We spend an average of £58 a week on food and non-alcoholic drinks in the UK, according to the latest figures from the Office for National Statistics.
That means an average of more than £3,000 a year is spent in the supermarket on food and drink per household over a year – and that’s before you’ve counted any meals and drinks outside of the home.
So wouldn’t it be nice to spend less and even earn a little more on that shopping? The good news is that you can, you just have to be a little cannier about it.
Here’s how:
Cashback apps – £300 a year
There are a number of cashback websites and apps so it’s a good idea to browse around and find the one that works best for you.
It’s quite a straightforward premise; they earn a fee for directing you to shop in a certain chain or buy a certain product and they then pay a portion of that fee back to you.
They earn something, you earn something and the supermarket secures your business – everyone is a winner.
Such websites are probably best known for cashback on big purchases like holidays and sofas, but they often have apps that can be used as you shop.
For example, the Quidco ‘ClickSnap’ app lets you browse offers, buy them in store or online and share a photo of the receipt in order to gain cashback.
And there are dozens of other apps, including CheckoutSmart, Shopmium, TopCashBack’s ‘Snap and Save’ offer and more.
You can’t save money on all your shopping because it’s primarily incentivising special offers and new products.
However, a relatively savvy shopper should be able to earn a decent amount.
Quidco reports that its average active user earns £300 a year – and there is nothing stopping you using all the different apps available and gaining all the benefits.
Cashback credit cards – £30+
If you are very disciplined with your money and know that you would clear the balance each month then a cashback credit card can be an easy way to earn money on almost all of your spending.
For example, the market-leading cashback card, from Amex, pays up to 5% for the first three months and up to 1.25% thereafter. It has a £25 fee, however, so you need to make sure you’re using it enough to earn more than that.
There is a fee-free version, which pays a lower rate after the introductory 5% rate, but is probably more suitable if you only plan to use it occasionally.
Other cashback credit cards pay up to 1% cashback if you wanted to shop around.
Assuming you used a cashback card for all your grocery shopping and earned 1% back then that’s £30 a year on a weekly grocery spend of £58. If you spend more or plan to use your card for fuel and other big purchases then you could easily earn more than that.
Of course, if you leave a balance on the card then it’s quite likely you will pay far more in interest than you earn in cashback. So this is really only an option if you’re sensible with your spending.
The other option, of course, is to go with a card that pays you reward points you can use at your supermarket, like the Asda Cashback Plus Credit Card.
Despite the name, you don’t earn actual cashback, but you do get vouchers you can use on your supermarket shopping.
Earn cashback when you spend with these credit card
Cashback current account – £108 a year
Another option if you don’t like the temptation of credit cards is to look for a cashback debit card to earn something back on your supermarket shopping.
Some current accounts pay cashback on selected retailers, including some supermarkets, and others provide a cashback perk when you pay for household bills, including insurance, water rates, phone and TV packages.
The amount you earn really depends on which account you choose and how you use it. Some pay cashback as high as 15% with certain retailers and on certain offers.
Market-leading accounts currently pay upwards of £108 cashback a year to customers who make the most of them; however, you do need to look carefully at the options.
All current accounts have different requirements in terms of paying money in, fees and overdraft costs. Be sure to do your homework and find the right account for your circumstances.
Find the current account that best meets your spending habits
Comparison site – £900 a year
Probably the best way to cut your grocery bill is to simply keep more of the money for yourself in the first place.
We are big fans of that here at loveMONEY – check out our guide to paying less for groceries (really do, it’s extensive, you’ll save a bomb).
Another way to keep more for yourself is to cut the price of your shopping to start with.
Websites like mySupermarket can help you save as much as 30% on your weekly shop by entering your basket of goods and then ordering it from the cheapest supermarket.
If you’re spending £58 a week then that’s potentially £17.40 staying in your pocket every week. That’s more than £900 a year – that’s enough for a holiday.
And if you don’t fancy ordering online then just switching to a cheaper supermarket or downgrading to supermarket-own brands, or economy brands, can also save you money.
Just make sure you keep track of what you save so it doesn’t get swallowed up by other household bills.
How do you save or earn money on your shopping? Have your say using the comments below.