Got No Dough - Saving Money in Slim Times

I think one of the biggest causes of confusion when shopping is package size vs. cost. For example, you see a loaf of bread for $1.00 and another loaf for $1.29. Your gut reaction is to grab the loaf for $1.00 and move on with your shopping, thinking you got a great deal.

And that’s exactly what grocers and manufacturers want you to do. Meanwhile, you’ve just spent more than you should have because the cheaper package was a poorer value based on the cost per ounce. Let me explain.

Loaf A was $1.00 and was 16 oz. Loaf B was $1.29 and was 24 oz. If you take $1.00 and divide it by 16, you get .o625 cents (price per ounce). If you take $1.29 and divide it by 24 you get .05375 cents (again, the price per ounce). While a penny may not seem like much, in the grand scheme of things it can really add up.

Some supermarkets will take the struggle out of figuring these things out for you and will list the price per ounce on their tags. Others do not and you will need a calculator (or a PhD in math) to figure it out.

One last tip when comparing the price per unit - make sure the units match. I’ve seen two products side by side and one will say 16.4 cents per ounce and the one next to it will say $1.60 per pound. At first glance you’ll be shocked by the comparison - but after further looking into it you’ll have to do a little more math to get the better value.

Remember…the journey of saving a dollar starts with a cent.