Grocery costs have risen sharply in Australia, and for large families it can feel impossible to stay on budget. We currently budget $500 per week for groceries for a blended family of 7, and throughout 2026 we’re tracking exactly how much we can save — and how.
This post breaks down how our $500 grocery budget works in real life, what we focus on, what we avoid, and how we’re tracking savings over the year. This isn’t about perfection — it’s about practical systems that work for busy families.
Our $500 Weekly Grocery Budget (Family of 7)
Our household grocery budget is $500 per week, which works out to $26,000 per year.
Our family includes:
- 2 adults
- 5 children
- A mix of school lunches, family dinners, and at-home meals
We shop mainly at major Australian supermarkets and aim for consistency rather than extreme restrictions. Some weeks are better than others — and that’s part of the process.
What Is the Average Grocery Cost for Australian Families?
Grocery spending varies widely depending on household size, location, and eating habits. However, many Australian families report spending well above $300–$400 per week on groceries once children are involved, with larger families often spending significantly more.
For families of 5–7 people, weekly grocery costs can climb quickly once school lunches, snacks, and multiple dinners are factored in. Rising food prices and convenience items can push costs higher without much notice.
That’s why we’ve intentionally capped our grocery budget at $500 per week and are tracking how much we can realistically save without compromising on meals our family will actually eat.
How We Split $500 Across the Week
Rather than spending the full amount in one shop, we loosely divide our grocery spending across the week.
Typically, this looks like:
- One main grocery shop
- One small top-up shop if needed
- Fruit and vegetables as required
- Pantry items only when something runs out
We don’t assign rigid dollar amounts to each category. The focus is staying under the weekly total, not micromanaging every item.
What Actually Keeps Us Under $500
These habits make the biggest difference for us.
Shopping Around Specials
We prioritise half-price items and build meals around what’s on special, rather than deciding meals first and shopping blindly.
Meal Planning (Simple, Not Fancy)
We plan dinners that:
- Use overlapping ingredients
- Feed multiple people
- Work as leftovers
Complicated recipes usually cost more and lead to food waste.
Using the Pantry First
Before every shop, we check what we already have. This reduces duplicate purchases and makes no-spend or low-spend weeks possible.
Buying Foods the Kids Will Actually Eat
Budget food only saves money if it gets eaten. We stick to meals and snacks we know will be consumed rather than experimenting every week.
What We Cut to Save Money
Cutting a few habits has made a noticeable difference.
We limit:
- Single-serve snacks
- Packaged drinks
- Convenience foods
- Impulse buys at the checkout
- Buying “just in case” items
These small changes add up over time.
How We’re Tracking Grocery Savings in 2026
For 2026, we’re treating $500 per week as our baseline.
Each week:
- If we spend exactly $500 → $0 saved
- If we spend less than $500 → the difference counts as savings
For example:
- Weekly spend: $460
- Weekly saving: $40
We track:
- Weekly spend
- Weekly savings
- Running yearly total
This lets us clearly see what’s working and what needs adjusting.
Common Grocery Budget Mistakes for Large Families
From experience, these mistakes can quietly blow the budget:
- Shopping without a plan or list
- Buying duplicate pantry items
- Trying too many new recipes at once
- Shopping while hungry
- Over-buying snacks “for convenience”
Avoiding these consistently matters more than one perfect shop.
What We’re Testing to Save More
Throughout 2026, we’ll be testing and documenting:
- School lunches kids will actually eat
- Cheap family dinners under $5 per serve
- No-spend and low-spend grocery weeks
- Pantry and spice organisation
- Using reward points to offset Christmas costs
This page will be updated as we track progress and savings.
Final Thoughts
A $500 grocery budget for a family of 7 isn’t about cutting everything back or eating poorly. It’s about systems, habits, and being realistic about what works long-term.
We’ll continue tracking our grocery spend throughout 2026 and sharing what actually makes a difference.