How are the people making 65k as a household (median income per household in my state) managing this? I don't even understand how 2.5k$ grocery per month is possible. We are 3 in our households (young kid) and probably spending closer to 1k$ per month groceries and eating super healthy/organic.

Keep in mind we have 5 in our household to your 3.

They probably eat cheaper food? We do a lot of fruits and veggies. But not organic. Eating out is too expensive, we don't do that.

Also, I live in Southern California, it might be cheaper where you are.

yeah, being 5 is a big difference. We usually end up going to Costco once a week for ~250$/trip

Tell me you have teenage boys without telling me you have teenage boys ;)