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 Tuesday, September 17, 2024
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# Household Math: Sale or gas savings?

 Scott Bilker is the founder of DebtSmart.com and author of the best-selling books, Talk Your Way Out of Credit Card Debt, Credit Card and Debt Management, and How to be more Credit Card and Debt Smart. Receive the 5-Year Loan Spreadsheet when you subscribe to his email newsletter.

How much are you really saving to be there for that sale? This is a true situation at our house. My wife drives a Dodge Ram, it gets 12 mpg (miles per gallon). Gas in our area is \$2.45 per gallon. The mall is 18 miles each away. If she cuts back and only goes to the mall once a week, instead of twice a week, how much would she save in one year? (\$7.53, \$7.35, \$8.35, or \$382.20)

(Steve, DebtSmart Reader, submitted this question.)

Explanation:

The solution to this problem is very straightforward:

1) 18 miles each way means…

2) 36 total miles per week saved.

3) At 12 miles per gallon, it takes 3 gallons to travel 36 miles.

4) At \$2.45 per gallons, 3 gallons cost \$7.35 each week.

5) One year’s savings is 52 weeks of \$7.35 which is…

6) A total of \$382.20 save each year!

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