You might be throwing away hundreds of dollars a year without realizing it. A big part of the reason is a small line of print on the package that most people read the wrong way. Here is what the three common food date labels actually mean, and how understanding them can keep more of your grocery money in your pocket.
Americans Waste Hundreds a Year Because of This Label
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Best By, Sell By, Use By: How Food Date Labels Cost You Money
According to the EPA, the average American loses about $728 a year on food that gets bought and never eaten.
For a family of four, that adds up to almost $3,000 a year. That is real money spent at the checkout and then carried out to the trash can.
Some of that waste is leftovers nobody finishes or produce that sits too long. But a surprising share comes from something simpler: the dates printed on food packages are easy to misunderstand.
The Yogurt Test
Say you open the fridge and find a yogurt that reads “Best if used by September 1.” Today is September 2.
Would you eat it, or would you see the date and toss it because it looks expired?
Many people throw it out. But that date usually does not mean the yogurt went bad overnight. It is a quality estimate, not a safety deadline. If the yogurt was kept cold and looks and smells normal, the date alone is not a reason to throw it away.
Label 1: Best If Used By
“Best if used by” usually means the manufacturer thinks the food will have its best flavor or quality before that date.
It does not automatically mean the food becomes unsafe the next day. Crackers may be a little less crisp, cereal a little less crunchy, or a sauce a little less bright. That is a quality change, not a health warning.
This is the label most worth rethinking, because it appears on so many pantry and refrigerated items that households throw out on schedule.
Label 2: Sell By
“Sell by” really is not meant for you. It is mainly for the store.
It tells the grocer how long to display the product and when to rotate inventory so older stock moves first. It is not an expiration date.
Many foods remain good for some time after their sell-by date when stored properly at home. Treating a sell-by date as the last day you can eat something is one of the most common and expensive mistakes shoppers make.
Label 3: Use By
“Use by” usually means the manufacturer is estimating the last date the product will be at its best quality.
The big exception is infant formula. On infant formula, the use-by date really does matter, because nutrients can break down and the formula may not deliver what a baby needs after that date. Do not use formula past its use-by date.
Why This Matters for Your Budget
Throwing food away too early means throwing money away too.
The FDA estimates that confusion over food date labels accounts for about 20 percent of consumer food waste. Apply that to the EPA’s figure and it works out to roughly $145 a person, or close to $600 for a family of four, lost to misreading a label rather than to food actually spoiling.
That estimate is rough, and every household is different. But it shows why a few seconds of label reading is worth more than it looks, especially when groceries and everyday costs are this high.
Meal Prep Starts With the Food You Already Bought
Budget grocery hauls and cheap meal prep ideas are popular for a reason. People are looking for places to save a little.
But you can learn to make a $5 dinner or stretch groceries for a whole week and still lose money if food you already paid for ends up in the trash unnecessarily. The waste happens before the meal plan even begins.
A few habits help:
- Put newer groceries behind older ones so the older items get used first.
- Check the fridge before you shop, and build the week’s meals around what needs using.
- Freeze bread, meat, and leftovers you will not finish in time.
- Keep the refrigerator at 40°F or below so food lasts as long as it should.
For more ways to keep your food spending under control, see simple ways to cut your grocery bill and our guide to grocery budgeting.
This Does Not Mean Ignoring Food Safety
Understanding date labels is not the same as ignoring food safety.
Food still needs to be stored properly. If something smells wrong, looks spoiled, has mold, or you have reason to think it was not handled safely, do not take the risk. Your senses and your storage habits matter more than the printed date on most foods.
The goal is simply to stop throwing away good food out of confusion, not to eat food that has actually gone bad.
What This Means for You
Before you toss something because of the date, ask which label it carries.
“Sell by” is for the store. “Best if used by” is about quality. “Use by” is usually about quality too, except on infant formula. Then check how the food was stored and what it looks and smells like.
That quick habit can cut your food waste and keep more of your grocery budget working for you.
Frequently Asked Questions
Is food unsafe after the best-by date?
Not automatically. “Best if used by” is the manufacturer’s estimate of peak flavor or quality. Food that was stored properly and looks and smells normal is often still fine after that date.
What does sell by mean on food?
It is mainly a guide for the store, telling it how long to display a product and when to rotate stock. It is not an expiration date for shoppers.
Is a use-by date the same as an expiration date?
Usually not. For most foods it is still a quality estimate. The major exception is infant formula, where you should not use the product after the use-by date.
How much money does the average household waste on food?
The EPA puts it at about $728 a person each year, which is almost $3,000 for a family of four.
How much food waste comes from date label confusion?
The FDA estimates that confusion over date labels accounts for about 20 percent of consumer food waste.
When should I throw food away regardless of the date?
If it smells off, looks spoiled or moldy, was left out too long, or you have any reason to think it was not handled safely, throw it out. When in doubt, do not take the risk.
Key Takeaway
Most food date labels describe quality, not safety. Learning the difference between best if used by, sell by, and use by can keep good food out of the trash and hundreds of dollars in your budget each year.
Money Instructor provides educational information only and does not offer food safety, medical, or financial advice. Food waste figures are published estimates and individual results vary. Always follow official food safety guidance from the USDA and FDA, store food properly, and discard any food you believe may be unsafe.
