Reducing food waste is good for your budget and the planet

We waste a lot of food. According to the U.N., over a billion tons of it are wasted each year globally, most of it from households. Not only does wasting all this food cost the average American family $1,200 a year, but it's a significant source of greenhouse gas emissions.

The EPA says food waste in the U.S. is equivalent to the greenhouse gas emissions of more than 50 million passenger cars and is responsible for 58% of methane emissions from municipal landfills.

Methane is a particularly potent greenhouse gas because it traps more heat in the atmosphere than carbon dioxide. The U.N. Environment Programme says methane is "responsible for more than 35 percent of the global warming we are experiencing today."

How does our food waste become methane?

Landfills act like big diaper linings on the ground, so nothing we throw away decomposes into the soil. There's a barrier preventing it. Our food waste gets sandwiched between all the plastic, metal and non-organic trash, and without oxygen, it mummifies and releases methane. So, every time we throw away leftover food, we create methane and speed up climate change.

There are, however, ways to curb food waste at home. Composting can turn leftovers into fertilizer for your plants and homegrown produce. If you don't have a garden, you can use a product like the Mill Kitchen Bin to turn your food waste into clean, dry grounds that don't smell. Those grounds can then be used as part of the composting process at home or given to a local community garden or farm.

The Too Good To Go app is another way of keeping food out of landfills. The service allows people to purchase surprise bags of surplus food from nearby restaurants, bakeries and grocery stores, preventing perfectly edible items from being thrown away. The bags, priced between $5 and $10, are packed with various items that are still good to eat but would have been thrown away.

Understanding food labels can also significantly reduce your waste. The often confusing terms "use by," "best by," and "expiration dates" sound similar but mean different things.

A "use by date" is the last date recommended for eating a product while it's still at its peak quality. After this date, the food might still be safe, but the quality may decline. For perishable items like dairy or meats, it's often best to follow this date closely, but use your nose and eyes to help determine whether it's still good.

"Best by" or "best before" dates are about the product's quality, not safety. It indicates when the food will be at its best flavor or texture. After this date, the food is usually still safe to eat, but it might not taste as good or have the same texture. Often, you won't even notice a difference.

"Expiration dates" are dates found on products where safety is a concern, like baby formula or certain medications. After this date, the product should not be consumed, as it may not be safe or effective.

This story is part of our Climate Ready series - a collaboration between ABC News and the ABC Owned Television Stations focused on providing practical solutions to help you and your family adapt to extreme weather events and the current challenges of climate change.