Dan earns $42.75 per month working as a tutor. He worked as a tutor for 4 months. He also earned $52.45 walking dogs in the neighborhood. He spent $18.50 of his total earning to buy a movie ticket and candy. Dan put 1 over 3 of the remaining money in his savings account. Dan used the following steps to find the total money he put in his savings account:

Step 1: [($42.75 ⋅ 4) + $52.45 − $18.50] ⋅ 1 over 3

Step 2: [$171 + $52.45 − $18.50] ⋅ 1 over 3

Step 3: 241.95 ⋅ 1 over 3

Step 4: $80.65

In which step did Dan first make an error? Use words to explain how Dan can correct his error.