Money Watch 8: Control Monthly Spending

INDIANAPOLIS (WISH) - Getting control of your finances means understanding how much money you spend each month. In week 3's Money Watch 8 Challenge: 60 Days to Change, our three families focused on how to do just that.

One of the monthly expenses people have control over is food.

"When I come to the grocery store I usually have a list of things that I need," said Amy, a stay at home mom.

Amy spends about $100 a week on groceries for her family of four.

Peter Dunn is the financial expert behind 60 Days to Change. He said for Amy, and anyone trying to get a handle on monthly spending, the grocery store is the perfect place to learn important lessons.

"The grocery store is the single best place to work on your financial habits because you go every single week. You're whipping out your credit card, debit card, or check book every single week. And you have choices," said Peter.

Peter went to the store with Amy, and showed her how to concentrate on fresh foods, store brands and sale items.

"Controlling your monthly spending is about re-examining your monthly spending habits. From going out to eat, to going to the grocery store even reexamining your utility bills," said Peter.

Amy's husband Brent believes the investment in groceries is a good one.

"She likes to cook, so some of the things she puts together are more than just meat loaf and mac and cheese. I'm willing to spend a little bit more in that department," said Brent.

"As far as grocery shopping, I would go to the grocery store, spend about $100 on groceries, and then find myself at the end of the week or two weeks throwing the majority of the groceries away," said Nadia, a single mother.

Nadia said she was throwing away groceries, because instead of using the food in her fridge, she would go out to eat with her 3-year-old son Aidan.

"I calculated on one of my bank statements, that I was spending $350 to $400 on food, on fast food and lunch and dinner," said Nadia.

Nadia said she is now saving about $350 a month because she has cut way back on dining out.

"Some "to-go" restaurant really sounds good and it really sounds easy, but what I've been thinking of is, how much easier it's going to be on my bank account and how much more my savings account is going to grow if I am just a little more self-disciplined about coming home and preparing my meals," said Nadia.

Merita said, "I know that one of my bad habits is. I feel like I was never born in the depression, but I shop as if I was. So I stockpile. This is a deal, so I load up. Cause I know that one day we will run out of food."

Merita does the shopping for her and husband Joe and their 23-year-old son who lives at home. But Joe said she's not the only one to blame.

"We may go to get milk and before you know it you've got eggs and then fruit and vegetables and you're getting a bag of this and a bag of that. And before you know it you've got a $60, $70 bill," said Joe.

And that brings us back to Amy at the grocery store.

"Not too damaging this week," said Amy.

"You saved $11 just by being a member of their club. Their little card club," said Peter.

Her usual $100 grocery bill was just under $60.

Amy said, "Well, my husband will be happy this week."

Now, having Peter and a TV camera looking over Amy's shoulder may have helped her focus. She was aware of her spending, stuck to her list, and looked for store brands and sale items. This week, Amy and family have an extra $40 that they can save or put towards another bill.

In addition, Peter says it is ok to splurge occasionally. But he says splurge on one item, not 10. If you're going out for a fancy dinner, then don't spend extra on groceries. If you splurge on groceries, don't spend hundreds on a meal out.

Click here to join the Money Watch 8 Challenge any time.