Concerns about adequate food access have been rising in the past few years. The number of people experiencing food insecurity has increased, and so has the cost of food. This has created a situation where people have to choose between eating and other necessities.
The latest USDA statistics show that 12.3 percent of American households experienced very low food security in 2017. This means they lacked adequate nutritious food due to lack of money and/or access to facilities or organizations that provide such foods.
The average household income for people living in poverty is just over $10,000 per year, according to the Washington Post. That’s less than $100 per week for an individual, which makes it difficult to afford an adequate amount of food.
The Food Bank For New York City says the average minimum budget for a healthy diet is $148 per week for one person – almost half of the weekly income for someone living in poverty.
Maximum food allowance formula
According to the United States Department of Agriculture (USDA), the average cost of a healthy diet is approximately $50 per week for one person. For most people, spending half their income on food is far too much, which is why there is a growing movement among nutrition experts to set a maximum food allowance per week.
The Healthy Eating Budget was created by nutrition expert and dietician Lucy Cavendish and uses the USDA’s weekly budget for food as a guide.
This budget divides the cost of food into five groups: fats and oils, vegetables, fruit, grains, and protein. Each of these groups has a certain number of servings that you should get each day according to nutritional guidelines.
The number of servings in each group varies depending on your gender, weight, and activity level. By using the numbers on the chart based on these factors, you can determine how many dollars you should spend on each group per week.
Examples of maximum food allowances
There is no hard and fast rule for how much of your income should be spent on food. However, nutritionists and dieticians suggest spending no more than 10% of your daily caloric intake on foods that are not part of your meal plan.
This includes snacks as well as foods you buy at the grocery store or eat out. It also does not take into consideration what you spend on supplements or meal delivery services.
The American Food Diet, developed by the USDA, recommends a minimum amount of calories based on gender and age and a maximum amount based on size and activity level.
Whether you are an average size adult female or an athletic male, the maximum amount of calories recommended is 2,500. Assuming you stick to this amount, spending $250 a week on food would put you in the safe zone.
However, if you are eating more than 2,500 calories per week, then spending less than 10% of that on junk food will help keep your nutrition in check.
Taking care of your health
While health is undeniably important, the truth is that health doesn’t pay the bills. In fact, your job may demand so much of your time and effort that you have little left over for your health.
Unfortunately, this can have serious consequences for your wellbeing.
Many people rely on their jobs to determine their spending habits. This is why so many people spend more money than they have — because they don’t know how to budget any other way.
Knowing how to budget for your health may be the only way to truly save money on health care in the long run. Health care costs are continually rising, after all.
Allowing for dining out
As mentioned earlier, food is a basic need, so it’s important to make sure you’re setting aside enough money for groceries and dining out.
According to one study, the ideal percentage of net spendable income that should be allotted for food is 18%. This means that if you make $3,000 a month (net spendable income), you should spend about $630 on food each month.
This number may seem high, but it takes into account both grocery purchases and eating out. It also accounts for people who may have higher or lower spending on food depending on their lifestyle.
Another study found that middle-income households (making between $50,000 and $100,000 per year) spend about 11% of their total household expenditure on food. This number was closer to 8% for lower-income households ($30,000-$50,000 per year) and closer to 13% for upper-income households ($100,000+ per year).
Considerations for families
Families have special needs that require extra attention when it comes to planning and spending money. There are several different categories of spending that need to be taken into account when creating a budget for a family.
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Maximizing savings for food
As mentioned before, most people who track their spending report that they find places to save money, but they struggle to place extra money into savings.
Putting extra money into your food budget is a smart way to save with Trackin’ Tin. We recommend setting aside at least 10% of your net spendable income in the Tracking Tin account.
By doing this, you will have a solid two weeks’ worth of food in your kitchen and freezer (including staples) at all times. This way, you can avoid going to the store when you don’t have any money in your account.
We also recommend adding a buffer of one week’s worth of food in the pantry and fridge. Doing this will ensure that you do not run out of food for at least a week after entering the Tracking Tin account.
Understanding net income and net spendable income
Net income is the amount of money left over after taxes are paid. Many government services request tax filings to determine eligibility for certain benefits.
Net spendable income takes into account the cost of living, and it’s what you have left over after you’ve paid all your bills and expenses. For this calculation, expenses can include things like rent or a mortgage payments, utilities (electricity, internet, etc.), groceries, transportation (bus passes, etc.), and general spending (shopping).
The average American spends about 6% of their total income on food according to Business Insider. However, in an article for The Independent, nutritionist Rosie Harris suggested setting aside a minimum of 5% of net spendable income on food.
This number was based on the UK economy and currency but provides a good reference point.
Using a budget to track spending
Budgeting is another essential money management tool. Budgeting is the practice of tracking spending and giving a set amount of money a budgeted category.
There are two main types of budgets: cash and net spendable income. The cash budget tracks the actual money that is being spent, and the net spendable income budget tracks what amount of income remains after essential expenses have been paid.
Both are important in tracking spending due to different circumstances. For example, if someone has a low net spendable income, they may need to put more into their food budget than someone who has a higher income.
By having a clear understanding of the basic needs for each category, this can help prevent spending excess in other areas.
