$2000 for food and groceries is rather high it seems
this is on top of your own $1000 which you said is for food and misc
When means the $2000 you wife spends on food and groceries doesn't include your food
Is it because you guys eat out at restaurants very often?
I used to do that and it pushed up my food expenses by a lot. So now we make an effort to cook simple meals but use very high quality ingredients, which end up still being cheaper than eating out in restaurants, and also much healthier as we can decide how much oil and salt we put it.
Eating out for a small family at normal restaurants costs at least $50 per meal. Even if just for sat and sun lunch and dinner, that's at least $800 per month already.

Rest of the expenses are somewhat reasonable. Car maybe luxury but if it's within budget and gives some pleasure in daily life I don't see why not.