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Heat lost through uninsulated basement walls can account for up to 30% of the total energy lost through heat transfer to the outdoors. While homes in mild climates won't gain as much benefit from having an insulated basement as those in cold climates, the effects are still noticeable on your energy bill.

Through R-value assessments based on climate and existing insulation.

The primary reason that insulation saves you money over time is that it reduces your energy bills by making your home more energy efficient. A crucial part of an insulation system is a properly installed vapor barrier. Local building codes dictate whether your insulation requires a vapor barrier based on the type installed. While some high-quality wool insulation may not technically need a vapor barrier, most municipalities still require one to meet code.

Spreading tin foil over your windows works similarly to radiant barrier insulation, but not as well. It will reflect some of the sunlight that would otherwise come through the glass and warm up the inside of your home, so it might help a little to keep your home cool in the summer. However, the appearance isn’t preferable to blinds or drapes that can offer the same benefits. You might also consider tinting your windows instead, which is a more aesthetically pleasing change that can still block a good portion of the solar heat coming through your windows.