Here is all you need to know about travelling on a budget and keeping your vacation cost as minimal as possible without compromising the safety and fun of travelling the world.
Is exploring the world a dream of yours? Are there dozens of spots you’re just waiting to cross off your bucket list? For many teens and young adults, these dreams not only exist but are throbbing with passion.
That said, there are a few notable obstacles that can impede a young adult’s ability to travel freely, one of which is money.
As you’re well aware, travelling the world entails cash—and quite a lot of it. From buying transportation fares to paying for accommodations, there are many expenses associated with travelling.
Unless your parents are filthy rich and willing to shoulder the entirety of your travel expenses, you need to do a lot of saving and budgeting beforehand to see your travel dreams become reality.
Need more structured and actionable tips? We got you! This article will provide some financial tips to help youth travel sustainably on a budget without compromising the fun and adventure.
Let’s jump right in!
1. Make an Itinerary That Fits Your Budget
As a young adult, you probably don’t have a lot of money to spend on travel. You’re likely working with a small accumulation of allowances, income from part-time earnings, and other marginal income sources.
Having said that, it’s important that you keep your itinerary’s overall costs low. Don’t allot money and time for activities that are well beyond your budget range. Instead, fill your travel itinerary with fun and free alternative activities.
Most travel destinations have places that you can spend a lot of time in at little to no cost. For instance, museums, monuments, parks, and beaches are often free in most cities and countries. Take advantage of these places and immerse yourself in them instead of hopping on a paid tour.
Depending on your budget, you can splurge for a nice activity like a massage or a souvenir haul. Just be sure to know your budget range beforehand and stick to it. This way, you won’t return home with a drained bank account and will still have enough to sustain your living post-travels.
Struggling to stay consistent with your saving habits? This article about helping teens manage their money can help.
2. Create a Travel Fund
Before you start planning your travels, it’s a good idea to set up a travel fund in your bank account. This fund should be separate from your income and emergency fund to prevent you from mishandling your finances.
You can regularly deposit your income or allowance into the travel fund. The amount you choose to deposit regularly is up to you, but generally, 5% to 10% of your monthly allowance or income is good to set aside for your travel fund.
This travel fund can also be automatically set up by your bank to accept a percentage of your monthly income. This makes you more disciplined and on track to save for the upcoming travel.
Having a travel fund helps you more likely to reach your money milestones. This, in turn, can help you maximize your time on holiday while granting you peace of mind knowing that your finances will be at healthy and stable levels by the end of the trip.
3. Find Affordable Accommodations and Meals
Another money tip when travelling is to find affordable alternatives to your typical housing and dining options.
For instance, you can choose to stay in a hostel or a budget hotel to trim costs. If you don’t mind sleeping in a tent or a car, you can even rent a spot in a campsite for a low cost.
These accommodation options are far cheaper than most hotel chains, although they’re not as packed in terms of amenities.
By staying in these places, you can retain more of your capital, especially if your holiday is in high-cost-of-living areas. That said, be sure not to compromise on safety when picking a place to sleep in, as losing your valuables can be more expensive in the long run.
In addition to your hotel choice, you should also opt for cheaper dining options. Many restaurants on touristy roads have a huge markup, and this can add up over time.
Be sure to ask locals about where to find cheap food and follow through with them. Alternatively, look through Google Reviews or Yelp to find affordable restaurants and eateries. This way, you can save more cash while still receiving an authentic dining experience in your travel destination.
4. Use Public Transportation (or Walk)
Almost everywhere in the world, taxis and tour vans are universally the most expensive public transportation options around.
The convenience of these modes of transport is unmatched, sure, but they can be as much as four to five times more expensive than the next cheaper alternative.
Instead of opting for taxis and rideshare vehicles, consider riding buses and trains instead. It may take longer to reach your destination, but the cost savings you can achieve are not to be dismissed. Consider buying a travel pass wherever available and necessary.
If your intended destination is less than two kilometres away from where you currently are, and if the weather conditions are favourable, then consider walking to that destination instead.
Not only does walking save you more money, but you’ll also get to intimately explore more of the sights and scents of your travel destination on foot. This, in turn, can give you a more culturally immersive experience.
5. Go on Free Walking Tours
Speaking of walking on foot, did you know that you can request locals to tour you around the city on foot for free?
It’s true—there are many free walking tours that you can find online that connect you with enthusiastic and knowledgeable locals excited to tell you more about the place they call home.
This experience is a great way to gain more insights into the place you’re visiting. The best part, of course, is that it’s free. You’re not expected to pay a base rate for the service; however, it’s highly recommended that you give your guide a tip at the end of the tour.
So if you have a free day, consider booking a free walking tour online. This can be a great way to explore the city and spend half a day in a new area. Plus, you can ask all your burning questions to a bona fide local as well!
6. Travel During Off-Peak Season
If you have the freedom to choose when you’re travelling, then choose the off-season months. For places like Australia, these are the shoulder months when school is in full session, particularly March, April, September, October, and November.
Travelling during the height of summer break or the winter holiday can expose you to inflated prices—both in airfare and accommodation.
On the other hand, when choosing to travel during the off-season, the lowered demand keeps prices low, which can make it easier for you to score better prices or even discounted rates for hotel rooms and the like.
7. Pack Light
Another way to save money when travelling is by packing light. Packing light may seem difficult if you haven’t done so before, but it’s more than possible with the right techniques and proper attitude.
By packing light and using a sole backpack as a carry-on, you’ll be spending a whopping total of zero dollars on excess baggage. This can save you about $120 for a standard round-trip ticket, which is no small number.
The elimination of the excess baggage fee isn’t all there is to it. Packing light also forces you to be mindful of your purchases. You’ll be forced not to spend on random clothes, trinkets, and souvenirs as you won’t have space or weight allowance to carry them.
This can keep your running costs low for the trip and even after it if you continue to resonate with the concept of minimalism.
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