Dollar Store Dilemma: The Hidden Cost of Convenience in Underserved Communities

What's Really Going on With Dollar Stores?

When money is tight, dollar stores like Family Dollar and Dollar Tree seem like the perfect solution. Everything's cheap, right? As someone living in a community with more Dollar Stores than grocery stores, I used to think these stores were helping us save money.

But I've learned something important: what looks cheap at first might cost us more in the long run.

Looking Beyond the Price Tag

When we're just starting to manage our money better, we often focus on spending less today. But good financial literacy means thinking about:

• How today's choices affect tomorrow's finances

• The difference between price (what you pay now) and cost (what you pay over time)

• How our health and finances are connected

Let's look at what Dollar Stores really offer:

• Few fresh fruits and vegetables: Most dollar stores have little or no fresh produce

• Lots of packaged foods: Chips, cookies, and instant meals fill the shelves

• Smaller packages: Often, you pay more per ounce than at regular grocery stores

• Limited healthy options: Finding whole grains, lean proteins, and low-sugar options can be difficult

Money Fact: A box of cereal at the dollar store might cost $1, but it's usually smaller than the $3.50 box at the grocery store. When you calculate the price per ounce, the grocery store option is often cheaper!

The Limited Selection of Nutritious Food

As I visited my local dollar store, I came to a personal realization about the issue of unhealthy food choices. The overwhelming presence of processed foods in shoppers' carts caught my attention. Children were seen holding bags of chips and candy while their parents' carts were loaded with packaged ramen noodles and sugary cereals. The absence of fresh produce was clearly noticeable, highlighting the lack of nutritional value in the food choices made by the customers.

It was a devastating realization for me. I always believed that dollar stores benefited my community by providing affordable groceries to those in need. However, I now understand that their presence contributes to the problems they were supposed to solve.

See my feature in GoBankingRates How Walmart is Winning Over Millennial Grocery Shoppers

How Dollar Stores Affect Our Community's Money

When too many Dollar Stores move into a neighborhood, it changes our local economy in ways that hurt our wallets:

1. Fewer Good Grocery Stores

When Dollar Stores open, full grocery stores often close because they can't compete. This means:

• Fewer jobs with good pay and benefits in our neighborhood

• Less money from business taxes to support local schools and services

• More money spent on gas or bus fare to reach distant grocery stores

2. Higher Health Costs

Eating mostly processed foods can lead to health problems like diabetes, high blood pressure, and heart disease. For families in their 30s, 40s, and 50s, these health issues create serious money problems:

• More doctor visits and medications (higher co-pays and deductibles)

• Missed workdays due to illness (less income)

• Energy bills for people who don't feel well enough to be active

Money Fact: People who eat mostly processed foods spend about $1,500 more on healthcare each year compared to those who eat more fresh foods.

How To Find Healthy Food When You Live in a Food Desert

First Steps to Better Food and Better Finances

The presence of dollar stores in food deserts is not a solution to the problem of food insecurity; it is a symptom of a deeper issue. Instead of relying on these retailers to provide essential food supplies, communities need to focus on developing sustainable solutions that address the root causes of food deserts. You don't need to be a financial expert to start making smarter choices. Here are simple ways to begin:

Easy Personal Actions:

1. Compare unit prices: Look at the price per ounce or unit, not just the total price.

2. Start small with fresh foods: Even adding one fresh fruit or vegetable to your shopping is a good start.

3. Team up with friends or family: Share rides to grocery stores or split bulk purchases.

4. Try growing something: Even a $3 pot of herbs on your windowsill can save you money over time.

5. Plan meals: Making a shopping list helps avoid expensive impulse buys.

   
   

Simple Community Steps:

1. Supporting local farmers markets and community gardens to increase access to fresh produce.

2. Encourage grocery stores to operate in underserved areas: This can be through tax incentives or other forms of support.

3. Invest in public transportation: This improves access to grocery stores located outside of food deserts.

4. Attend community meetings: Ask local leaders about plans to improve food access.

The Connection Between Food and Finances

Understanding financial literacy isn't just about learning to budget or save; it's also about developing a comprehensive approach to managing your finances. It's also about understanding how everyday choices—such as where we shop for food—affect our financial well-being.

Dollar stores aren't all bad. They provide affordable access to many household items we need. But relying on them for most of our food shopping can hurt our health and our finances over time.

As you continue to learn about managing your money, remember that good financial decisions also include considering your health. Every dollar you spend on nutritious food today might save you many dollars in healthcare costs tomorrow.

What's one small step you could take this week to find more affordable, healthy food options? Every journey toward better financial health starts with a single step!

---

New to financial literacy? Sign up for our free newsletter with simple money tips and community resources for affordable, healthy living.