A FLT INSTRUCTOR TAKES A TRAINEE FLYING IN A DA20 WITH LOW FUEL QUANTITY. FLT INSTRUCTOR LOSES TRACK OF FLT TIME RESULTING IN FURTHER LOW FUEL; RECEIVES A WARNING LIGHT; AND DECIDES TO USE THE REMAINING FUEL FOR AN OFF ARPT LNDG.

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FLT INSTRUCTING LESSON. WE LEFT AT XA00. THERE IS NO FUEL AVAILABLE THAT EARLY IN THE MORNING. ONLY HAD A 1/4 TANK OF GAS. BASED ON PRIOR EXPERIENCE I FIGURED WE'D BE ABLE TO DO THE LESSON NO PROB ON THAT FUEL. NOW RECONSIDERING I REALIZE THE ERROR IN THIS (1/4 TANK EQUALS 5 GALS/FUEL BURN 6 GPH). I ASSUMED FLT WOULD BE LESS THAN 1 HR. WE THEN GOT DISTRACTED WITH OTHER EVENTS AND THE FLT RAN LONG. THE ENG BEGAN TO SPUTTER (THE FUEL WARNING LIGHT CAME ON 10 SECONDS BEFORE THIS). I LANDED ON A ROAD THAT I KNEW HAD LIGHT TFC. NO ONE WAS HURT; NO PROPERTY NOR PLAnE WAS DAMAGED. CORRECTIVE ACTIONS: I RAN THOUGH ALL THE EMER PROCS TAUGHT TO ME. THE FUEL GAUGE STILL READ AN 1/8 OF A TANK WHEN WE LANDED. THE FUEL WARNING LIGHT IS NOT AS USEFUL AS IT COULD BE SINCE IT PROVIDED YOU WITH LIMITED WARNING. ALSO IN HINDSIGHT I HAD REQUESTED IFR CLRNC FOR THE ACFT WHICH WAS NOT IFR EQUIPPED (I FORGOT THIS FACT AT THE TIME). WE DID NOT GO IN ANY CLOUDS. THIS PROB WAS PURELY A FACTOR OF ME BEING TOO COMFORTABLE. I SHOULD HAVE REALIZED THE STUPIDITY OF TAKING OFF WITH SUCH LIMITED FUEL EVEN THOUGH WE WERE ONLY GOING ON A SHORT FLT. I SHOULD HAVE ALSO REALIZED WE WERE IN THE AIR FOR 1 HR AND NOT TRUST THE GAUGE. (I SAW WE HAD AN 1/8 LEFT AND FIGURED WE HAD BEEN IN THE AIR FOR 1 HR SO WE STILL HAD 1 HR LEFT.)