Research shows that prices can vary for all types of products; therefore it makes good sense to comparison shop before buying. Comparison shopping is especially beneficial when buying expensive items, items you purchase often, or items where the product quality or prices vary greatly. Through the use of advertisements, catalogs, telephone inquiries, or the Internet, comparison shopping is easy and can save you money.

For household goods and groceries, compare the unit price (such as the cost per ounce, pound or other unit of measurement that stores are required to post for every product). That’s the best way to compare cost, but there’s more to the equation than price. For example, by reading the labels of two cartoons of orange juice, you might find that the more expensive brand has 120% of the daily requirement of vitamin C, while the cheaper brand has no added vitamins. If nutrition is a consideration, the more expensive brand may be a better buy.

Buying large sizes can often save money. Usually, the unit price is less for larger containers, but not always. And before you buy in bulk, be sure you will actually use a bulk of the item. It can be a good idea to stock up on items you need when they are on sale. Again, just be sure you can use up what you buy before the expiration date arrives.

Look for generic brands or store brands of items where it really doesn’t make a difference. For example, some products have the same taste and texture, regardless of whether it’s a name brand or the store brand. The difference in price, however, can amount to as much as a 50 percent. Paper products, dairy products, and canned goods are also good examples of products that are practically identical, whether you buy generic or name brands.

If you use coupons, it is important to only use them for items you would ordinarily buy. Also, make sure you compare the price of a product including the discount with the coupon to the brand you normally buy or a generic brand. You might be surprised to find out that the name brand product is still more expensive, even with the coupon.

Do not assume that all supermarkets have the same prices. If you have a few chains in your area and you do not know which ones are least expensive, check them all out. Make a list of the ten or so products you buy most often, and do some comparison shopping. Often you will find a huge difference between chains, and, if you can save just five percent, it adds up to hundreds of dollars over the long run.

And try to limit or eliminate shopping at the corner convenience store for items that could be purchased less expensively on your weekly supermarket trips. Along those same lines, don’t assume that the grocery store is the best place to buy non-grocery items such as batteries and laundry detergent.

Comparison shopping is not just limited to products that you purchase. Research and compare companies that provide services, such as utilities, telephone, cable, and Internet. And don’t forget to research and compare companies, coverage, and costs for all forms of insurance.

This information came from one of MMI’s Journey to Financial Security series of programs. For more information about the series, visit CreditEducation.org.  

For more about comparison shopping, also read Be a smart Internet shopper and Jumping on the coupon bandwagon.

So, it seems everyone is talking about couponing these days. Maybe it’s that I’m getting older, that I love a good bargain or the fact that I work at Money Management International, but I’ve jumped on the coupon bandwagon….and I’M SOLD.

The first step to successful couponing is to overcome those mental barriers. You may have a few of your own:

-Mom always told me it was a waste of time. Mother is always right, right? Wrong. The key is organization and finding just a few extra minutes to dedicate to saving. Just because it didn’t work for someone else doesn’t mean it won’t work for you.

-Coupons are only for the really expensive items. Sometimes, but the trick is to find name brand items when they are on sale. Using a coupon on a sale item equals savings.

-I have ZERO extra time. I’m hardly an expert, so I probably don’t spend nearly the time clipping as a real master. I’ve found that the key is just starting and starting small. You’ll find your comfort zone once you start saving.

-I don’t quite get how price matching works. I discovered that you can save money even when you don’t have a coupon. Start by collecting store flyers each week. I have found that the best savings are for beef, chicken, and pork. Take the flyers with you and simply ask your store to match the lowest advertised price. Just last week I saved over $6.00 on the price per pound match on a sirloin steak.

Check out these results!

When you’ve looked yourself in the mirror and made a dedication to saving, here are a few pointers to get started:

1. Research.
There are so many online resources out there for coupon trading, coupon selling, coupon printing, coupon clipping and coupon organizing. A couple of my favorites are CouponMom.com and Couponizer.com.

2. Take it one week at a time.
Push yourself to do a little more each week. The first week, just focus on one store flyer. The second week, plan a menu around sale items. Change can be tough and overwhelming, so start small.

3. Plan and organize.
Set aside some time to clip coupons, make a list and plan your meals each week. Get an expandable file folder or a binder with business card inserts and create categories to file your coupons.

4. Find a store that matches prices and/or doubles or triples coupons.
Price matching is where I’ve saved. Add a coupon on top of the price match and that’s a real savings.

Stay tuned. Good luck and happy saving!

Do you have any tips or tricks? What kind of savings have you seen? Tell us about it!

In honor of Financial Literacy Month, we created a microsite that offers 30 simple steps to financial wellness–one for each day of the month. To enrich the experience, we asked some amazing people to guest post during the month on a topic that is related to the day’s step. Their dedication to financial literacy is truly inspiring! Today, Heidi from Little People Wealth talks about ways to save money on groceries.

When people look to decrease spending, generally the first things that come to mind are cable, phone, internet, shopping, eating out, etc. Groceries, although overlooked, is actually one of the easiest ways to decrease your monthly spending! Here are ten easy ways to decrease that grocery portion of your budget!

Stop paying for household items! First and foremost, you should keep the money designated for groceries going towards food. Household products, cleaning supplies, medications, and other non food essentials should not be bought at a grocery store. Walgreens, CVS, and Riteaid have store programs which allow you to get these products for free by combining the store programs with store and manufacturer coupons. Sometimes you will even make money when buying things you need! Once you have the drugstore game down then you can really focus on cutting your grocery expenses.

Use coupons! You can find coupons in your Sunday newspaper, online, and even electronic coupons on some grocery cards. There are now coupons for organics, milk, and bread. You do not need to live off of hamburger helper to save money using coupons.

Don’t be a brand snob! Buy the brand that saves the most money. Sometimes that is a store brand and sometimes it is a name brand with coupons and a sale. The key is to be open to trying different brands.

Don’t be a store snob either! Follow the ads of at least two different stores. Each store will have different sales and you will be able to take advantage of both.

Use a price book! Figure out what items you purchase most often and keep a price book (a book that shows you what the regular price of the item is at the stores you normally shop at). This book will help you determine if something is really a sale or if it is just an advertised regular price. It will also help you determine what store is best for the items you eat most often.

Stock up on deals! Each week a store puts out an ad with door busters, deals that are meant to get you in the store so you buy other items as well as the great deal items. When you see these great deals you can stock up. Buy enough to last you until the next time it goes on sale! Usually sales are on a rotation of about 6 weeks.

Eat less meat! Meat is usually the highest cost item in a grocery budget. Try to cut back on meat and you will save a ton. If you can’t cut back then look into local butcher shops where you can purchase meat by the slab and then put it in your freezer.

Plan a menu around the sale items and what you have at home! Many stores are helping out in this area by actually publishing recipes next to the sale items (in the online ads). Don’t let the food you have at home go bad because it is at the back of the pantry. Pull it out and use it!

Drink water! Soda is one of the worst budget (and diet) killers. If you cut it out you will feel healthier and your budget will thank you.

Grow your own! This one can be tough, but even if you don’t have much space you can grow some items. My yard is almost completely covered in shade and I do not have much time for a garden. Last year I planted one tomato plant (my favorite) and a few pots of herbs and lettuce. There is nothing better than a fresh salad! I spent less than 5 minutes a day with my “garden”. If you have more time then you can grow a larger garden and really reap the cost saving and health benefits. You could also look around for a co-op garden or farm in your area. Many places offer fruits and vegetables for free (or cheap) in exchange for working.

Use these grocery tips and you will see your savings grow!

Heidi writes for Little People Wealth, a money saving and deal finding blog that helps the average person save money using drugstore programs, coupons, and more!