One of the very first questions I get asked when people find out I’ve been travelling around Latin America is: “But how much does it actually cost?” And I get it. The internet is full of blog posts that either make it sound like you can survive on £10 a day or that it’s impossibly expensive. The truth is somewhere in the middle, and it really depends on where you go and how you travel.

I’ve now spent the better part of a year travelling through Latin America, including Mexico, Colombia, Peru, Bolivia, Argentina, Chile, and the majority of Central America, and I’ve learned a lot about budgeting for a trip to Latin America the hard way. This guide is everything I wish I’d known before I went.

Who is this guide for? First-time visitors to Latin America, backpackers planning a multi-country trip, and anyone trying to get a realistic handle on costs before they go.

How Much Does It Cost? Budgeting for a Trip to Latin America

The honest answer is: it depends enormously on which countries you’re visiting. Latin America is not one destination. It’s a patchwork of wildly different economies, and your daily spend in Bolivia will look nothing like your daily spend in Chile, for example.

As a rough guide:

• Budget travel (hostel dorms, local transport, street food, the odd supermarket meal): $40–50/day
• Mid-range (private rooms, some organised tours, eating out most meals): $60–100/day
• Comfortable travel (nice hotels, regular tours, all meals in restaurants): $120+/day

The cheapest countries are generally Guatemala, Honduras, Nicaragua, Colombia, Ecuador, and Bolivia. You can genuinely eat a full hot lunch in Bolivia for under $2 and sleep in a comfortable hostel for $6–10 a night. If you’re planning to spend a lot of time there, take a look at my guide to the cost of living in Bolivia for a proper breakdown. At the other end of the scale, Chile and Brazil are noticeably pricier, more comparable to Southern Europe in some areas, and Argentina is an interesting case of its own (more on that below).

Argentina deserves a special mention because the situation there has changed significantly in recent years. When Javier Milei was elected, the exchange rate shifted dramatically almost overnight. I arrived in Buenos Aires just days after the election results, and my budget plans needed adjusting by morning. Argentina is still a relatively affordable destination, but it’s no longer the budget-traveller’s paradise it once was.

Accommodation: What to Expect When Budgeting for a Trip to Latin America

Accommodation is likely to be one of your biggest daily costs, but there’s a huge range of options depending on your travel style.

Hostel dorms are the classic backpacker choice and can be astonishingly good value. Think $7–18 per night in most countries, with some places in Bolivia and Colombia at the cheaper end of that. Private rooms in hostels typically run $18–36, while budget hotels vary hugely by country.

One of the best tricks I used throughout my trip was taking overnight buses between cities. Not only does this save you a full day’s travel time, but it also means you skip a night’s accommodation entirely. On a long-haul route (say, from Cali to Medellín), that’s a night’s hostel bed you’re not paying for. It adds up significantly over a longer trip.

Airbnb and longer-stay apartments can also be great value if you’re staying in one place for a week or more. Many places offer discounts for extended stays, which is worth negotiating directly with the host, even if they don’t advertise discounts. Just keep in mind that in peak season, which is generally December to March, and especially in places like Patagonia, prices spike considerably. Accommodation in Patagonia during the summer months can be two or three times what you’d pay at other times of year, and places book up months in advance.

Transport Costs: Buses, Flights and Getting Around

Long-distance overnight buses became my absolute best friends whilst travelling in Latin America. They’re cheap, they’re (usually) comfortable, and if you spring for a cama or cama ejecutivo seat, which fully reclines, you can actually get a decent night’s sleep. The price difference between a standard seat and a cama is often only a few dollars, and it is absolutely worth it for a 10+ hour journey.

I travelled through South America almost entirely by long-distance bus, which is a great way to see the country and keep costs down (although, internal flights are becoming more and more affordable these days). For Peru, I tried both Peru Hop (the hop-on-hop-off tourist bus) and regular public buses, and both have their merits. Peru Hop is more expensive, but it includes some tours and massively takes the stress out of navigating bus stations if you’re newer to this style of travel. Public buses are cheaper and give you a more authentic experience, but you do need to be comfortable figuring things out as you go. Read more about the cost of living in Peru here.

You can buy bus tickets at the station, or use platforms like BusBud to book in advance online, which is particularly useful during high season when buses fill up fast.

For some destinations, you’ll need to factor in domestic flights. Accessing the Amazon, for example, often requires a flight, and the distances in Brazil or Argentina can be so enormous that flying makes more sense time-wise. Uber operates in most major Latin American cities and is generally cheaper and safer than hailing a random taxi off the street.

Food and Eating Out on a Latin America Budget

This is where travelling Latin America can genuinely be incredible value. Street food and local markets are almost universally cheap, delicious, and an essential part of the experience.

Most countries have local equivalent of a set lunch: it’s called a comedor in Bolivia and Peru, a soda in Costa Rica, and a fonda in Colombia and Mexico. For $2–5, you’ll typically get a soup, a main course, a drink, and sometimes dessert, too. These are where locals eat, and they are some of the best meals I had on the entire trip.

Street food is another story: anticuchos in Peru, arepas in Colombia, empanadas everywhere. You can eat incredibly well for next to nothing if you follow your nose and go where the locals are queuing.

Where costs usually spike is on imported goods. If you’re craving something from home (certain cheeses, wine that isn’t local, branded snacks), you’ll pay a lot more. Stick to local produce and you’ll be absolutely fine. Hostel kitchens are also a great way to save money; in the more expensive countries like Costa Rica, Chile, and Argentina, you’ll find it’s very common for people to cook many of their meals in hostels.

Activities, Tours and Entrance Fees

This is the one area of the budget that catches people off guard most often, and it’s important to plan ahead for it.

Some of Latin America’s biggest attractions come with significant entrance fees. Machu Picchu, for example, costs upwards of US$45 per person for the site alone, and considerably more if you want to spend a few days hiking there on the Inca Trail or the Salkantay Trek. You can read more about this in my cost of living in Peru guide, which breaks down what to expect across the whole country when it comes to activities and tours. National parks across the region also charge entrance fees that can vary from a few dollars to quite a lot. In Patagonia, some parks charge US$30 or more per day; my cost of living in Chile guide covers this in more detail.

On the flip side, many of the best experiences in Latin America are completely free. Hiking, exploring colonial cities on foot, visiting local markets, and just wandering around; a lot of what makes this region so special costs nothing at all. If you want to do South America on a budget you absolutely can; whatever you miss on the big attractions, you’ll make up for dancing salsa in the street, partying with the locals, hiking completely free trails, and tasting the local cuisine.

Managing Money and Currencies in Latin America

Every country in Latin America has its own currency, and each one operates slightly differently. This is one of the most important things to plan for before you go.

ATM fees can be brutal. In Panama, every cash machine charges at least US$6 per withdrawal, with a US$250 limit for foreign cards. When I was preparing for the San Blas boat trip to Colombia, just about everyone staying in our hostel descended on the local cash machines to clear them out, because tours, boat trips, and excursions all require cash in advance. You can find out more in this guide to money and currencies in Central America, which covers Panama and its neighbours in detail.

When I arrived in Colombia on the boat from Panama, I was in the middle of nowhere in the jungle and I had no local currency whatsoever. When I desperately needed a bin bag to sort out my gear, I ended up offering someone a dollar for it, and some snooty American woman next to me laughed. A dollar goes a surprisingly long way in Colombia, and it’s not common to pay in USD. But hey, it’s all I had! Click here for the cost of living in Colombia guide.

Inside-the-bank ATMs tend to have lower fees than standalone cash machines, and it’s always worth asking at your hostel which ATMs they recommend for foreign cards. Some banks, like ScotiaBank and BCP in Peru, don’t charge foreign withdrawal fees at all, and plenty of places in Costa Rica offered cash withdrawals for free (not all of them, though). The situation is different in every country; the best thing you can do is ask at the reception desk of your accommodation to make sure you’re not getting ripped off.

Bolivia is extremely cash-heavy, and card acceptance is much more limited than the surrounding countries. Go armed with local currency, especially before you venture far from a city. Read more about the local currency and cost of living in Bolivia here.

The US dollar is accepted informally in many countries across South America and I always recommend carrying some as a backup, but you cannot rely on it as your primary currency in most places.

Hidden Costs You Might Not Think to Budget For

A few things that I genuinely didn’t budget for properly on my first ever backpacking trip, and that I’d now flag for anyone heading out:

Travel insurance

Travel insurance is non-negotiable. Make sure your policy covers adventure activities (trekking, water sports, zip-lining, all the things you’ll inevitably end up doing), and check the maximum trip length. Many standard policies only cover trips up to 30 days.

SIM cards and eSIMs

SIM cards and eSIMs are worth budgeting for rather than relying on hostel wifi. Local SIMs are cheaper and often more reliable than eSIMs, but the great benefit of an eSIM is that you can buy it before you even arrive in the country. I personally use a combination of the two; I have a global eSIM with Revolut Ultra that I always have activated and ready to go when I need it, but when reasonable, I buy a local SIM card to save on data. Having internet access means you can use essentials like Uber (way safer than local taxis), use Google Maps, and contact your accommodation, friends, or anyone else that you might need.

Border crossing and exit fees

Border crossing and exit fees exist in most countries, but they are factored into plane tickets which is why you don’t usually notice them. If you’re crossing land borders, you generally have to pay them separately as they won’t be included in your ticket. Some countries also require a visa, or an onward ticket before they’ll let you in, so check the requirements for each country well in advance.

Peak season price spikes

Peak season price spikes affect more than just accommodation. If you’re visiting Patagonia in December and January, or heading to Peru during Inti Raymi, budget significantly more than you would at other times of year.

FAQs about Budgeting for Latin America

Is Latin America cheap to travel?

It can be, but it really depends on which countries you’re visiting and how you travel. Bolivia, Colombia, and Ecuador are genuinely very cheap for budget travellers, with daily costs of $40-50 entirely achievable. Chile, Brazil, and to a lesser extent Argentina are noticeably more expensive. The good news is that even the pricier countries in the region are generally cheaper than Western Europe or North America.

How much should I budget per day in Latin America?

As a rough guide: $40-50/day for budget travel (hostels, local transport, street food), $60–100/day for mid-range, and $120+/day if you want comfort and convenience. Major activities and entrance fees, like Machu Picchu, need to be budgeted separately on top of your daily spend.

Which Latin American countries are the cheapest?

Bolivia is consistently the cheapest, followed closely by Colombia and Ecuador. Nicaragua and Guatemala are also excellent value. The most expensive countries for travellers are generally Chile, Brazil, and (depending on timing) Argentina.

Should I use cash or card in Latin America?

Both, but lean heavily towards cash. Card acceptance varies enormously by country and even by business. Bolivia in particular is very cash-heavy. Many tours, taxis, and local restaurants only accept cash. Always keep a stash of local currency on you, and carry some US dollars as a backup. Withdraw larger amounts less frequently to minimise ATM fees.

Do I need travel insurance for Latin America?

Absolutely yes. Make sure your policy covers the activities you’re planning. Many standard policies exclude trekking above certain altitudes or water sports. Also double-check the trip length your policy covers, as some cap out at 30 days, and check whether medical evacuation is included.

How do I avoid high ATM fees in Latin America?

Use in-branch ATMs rather than standalone machines where possible, as they often charge less. In Peru, ScotiaBank and BCP are known for not charging foreign withdrawal fees. Withdraw larger amounts less frequently rather than small amounts regularly. Ask at your hostel which ATMs they recommend. A Wise or Revolut card can also help reduce fees overall.

Is it safe to travel Latin America on a budget?

Yes. Millions of budget travellers do it every year, and budget travel doesn’t have to mean unsafe travel. Staying in reputable hostels, using Uber rather than random taxis at night, not flashing expensive gear, and doing your research on each city before you arrive goes a long way. The main safety considerations are the same whether you’re travelling on $38 or $300 a day.

Conclusion

Budgeting for a trip to Latin America doesn’t have to be stressful. It just takes a bit of planning and a willingness to be flexible. The region spans everything from some of the cheapest countries in the world to destinations that rival Europe in cost, and understanding that before you go makes all the difference.

My biggest piece of advice? Don’t underestimate the big-ticket costs (entrance fees, flights, travel insurance), lean into the things that make Latin America so wonderful to travel on a budget (street food, overnight buses, local markets), and always, always have cash on you. The rest has a funny way of working itself out.