Image source: Getty Images
In our busy society, some conveniences are well worth the cost. Food delivery is one expense that many Americans pay to make their lives easier. Americans place an average of 54.4 food delivery orders per year.
Delivery costs can add up quickly if you're not paying attention. Whether you order delivery at least once a week, or a couple of times a month, it's an extra expense that impacts your wallet.
Discover: This credit card has a rare $300 welcome bonus
More: These 0% intro APR credit cards made our best-of list
While delivery services offer a convenient way to get a delicious meal, it's essential to consider where your finances stand before rushing to place an order.
Americans spend $37.28 weekly on food delivery
Do you know how much you're spending on food delivery? It may be a lot more than you think.
A recent survey conducted by Circuit found that Americans spend $37.28 weekly on delivery -- resulting in a monthly spend of $152.51 and a yearly spend of $1,843.72.
Many Americans use food delivery apps like Grubhub, Uber Eats, and DoorDash to get food delivered from restaurants and eateries in their area. But these services can be expensive. Customers end up paying service, delivery, and tip costs on top of the price of their food.
On average, Americans spend $12.80 per order on service fees, delivery fees, and tip expenses -- or $654.44 annually.
Before placing your next order for lunch, dinner, or a late-night snack, consider whether the expense is worthwhile and whether your choice will negatively impact your financial situation.
Four ways to lower your food delivery expenses
When you're used to using food delivery services regularly, it can be hard to cut back.
But you may be able to lower your spending by changing some of your habits.
You may want to give these suggestions a try:
- Invest in delivery service subscriptions to save on fees: Investing in premium delivery service subscriptions like Grubhub+ may be worth it if you regularly order delivery. You could save money on delivery and service fees and score $0 delivery. If you only order delivery occasionally, you likely won't save money this way.
- Pick up your order: If you're ordering from a restaurant that is in your local area, it can be cost-effective to pick up your order. By doing this, you can avoid pricey delivery and service fees. This can be a money-saving move, even if you only do this sometimes.
- Order delivery directly through the restaurant: Many restaurants offer delivery services. While they typically charge fees, these fees can be more economical than the fees charged through delivery apps. Over time, the savings can add up.
- Include food delivery expenses in your budget: Like other expenses, it's good practice to plan how you will spend your money each month. Setting a food delivery budget is an excellent way to hold yourself accountable and minimize overspending.
Don't neglect your financial goals
If you love treating yourself to food delivery, you're in good company. Luckily, you don't have to give up on this convenience. But make sure you keep your personal finance goals in mind before making purchase decisions.
Ignoring your budget and using credit cards to pay for expensive food delivery orders can make it too easy to fall into expensive credit card debt. Instead, it's best to review your monthly spending and consider your food delivery budget first.
Alert: highest cash back card we've seen now has 0% intro APR until 2024
If you're using the wrong credit or debit card, it could be costing you serious money. Our expert loves this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.
In fact, this card is so good that our expert even uses it personally. Click here to read our full review for free and apply in just 2 minutes.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DoorDash, Inc. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
