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  THE LOW INCOME & URBAN HOUSING BLOG  

Monday, October 2, 2017

3 Reasons Why Low Income Families Actually Pay More for Groceries

African American woman grocery shopping

According to the U.S. Department of Agriculture (USDA) Economic Research Service, in 2014, middle income households spent an average of 13.4% percent of their income on food, while low income households spent 34.1% of their income on food.

Apparently, families with smaller incomes spend a much bigger percentage of their budget on food, but why? Here are three major factors:

#1 - Available cash doesn't always coincide with sales dates: Low income families buy when they have the money, typically after they receive their paycheck. Unfortunately, this may not coincide with sales dates that would allow them to save more money. They have to buy when they have the money.

#2 - Unable to buy in bulk: Buying in bulk is one way of saving money. Generally, buying in bulk means the price is cheaper per quantity. But low-income families often do not have the extra cash to buy more, so they are unable to take advantage of the lower prices.

#3 - Limited transportation: Many people like to shop around for the best deal. Low-income families are often limited in access to transportation that would allow them to shop at other store further away in order to get better deals on groceries.

What is ironic about this situation is that stores like Costco and Sam's Club, that cater to people with tighter budgets by offering products in bulk at lower prices, often attract wealthier customers, rather than the low-income families they may be targeting.

Read more at www.time.com/money/4327782/low-income-shopping-bulk/


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