Strategies for Saving Money on Groceries and Restaurants
This post is sponsored by American Express
If you had to reduce your spending by 10%, where would you look for the money?
You might consider cutting your rent by moving to a cheaper apartment, reducing your car insurance quotes by shopping around for the best rates, or looking for a better deal on your cell phone and internet plans. While these items are an excellent starting point when saving money, there is another category that eats up thousands of your hard-earned dollars every year, and that’s groceries and restaurants.
The truth is saving money on groceries and restaurants isn’t easy and requires consistent effort. But, by sticking to a few simple habits and streamlining your savings by using one of the best credit cards for groceries and restaurants, you can easily save hundreds of dollars on your food-related bills every year.
Here are our proven strategies for saving money on groceries and restaurants.
How to save money on groceries
Make a list
Making a grocery list is a sure-fire strategy to stay on budget while grocery shopping. A list helps you avoid unexpected or unnecessary impulse purchases; but make sure to give yourself room for one splurge.
More veggies, less meat
Meat is an expensive way to add protein to your diet, so reducing your consumption can help your budget. Consider cutting down on your meat consumption and incorporating cheaper, protein-rich alternatives into your meals (like lentils, beans, and legumes) to improve your bottom line, your waistline, and the environment.
Buy generic
Switching from name brand to generic staple products is an easy way to reduce your grocery spending. By choosing generic brands when you’re buying staple items like black beans, frozen vegetables, and cleaning products, you can prioritize name brand items where the difference is more noticeable.
Coupons and discount days
Get to know your weekly flyer and stock up when items go on sale or have coupons. If you’re a student, most grocery store chains have student days that offer 10% off your total purchase, so tweaking your schedule to visit on those days is a smart move.
Shop alone
If you have children, leave them at home while grocery shopping, and avoid going shopping when you’re hungry. These two habits will limit your impulse purchases and make it less likely that you’ll deviate from your grocery list.
How to save money at restaurants
Choose lunch over dinner
It can be hard to turn down dinner invitations with friends, so stick to your budget by suggesting lunch instead. That way, you can take advantage of the cheaper lunch menu options. Salads, soups, and sandwiches tend to cost less than appetizers and entrees.
Share with friends
Sharing food with friends is almost always less expensive than going in it alone, so the next time you visit a restaurant, suggest splitting a larger meal like nachos to cut down on costs.
Choose beverages or food
An easy way to reduce the cost of your meal is to forgo sugary drinks and alcoholic beverages in favour of water. Or, consider eating dinner at home and going out for drinks after. Choosing either dinner or drinks, not both, can help keep your bill lower.
Using the right credit card
The tips that we’ve mentioned above will help you save money on groceries and eating out, but you won’t be able to reduce either of these spending categories to zero. Since buying food is unavoidable, optimize your budget by earning rewards on your spending with the right credit card.
Some credit cards even help you earn extra rewards points on food-related purchases, like the American Express CobaltTM Card. Earn 5 Membership Rewards® points for every $1 in Card purchases at eligible restaurant, bars, cafes, grocery stores, and food delivery in Canada with Cobalt.
Over the course of a year, these points can add up to hundreds of dollars in rewards that can be used to bankroll a future vacation or earn gift cards and merchandise. This card also offers 2 points per dollar spent on ride shares, transit, and gas, and 1 point per dollar spent on everything else.
Best for Groceries & dining
based on spending $2,200/mo after $156 annual fee
- Earn rewards
1pt – 5pts / dollar spent
- Welcome bonus
15,000 points (a $150 value)
- Annual fee
$156
Perks of the American Express Cobalt® Card
Perks | Details | |
---|---|---|
Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
Waived foreign transaction fees | Not included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
Travel accident insurance | $250,000 | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
Travel emergency medical | $5,000,000 for first 15 days (under 65) | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
Car rental insurance | MSRP of up to $85,000, for 48 days | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
Trip cancellation | Not included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
Trip interruption | Not included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
Flight delay insurance | $500; delays 4 hours or more | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
Baggage loss insurance | $500 per trip for all persons | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
Baggage delay insurance | $500; delays 6 hours or more | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
Hotel/motel burglary | Included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
Mobile insurance | Up to $1,000 for 90 days | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
Purchase assurance | Up to $1,000 for 90 days | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
Extended warranty | Up to one additional year | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
Price protection | Included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- In your first year as a new Cobalt Cardmember, you can earn 1,250 Membership Rewards® points for each monthly billing period in which you spend $750 in net purchases on your Card. This could add up to 15,000 points in a year. That’s up to $150 towards a weekend getaway or concert tickets
- Earn 5x the points on eligible eats and drinks in Canada, including groceries and food delivery. Spend cap applies.
- Earn 3X the points on eligible streaming subscriptions in Canada
- Earn 2X the points on eligible ride shares, transit & gas in Canada
- Earn 1 additional point on eligible hotel and car rental bookings via American Express Travel Online
- Earn 1X point for every $1 in Card purchases everywhere else
- Enjoy access to hotel bookings, a room upgrade (when available), 12pm check-in and late check-out (when available), and up to $100 USD hotel credit to use on amenities when charged to the room for a stay of 2 or more consecutive nights through The Hotel Collection from American Express Travel
- Transfer points 1:1 to several frequent flyer and other loyalty programs
- Cobalt Cardmembers receive regular Perks such as bonus reward offers and access to great events
- Access Front Of The Line® Amex Presale & Reserved Tickets to some of your favourite concerts and theatre performances and special offers and events curated for Cardmembers with Amex ExperiencesTM
- American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, (I/we) may receive compensation from American Express, which can be in the form of monetary payment.
Ratehub’s take
The American Express Cobalt is one of Canada’s best travel credit cards. If you’re looking for a versatile credit card that rewards both everyday spending and travel, the American Express Cobalt is an ideal choice. Cardholders can enjoy strong travel insurance, a generous welcome offer, and flexible point redemption options.
Pros
- Exceptional point earning: 5x the points on eligible restaurant and food delivery, 3x the points on eligible streaming services, 2x the points on ride shares, transit and gas. The earning potential for restaurants and takeout is significantly higher than most other cards
- Flexible point redemption: Travelers can choose from three ways to use their points: points 1:1 to several valuable loyalty programs including Aeroplan, use the Fixed Points Program to simplify redemptions regardless of travel dates, or use points for statement credits at a rate of 1 point = 1 cent. Or, redeem Membership Rewards for travel, gift cards, merchandise, or purchases
- Exclusive access: Enjoy privileges such as Front of the Line Presale and Reserved tickets to concerts, theatre performances, movie screenings, culinary events, and other special offers
- Comprehensive travel insurance: Benefit from a strong travel insurance package, including up to $5,000,000 in travel emergency medical
- No additional fee for authorized users: Add authorized users for no extra cost (an average fee of $30-50 on other comparable cards)
Cons
- Monthly fee: A monthly fee of $12.99 (totalling an annual fee of $156, which is higher than most other rewards cards)
- Limited acceptance: American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
- Travel insurance age limitations: The travel insurance package does not cover trip cancellation or medical coverage for cardholders over the age of 65
- Lack of airport lounge access: Frequent travellers may be disappointed as this card does not offer access to airport lounges
Eligibility requirements
Minimum credit score: 725
Minimum income: N/A
Interest rates
Purchase interest: 21.99%
Cash advance: 21.99%
Balance transfer: N/A
This post was sponsored by Amex Bank of Canada. However, the views and opinions expressed in this blog are purely our own.