sales and switching brands to cope with rising food costs.”
Andrew Burnstine, Ph.D – Associate Professor, Lynn University

“Groceries have been one of the most visible areas where cost increases have been observed since the COVID-19 pandemic. That being said, grocery pricing is sticky. Once food prices increase, we rarely see declines in such prices. Groceries are also vulnerable to short-term shocks, such as the bird diseases and egg shortages we saw last year, which can cause price spikes in some cases. I am very concerned about the impact of tariffs, which take approximately 6 to 9 months to trickle through to pricing, right when seasonal sourcing shifts typically occur in the industry. Much of our food is sourced through the global supply chain, and blanket tariffs will be passed on to consumers in the form of price increases. For example, we are not going to ‘Make Bananas Great Again’ by growing them in the good old USA. Other goods, such as coffee and seasonal access to vegetables, are likely to experience similar negative impacts. Whenever you introduce constraints on how buyers of food can source it, you either increase costs or pass through the prices.”
Jeff Shockley, Ph.D. – Professor, Virginia Commonwealth University

Tips for Saving Money on Groceries

1. Budget carefully: Creating a budget lets you know exactly how much you can afford to spend, which can prevent you from making impulse purchases while shopping. Always stick to your budget and try to make a shopping list before going to the store.
2. Use the right credit card: The best credit cards for groceries can save you 1.5% to 6% on supermarket purchases. That can definitely help take the sting out of inflated prices.
3. Take advantage of discounts: Grocery stores typically have sales on a regular basis. They also often provide coupons, either online, through an app or by mail. You should also join stores’ free loyalty programs to take advantage of exclusive member discounts.
4. Buy store-brand items: Store-brand items often taste very similar to name-brand groceries but cost a lot less. If you’re not picky about what brands you buy, you can save a ton each time you shop.
5. Look for clearance items: Your local grocery store may put items that are close to their expiration date on clearance, selling them for far less than the normal retail price. You’ll just need to eat these items quickly so they don’t spoil.
6. Buy in bulk: Consider shopping at warehouse stores, which sell groceries in bulk at steep discounts compared to buying the same number of items individually. These stores are most worthwhile for people with big families who go through a lot of groceries.

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• Changes in Inflation by City