The biggest expense for a young family is the cost of housing. Rent and mortgage payments are fixed costs which can only be reduced by moving to a cheaper house, so when it comes to saving money we need to look at the next biggest expense - the weekly shopping
bill.
There is a wide range of food-spending patterns depending on household income, the number and ages of family members, people's eating habits and expectations about the standard of food they like to eat.
Whereas some people expect to dine on roast lamb and salmon, others are quite happy living on mince and sausages. Because there is so much variation, food is a prime area for finding ways to cut back and save.
One of the easiest ways to do this is to shop as infrequently as possible with, say, a big fortnightly shop of non-perishables supplemented by more frequent purchases of fresh food.
It is important to buy the right kinds of food as well as spending the right amount.
Every year, the University of Otago publishes a Food Cost Survey which is available at http://nutrition.otago.ac.nz
Click on the consultancy section and then food costs. This survey calculates the weekly cost of a healthy diet for men, women, adolescents and children in major cities and looks at basic, moderate and liberal budgets.
It's no surprise that food for a teenage boy costs $107 a week compared with $85 for a grown man.
A moderate budget for a couple and two children under the age of 5 living in Auckland is $255 a week. For a couple with two teenagers the cost is $359 a week.
Use this guide to set a strict budget for your food so you don't eat your money.
Liz Koh is an authorised financial adviser. The advice given here is general and does not constitute specific advice to any person.
A disclosure statement can be obtained free of charge by calling 0800 273 847.
