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This descriptive study used both quantitative and qualitative research methods to examine the food and nutrient intake, food purchasing patterns and budgeting strategies of 29 sole‐parent low‐income families with dependent children living in Corio Shire, Victoria, in 1989–90. Expenditure on food and nonalcoholic beverages when compared with the average for all Australian households showed that the study families allocated a greater proportion, but similar amounts of money to cereals, dairy products, fruit and vegetables and miscellaneous foods, and less to meat, nonalcoholic beverages and food eaten away from home. Despite large differences in the amount of money spent in the first and second weeks of a social security payment period, the nutrient density of the parents' diets was maintained at a similar level in both weeks. The only exception was vitamin C, for which the median intake was significantly lower in the second week, consistent with reduced purchases of fruit and vegetables in the same period. In interviews with 13 of the parents a variety of purchasing and budgeting strategies were described, indicating common concerns with making the most of their limited resources. The data from this study support the notion that low‐income families give priority to food purchases above other expenses such as recreation. They also support the view that low‐income families are concerned about health and nutrition and manage to consume nutritionally sound diets under difficult circumstances. Nutrition education programs could support them in this endeavour.

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