Are you dreaming of an amazing bucket list trip to South America? Of course, you are! Who wouldn’t want to dive into the rich culture, eat unbelievable food, or explore the different cities? Plus, where else can you trek the world’s driest desert, then walk amid beautiful tropical rainforests, and wrap it up by exploring the ancient civilizations of the Incas? But for a Continent with 12 amazing yet unique countries, is it easy to travel South America on a Budget?

The answer is YES!

Now, don’t get us wrong, there is no guaranteed blanket strategy that will cover all 12 of the countries in South America. For example, Peru, Ecuador, Venezuela, and Bolivia tend to be quite easy on a travel budget. While traveling to Argentina, Brazil or Chile might require you to focus a bit better on your budget. Either way, we have found that using these 10 money-saving tips are best for anyone traveling South America on a Budget!

#1 Manage your money wisely

Whenever you ask a travel “pro” for their best piece of advice on how to budget for travel, they are probably going to mention avoiding fees! Perhaps the horrible exchange rate fees at the airport are the easiest to avoid if you know they are outrageous. But the one that often gets us is the painful ATM fees every time you make a cash withdrawal. These tend to be the costliest as you can sometimes get hit with 3 separate fees:

1. The Foreign ATM transaction fee from the machine you are using.
2. The Exchange Rate transaction fee from your own bank.
3. The Foreign ATM transaction fee from your own bank. (We hate this one the MOST!)

Don’t get us wrong, we understand that some fees are unavoidable. But there is no reason to lose money because your bank isn’t travel friendly.

To prevent this extra cost, look into banks that offer no international fees on purchases or withdrawals.  We have also found that some of the best Credit Unions and Banks that will even refund any ATM fees that you acquire in South America. So do your research and find that perfect travel-friendly Bank Account for traveling South America on a Budget.

#2 Find better flights to budget travel in South America

There is no doubt that round trip flights to any of the 12 countries in South America can often be one of your biggest expenses. That is why it is key to research and use the right tools to find cheap flights before booking your plane tickets. For us, when we booked flights to Peru or Colombia, we found great prices on flights at Kiwi that saved us a lot of money for food and fun!

However, just using the right search tool isn’t the only factor to save money while traveling in South America. Remember to be flexible on what days you fly and if possible, try booking early. We have often seen that about 7 weeks or 54 days prior to your trip tends to be the lowest price. But if you see a great deal from the Dollar Flight Club or other notification services that help you save money don’t be afraid to snag it right away.

#3 Consider traveling South America during the Off-Season

For those of you who know Eric, you know he loves to travel in the off-season. This is because he hates the cold and is often trying to chase 365 days of summer and sun around the globe. That is why traveling during the off-season or shoulder season to South America is great. Since their warmer months are the opposite of those who live in the northern hemisphere, you can collect all the Vitamin D you need.

But traveling to South America during the off-season also offers other benefits. For one, you can often find better deals on flights and accommodations since there is more supply and less demand. Also, there are fewer people everywhere. So now you don’t have to fight a horde of people to take that perfect shot at Machu Picchu or deal with their noise while you are South American Hunting.

#4 Book Cheaper Accommodations

After flights, where you stay in South America may be the costliest factor on your budget for traveling South America. But it doesn’t have to be costly, if you are willing to explore alternatives to a typical hotel. For example, most countries in South America have Airbnbs and many of them are beautiful. For example, you can book the Romantic Cabana Airbnb in Colombia pictured above for a mere $40 a night! To save a little extra on your next Airbnb, check out sites that offer promo codes and coupons like the Airbnb section of Capitol One Shopping.

Another alternative to overpriced hotel chains is booking a night in a hostel in South America. Now before you start rolling your eyes at the idea of some dormitory-style accommodation for smelly backpackers, hostels are actually a lot of fun. First of all, they can offer some of the cheapest ways to travel South America and more often than not, hostels have large private nice rooms at a fraction of the cost. Plus, we have found that in our travels around South America, hostels often provide fun environments to meet new people and other amenities to liven up your adventure.

#5 Book your activities ahead of time

So, this is often one of the few tips for traveling South America we failed to follow, and it ended up costing us extra. But, booking bucket list activities ahead of time can save a lot of time and money for anyone on a budget. Now, we often do research before heading to one of the 12 countries in South America with major tour companies. Plus, it reduces the stress of haggling with local tour operators in a language you might not be comfortable speaking.

One of the first places we now check is Get Your Guides. With over 800 different excursions and adventures, we find that they often offer some of the best deals that save us money. But if you can’t find what you are looking for there, then Viator is another option with almost 22,000 organized tours throughout South America.

#6 Use local transportation to get around

Now let us start by saying that in no way do we recommend hitchhiking around South America. Of course, people do it, but you always need to stay safe. With that said, there is no reason why you can’t take local trains, metros, or even ride the bus in any of the countries in South America. In fact, there are all types of buses that are actually quite nice to ride in most of the countries and they tend to be some of the cheapest ways to travel South America.

For example, Eric booked a comfortable air-conditioned double-decker bus on Bookaway from Lima to Cusco in Peru for less than $40 and it was awesome. Not only was the bus extremely comfortable but it had wi-fi, reclining seats to sleep, and they fed him 2 meals along the trip. Plus, what better way to see the country you are traveling than through a giant bus window!

#7 Save money like a local and eat like a King

Being from New Orleans, we don’t just eat to live but we LIVE TO EAT! So, wherever we travel, trying the local cuisine is usually pretty high on our list. But of course, if you are trying to save money while traveling South America, then choosing what and where to eat can often be a struggle. That is why we follow a few tips to save money on food:

1. The first thing we do is ask the locals. One of the best parts of staying in Airbnbs or even hostels is that people are always willing to share their favorite secret spots! Plus, they may even want to join you which adds to an amazing experience.
2. Explore Street Food. Now, we don’t want you to get sick. So do some scouting of local vendors. But ultimately, don’t be afraid of street food. If you watch where others are eating you are bound to come across some amazing traditional foods at street-stalls. Plus, it ends up only costing just a few dollars so you can sample different bites.
3. Hit up the local grocery store. This is probably one of our favorite things to do! It is so cool to just stroll around a grocery store seeing what different foods and produce are local that you may have never seen before. Plus, it is a great way to save money if you use it to stock up on snacks or even breakfast foods.
4. Fill up on Menu Del Dia. In most Latin American countries, many restaurants will have a special on Almuerzo (lunch) or have a Menu Del Dia which is basically the special of the day. These pre-fixed menus are often a bargain but are still packed with tons of local flavor and will leave you full.

#8 Explore the area for free

If you do your research or ask around, you are bound to find tons of local activities, festivals, or even museums that offer free admission. This is especially true of the beautiful churches throughout South America. Whether you are of the same faith or not, most churches will allow you to enter and walk the grounds for free as long as you are respectful.

Another way to find free activities in your area is to check with the front desk or your Airbnb host. Often, these locals know of all kinds of concerts or small festivals going on nearby. If they don’t know you can always check a hotel or local hostel. In general, even if we aren’t staying there, we go in and ask for a map from the concierge or person working at the front desk. Then, we just ask for recommendations on the best free tourist attractions in the area.

Lastly, check online. With sites like FreeTour.com you can simply book a free walking tour with a local guide in the city. Now, to be clear, these local tour guides often work on tips, but they are a great way to discover where you are in South America.

#9 Be willing to haggle

Not going to lie, souvenirs are neat to look at, but it is rare that we buy any. Though recently, we have been collecting things we can use as ornaments for our Christmas tree. With that said, it can be hard to save money traveling in South America if you are spending tons on souvenirs. That is why we recommend you haggle.

Now for most people, haggling can be a bit uncomfortable. Plus, in some of the more developed countries like Argentina or Brazil, it isn’t always common. But it never hurts to ask especially when dealing with street vendors or in open markets. You might not talk them down half price, but a dollar saved is a dollar earned for food or fun!

#10 Know the cost of a Big Mac

Okay, I can feel you staring at us blankly wondering why on earth would anyone ever want to travel to South America just to eat a McDonald’s Big Mac. Well, we do love two all-beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun as much as the next guy. But, we would never want you to skip out on any of those amazing local dishes.

However, one of the best ways to budget travel in South America is to use the Big Mac Index. Created in 1986 for fun by The Economist magazine, the Big Mac Index is a tool to help travelers understand the relationship between your own country’s dollar versus the relative value of a dollar in the country you are visiting.

Therefore, before you travel, you should check out The Big Mac Index Converter to help you better understand how much your dollar can actually buy there.

To check it out, just plug in the cost of a Big Mac in your own country in the Big Mac Index Converter. It is pretty self-explanatory. But let’s give you an example:

At the time of publishing, a Big Mac in the United States averages about $5.50, and let’s say we are traveling to Peru.  As you can see when you enter the price of a Big Mac in the U.S. into the Big Mac Index Converter here, it gives you all kinds of information. But the point I like is the actual purchasing power and the real market value. Basically, if you have $5.50 USD then you can buy anything that in the exchange rate is worth about $3.41 USD. So, your money is worth more…Cha-Ching!

Disclosure: This post, “Budget Travel in South America”, is a sponsored post. However, All opinions expressed below are our own. Also, this post may contain affiliate links. Using the links doesn’t cost you any extra, and it helps keep the site free, fun, and community supported! Eric & Darcee will never recommend a product that we don’t genuinely believe in, actually use ourselves, have researched, and trust. Please see the disclosure policy for more information.