The Secret Ingredient to Saving: Your Kitchen
This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.
If your paycheck isn’t stretching as far as it used to and you’re worried about where the economy is headed, you’re probably looking for ways to reduce your expenses.
One biggie is food, and pretty much everyone knows it costs less to eat at home than to eat out. But how much less? We looked into it.
First off, the average U.S. household spent almost $4,000 in 2023 eating out, 30% more than just two years earlier, according to the most recent data available from the Bureau of Labor Statistics.
The cost of eating at home has also grown significantly since the pandemic turbocharged inflation: Groceries are 27% more expensive than they were in March 2020, according to the Consumer Price Index.
So what’s a good estimate of the potential cost savings? As of March of this year, an average meal at home cost roughly $3 to $5 per person, according to data from the U.S. Department of Agriculture.
A meal out, on the other hand, could run you around $15 per person at a fast-casual chain like Chipotle, or $40 or $50 at a fancier sit-down restaurant.
Add drinks, tip, and delivery fees if you’re ordering in, and the bill climbs fast. And if you’re feeding a whole household, those differences multiply quickly.
Think of a family of four who eats out twice a week. If they’re spending $5 per person to eat at home, that’s $20 per meal. If they’re eating out and spending $20 a person, that’s $80 a meal — a $60 difference. Forgoing one dinner out a week could save about $260 a month, or over $3,100 a year.
Food overall — at home or out — is Americans’ third largest expense, behind only housing and transportation. But it’s also one of the more flexible categories in an economy where so many costs feel out of our control.
You don’t have to swear off Chinese takeout or the occasional meetup with friends for dinner and drinks. Cutting out just a few restaurant meals each month adds up. (Tracking your “dining and drinks” spending in SoFi’s free Relay budget app can help.) And if you’re short on time or energy, don’t overthink it — something as simple as a frozen pizza or a rotisserie chicken dinner is just about as easy to get as takeout, at a fraction of the price.
So what? Preparing your own meals can be one of the most manageable, high-impact ways to keep your spending in check. And the money you free up can be used to cover a rent increase, pay down credit card debt, or build up your emergency savings in case there’s a recession.
Related Reading
• How to Stretch a Buck the Old-Fashioned Way (SoFi)
• How to Save Money: 28 Ways (NerdWallet)
• 73 Cheap Dinner Ideas for Weeknight Meals (Taste of Home)
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
OTM20250523SW
Read more
