Dave Ramsey: 'Whatever You Think You're Spending At The Grocery Store, You're Wrong. It's More Than That'

It's no secret that food costs have gone up in recent years. But according to personal finance expert Dave Ramsey, there's another reason your grocery budget might not be working: denial.

In a recent video clip Ramsey shared on TikTok, he made a bold claim: "Whatever you think you're spending at the grocery store, you're wrong. It's more than that." His point? Many people underestimate how much they actually spend on food each month — and that can throw off their entire budget.

Here's a closer look at what Ramsey means and how you can get your grocery spending under control.

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Most People Underestimate Their Grocery Costs

In the clip, Ramsey shared that he often hears from people who believe they're spending impossibly low amounts on groceries — sometimes as little as $50 a month. "No you don't," he said, emphasizing that people tend to lowball their estimates. "There's something about denial at the grocery store — we're in denial about what we spend."

That denial can lead to busted budgets. If you set aside too little for groceries, you're likely to overspend somewhere else or dip into savings or credit to make up the difference. Ramsey recommends overfunding your grocery budget in the first few months of budgeting so you're prepared for the real numbers.

What the Averages Say

According to the Bureau of Labor Statistics, the average grocery cost for food items only per person is $504 per month. That figure can vary based on your household size, location, and dietary needs.

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Here's what the U.S. Department of Agriculture estimates for different household sizes per month:

• One person: $297–$558
• Two people: $614–$963
• Family of four: $996–$1,603

Keep in mind that these are food-only estimates — they don't include restaurant meals or takeout, which many families rely on throughout the week.

How to Find Your Grocery Number

Instead of guessing how much you spend, Ramsey Solutions recommends reviewing your bank or credit card statements to track your actual spending over the past few months. Take the average and use that number as a starting point for your budget.

From there, look at the rest of your monthly expenses — housing, utilities, transportation, debt payments — and adjust your grocery budget if needed. If you're consistently going over, it may be time to make changes either in your spending or in how much you're allocating to groceries.

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Tips to Keep Grocery Spending in Check

If your food costs are higher than you’d like, Ramsey Solutions has a few tips to bring those costs down:

• Shop your pantry first: Use what you already have to avoid waste and reduce your grocery list.
• Switch stores: Consider lower-cost options like Aldi or Walmart for better prices.
• Buy generic: Store-brand products are often cheaper and taste just as good.
• Plan meals around sales: Build your menu based on what's discounted that week.
• Use coupons strategically: Only buy what you'll use — and don't overbuy just because something's on sale.

Bottom Line

Ramsey's grocery warning may sound blunt, but it's rooted in a budgeting truth: if you don't track what you're really spending, your budget won't work. Start with real numbers, build from there, and be willing to adjust as needed. That's how you'll take control of your grocery bill — and your finances.

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