Estimating for a family's grocery budget must take into account food preferences, family size and geographical location. Families looking to lower their monthly grocery bill can change their buying habits to save money.
According to the Money Central website, groceries make up approximately 7.5 percent of the monthly budget. In dollars, a family with four people spends an average of $540 a month, as of 2010, on groceries reports the Family Resource website.
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Food costs vary depending on where you are living. For example, a family living in Pella, Iowa spends 8 percent less on its food and grocery bill than the average American. However, residents in San Francisco, California spend 20 percent above average on food of groceries.
Lowering the Bill
A family can spend less than 7.5 percent of their budget on groceries by buying sale items, using coupons and opting for less expensive alternatives.