How to save on your grocery shop now that everything costs more

New data from the Frollo money management app finds that Aussie households are spending more on groceries in 2022.

This represents an 18% increase in grocery spending on the May to June period of 2021.

Due to inflation and the rising cost of living, Aussies are spending more in most areas of life, including healthcare and medical expenses, and fuel, as per the report.

Although each age group is spending more this year, there are clear differences between the generations.

What are different age groups spending their money on?

According to the Frollo report, Gen X (aged around 40 - 55) is being most impacted by rising fuel prices. This is possibly due to work places being open and more people driving to work compared with this time last year.

The average monthly spending on fuel among members of Gen X has increased from $115 to $155, says Frollo.

Boomers (roughly over 55s) have also been spending more on groceries and fuel but they have been affected significantly less than other generations who are spending much more this year.

Boomers are also spending more money on home renovation and maintenance projects, with spending in this category more than doubling since the same period last year ($224 to $646 per month).

All generations are also spending more on hospitality. An increase of 22% has been seen. Boomers have increased their spending in this area the most (35%) and Millennials (roughly aged 25-40) have increased the least (11%).

With all this spending going on, it’s always a good idea to review your budget. Regular shopping at the supermarket is a good place to start and below we have some handy tips to keep your spending on track.

3 ways to save money while doing your grocery shop

1. Make a list at home of everything you need and stick to it. Don’t be tempted by the hundreds of other products that you see at the supermarket. Grabbing two or three extra things that you don’t really need can add more than $10 to each of your grocery shops.
2. Spend more time looking for a cheaper version of the same item. Be aware that supermarkets purposely put the more expensive items at eye level. For example, if you are buying something like tomato sauce, you can currently save $1.70 by buying the Woolworths home brand version, rather than the more expensive option from Masterfoods.
3. Buy items in bulk, especially when they are on sale. Obviously this is only worth it if it isn’t a perishable item and something you will definitely use. This is good for things like spreads such as peanut butter or Milo that have long shelf lives.

If the rising cost of living is worrying you, there are ways you can manage this.

For more information on how to save, check out our guide on 10 easy ways to handle the cost of living.