How can I stretch my grocery budget?

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Use a rewards credit card as part of your grocery shopping strategy.

If there are fewer items on your grocery list these days, you're not alone. Consumers across the country are tightening their belts—and trimming the fat from their supermarket purchases. Using credit card reward and rebate offers can be one of several strategies to stretch your limited household resources.

The average American household spends about 14-15% of their household budget in food, and more and more consumers are worrying about their grocery bills. Over 70% of consumers cite higher grocery bills as a concern, according to a 2008 USA Today/Gallup Poll survey.

It's hard to shop at the supermarket on a limited budget—especially when your grocery cart can fill up with not just groceries—but prescriptions, health and beauty items, school supplies and other essentials. Just as you shop the sales circulars and use coupons to your advantage—you can find ways to save on groceries using your rewards credit card. By using a rewards credit card for grocery purchases, you can earn cash rewards, points or other types of credit card rewards.

Do the math when supermarket shopping.
Understanding—and adjusting—your grocery shopping habits can make a big difference in cutting your costs. By using your credit card you'll know exactly how much you spend at the grocery store month by month. This can help you determine what your food costs actually are, which can help you better budget your money.

Be vigilant in looking for the best value on the grocery store. Before you put the item in your cart, compare the unit price (such as the cost per ounce). A larger size may not always mean a better deal. Likewise, items on sale might be costlier than store brand items at regular price.
Check the register to make sure your items are rung up correctly and your coupons or other discounts were included.

Save more money with special offers

Pair up, or layer, the Sunday circular coupons with coupons you find at the grocery store—or use a manufacturer's coupon on sale items.
Stock up on food items or pantry shelf staples you use most often, printing a great online coupon multiple times—or buy several issues of a coupon-packed Sunday paper.
Check the backside of your grocery store receipt for coupons and free grocery offers.
Check your reward credit card to find the places where you can earn even more cash back, rewards or points for purchases.

Some other money-stretching grocery strategies.

Shop nearby farmer's markets for affordable locally-grown fruit and vegetables. Farmers' markets are also good outlets for produce–as well as cheeses, dairy products, organic meats, homemade jellies and jams, honey, local specialties and fresh baked goods.
Save money buying store brand instead of national brand foods.
Don't shop at eye-level—where the really expensive stuff is. The cheaper items and store brands are on the top and bottom shelves.
Make the extra effort to get rain checks when the sale items are out of stock—and redeem any mail-in rebates.
Keep your food lasting longer by using FoodSavers, sealer bags and freezer containers.
Compare the unit price or cost per ounce. A larger size may not always mean a better deal.
Buy in bulk and split your purchases with family and friends.
Warehouse clubs and superstores offer great values on fresh produce, meat, and bakery goods as well as non-perishable items. You may also save money on prescription drugs, eyeglasses, insurance, household furniture and vacation packages when you shop at warehouse clubs.

Big shopping trips can add up—and a low or $0 interest rate credit card can help you get what you need now while still managing your cash flow. With a $0 or low APR credit card you can make those large purchases when you need to—and pay for it with no finance charges by your credit card due date.

Using a rewards credit card to stretch your shopping dollar may not be top of mind—but being able to earn up to 5% back on your purchases can add up. Especially if you are able to use your points or rewards for items your family needs or extras you'd otherwise be unable to afford.

Discover believes that consumers should be armed with the information they need to help them make informed financial decisions.

Interested in earning cash rewards just for buying what you need? Get 5% Cashback Bonus all year long on everyday purchases in categories that change throughout the year when you use your Discover card. Find out how to earn an extra 5% Cashback Bonus at grocery stores, restaurants, airlines, home, fashion and more.

Want to know exactly how much you spend on groceries month by month? Check out our online Spend Analyzer—a fast and easy way to see how you're really spending.

TIP: Using a credit card for groceries can help supermarket shoppers better track their spending habits. Because all transactions are on their credit card statements, the amount spent on groceries per month can be easily itemized and statistically analyzed, suggests the personal finance Web site MoneyBlueBook.com². This organization feature goes a long way in helping cardholders better plan and tweak their grocery shopping budgets.

TIP: Use your grocery store loyalty card to save even more money, suggests CBSnews.com³. "Not only can these lead to instant savings at the checkout, but sometimes, stores will print out coupons with your receipt based on your buying trends."