SunDrop - Since you have young kids, are you including things like diapers or baby food in your grocery bill? Those two things alone can really add up!
Even though I have the option of a commissary, sometimes it's just too much trouble 'cause it's a 45 minute drive. Here are some suggestions that might help you...
1. Always shop with a grocery list and don't deviate from it at all. This is good for weight loss, too, as cookies won't magically appear in your basket this way.
2. Even if you're shopping with a grocery list, never shop when you're hungry. Everything looks good when you're hungry!
3. When my kids were little, I used to make hubby watch them while I went grocery shopping. I didn't cave to the little kid sort of things they always wanted if they weren't with me. (Although my son used to holler "geen beens! geen beens! get geen beans, mommy!" on the canned veggie aisle.)
4. Try to stay away from convenience foods - especially those pre-packaged frozen family dinners. They're really expensive; you could usually make twice as much for less from scratch. They're horrible for you anyway - loaded with sodium!
5. If having time to cook is an issue, invest in a pressure cooker and a good crock-pot (one where you can take the pot part out of the warmer part). A frozen-solid 4 lb. roast will cook in a pressure cooker in under 2 hours. For crockpot meals, you can toss it all in the crock the night before, refrigerate it, then toss it in the crock cooker part and turn it on before you leave for work. When you come home, all you have to do is make a salad and dinner's done.
6. Buy the cheaper store brands whenever possible. There are very few foods I've found where the store brand is not as good as the national brand, and there are even some things that are better than the national brand! The Kroger stores in our area even have a store-brand guarantee: If you try the store brand and don't like it as much as the national brand, you can return it and they will either refund the price or exchange it for the national brand. Look in your area and see if any grocery stores have the same.
Some people swear by coupons, but I find them to be way too much work. Also, I can usually buy store brands cheaper.
Hope it helps - let us know!