my grocery budget and family size is close to the same. What I have found is that we cannot have many processed convenience foods. I stick to fresh fruit and veggies, meats on sales, eggs and butter. Cheese is also pretty expensive so we get it sparingly.

A few other things that I do to help --

We do not buy bottled water. We can drink it from the tap, we do have a filter pitcher and my kids both have water bottles they can take to school or sports.

Coupons - At my work we all bring in our leftover coupons. I spent about an hour a week clipping coupons, matching to sales and trying to get good deals. I am by no means an extreme couponer, but I have saved nearly $600 this year with my coupons. This also forces me to look at what is on sale at my favorite store. Nearly everything I buy is on sale or I have a coupon or both.

Stock up when things are on sale - If the store has a really good deal, I stock up. I bought uncle ben's brown rice when my store had it 10 for 10... we had rice for months. I bought canned green beans and peas on sale

Cook in advance - Since we don't have many processed foods, I have to have things that are ready to grab and go -- so I will use my crockpot to make some soup or beans on the weekend that we can grab in a pinch during the week. I also cut up fruits and veggies and have those on hand in the refrigerator. I use this pre-made stuff to bring as my lunches for work during the week.

Don't skimp on the indulgences.. We are only going to enjoy Heinz Ketcup and my 9-year old loves lays wavy potato chips (no other brand). So we buy those.. Not the healthiest options but since we do have a few of the kids indulgences no one feels cheated by the budget.

I hope some of it helps.