University of Wisconsin - Extension

Contact: Kathy Metzenbauer, 608-847-9329, kathleen.metzenbauer@ces.uwex.edu

Mauston, Wis.--What are your financial dreams? Would you like to pay off some bills or set aside money to meet a financial goal?

According to Kathy Metzenbauer, UW-Extension family living educator in Juneau County, it is difficult to lower your debt or save for the future without a clear understanding of how you are spending your money. Developing a spending plan for food is an effective tool to help you get the most from your money.

"First, look at your current spending and track how much you spend for food," says Metzenbauer. "Jot down all food-related expenses and keep food-related receipts for two weeks. Save all your notes and receipts in an envelope. Remember to include things like eating out during your lunch break or stopping for bottled water, coffee or soda. Look for your personal spending trends such as eating out or using vending machines."

"The average annual household spending on food (eaten at home or eaten out) is about 13 percent of the total household income," she says. "If you are spending much more than that on food, consider ways to cut back."

According to the Consumer Expenditure Survey from the U.S. Bureau of Labor Statistics, families spend an average of $2,634 on food outside the home, or 44 percent of their total food spending for the year. If you eat lunch out every day, try small changes such as making your own lunch one day a week for an average savings of $5 to $8 per meal. This equals around $400 savings per year. Dinner at home can save $3 per week or $150 per year.

Metzenbauer offers these savings tips:

--Don't shop for food when you are hungry. Always use a list. Look at store advertisements before you go to plan meals around foods that are in season and on sale. Buy generic foods rather than name brands. Stock up on beverages at the grocery store instead of using vending machines.

-Cooking can be much more than putting a frozen pizza in the oven. Learn the basics of cooking. Make your own coffee or cappuccino at home and bring it to work in a thermos. Grate your own cheese rather than buying it grated. Use dry milk for cooking instead of whole. By using leftovers you can have two meals for the price of one.

Think about whether you can make better choices. By changing spending habits or improving choices, you can save your cash and use it more wisely, for food or other financial goals.