smart ways to save on groceries

3. Groceries

The U.S. Department of Labor's Bureau of Labor Statistics says Americans spend nearly 14 percent of the household budget on food. Gary Foreman, publisher of Stretcher.com, believes it's closer to 20 percent, and of that amount, 25 percent is wasted.

"That's because it either: 1) Gets bought and goes bad before they cook it; or 2) They cook it and it goes into the refrigerator -- with every intention of turning it into tomorrow night's leftovers -- but it ends up becoming a science project," he says.

The Goal: Reduce wasted food by 25 percent. You'll see your grocery dollar go a lot further. Cutting coupons can make a dramatic difference.

"Layer the savings, don't settle for just one kind of savings at the grocery store," says Ellie Kay, author of "How to Save Money Every Day."

She advises shoppers to learn to compound savings by monitoring store sales and using double coupons, cash-off-your-next-shopping-trip vouchers, store coupons and more.

It's a good idea to keep track of the prices of frequently bought items in a notebook, suggests Gary Foreman, publisher of Stretcher.com. "So when you see a sale price, you can truly judge if it's a good deal and stock up on it."

Shopping Tip: Make a simple meal plan for the entire week before you go shopping to keep you from buying things that look enticing but don't get eaten.

Cooking Tip: Microwaves can be a busy family's best friend. Prepare a dinner plate or two using leftovers; date and freeze them. Display a list of meals on the front of the freezer. When something gets eaten, cross it off the list. When a new meal is ready for the freezer, add it to the list in chronological order so older food gets eaten first.

Potential Savings: Ellie Kay says the average family of four can save up to $3,900 per year by following these tips.