Being water smart is as good for your wallet as it is for the environment. To save money, switch to showers rather than baths; a five-minute shower uses half the hot water that a bath uses. For even more savings, install aerators to shower heads and faucets. An aerator saves you money by mixing air into the water leaving the faucet to reduce water consumption. Adding an aerator to every faucet in the house reduces an average household's water consumption by 700 gallons per year, for a savings of $48 per month.