How to take a gap year trip without breaking the bank - MoneySense (2024)

Photo by Daniel Torobekov from Pexels

There are so many decisions to make as a young adult. From choosing your post-secondary program to making career choices—not everyone has their life figured out yet. So what can you do about it? Well, many people choose to take a gap year. It’s a great way to grow personally and take a break from academic studies. It’s also the perfect opportunity to travel and see the world.

What is a gap year?

A gap year refers to taking a year off, typically with the goal of pursuing an interest or figuring out what to do next in life. Most people who take a gap year (a.k.a. “gappers”) do so after they graduate high school, but others do it in the middle of their college or university program or before they start their career. While each person’s gap year is unique, common themes include stepping outside of your comfort zone, travelling solo or with friends, learning about new cultures, and self-reflecting on new experiences.

Benefits of travelling during a gap year

It’s true, taking time off to travel as a young person can be expensive and nerve-wracking. However, there are plenty of advantages that come with travelling before you start a new school year or your career. It can allow you to:

• Expose yourself to different cultures and be in a new environment
• Discover new things that you can’t learn from a textbook
• Add global experience on your resume
• Be adventurous
• Get hands-on training
• Learn about yourself and become more self-aware
• Manage your own budget
• Meet new people and make new friends
• Create everlasting memories

A gap year can make financial sense

Taking a gap year can be the best thing for you financially as well. If you’re uncertain about your academic interests, for example, a gap year gives you more time to decide; it can confirm your previous choices or open your eyes to different possibilities. Think of it this way: Switching programs part-way through your education costs time and money. So, it could be advantageous to figure out what you want to do first. Plus, a gap year could provide you with more time to save money for your post-secondary studies, while allowing yourself to recharge between academic years.

Deciding what to do during your gap year trip

Before picking a destination, decide why you want to travel in the first place. There are many exciting options, and knowing which one interests you most will determine how you should prepare financially. Here are some ideas:

Volunteer, study or work abroad

Some gappers like to volunteer their time. From learning about wildlife conservation to participating in animal rescue and teaching English, there are unique opportunities to give back.

Another great option is studying abroad. Some programs allow you to earn a university or college credit, which may help you justify the cost of the trip and complete your post-secondary studies. If you are currently enrolled in a program, check with your school to see if they offer exchange programs.

If you are looking to gain some practical work experience, you can find part-time jobs while you are travelling. This can help you fund your trip or to save money for tuition the following year.

Taking a road trip

Sometimes you just need to hit the road! A great way to visit multiple cities is by taking a road trip. You can rent a car or an RV so that you have a place to sleep—saving you on the cost of booking accommodations. From driving through the Rocky Mountains to eating fresh lobster in the Maritimes, it can be fun to experience the diverse landscape from coast-to-coast. It’s an excellent way to start exploring your own backyard. In my 20s, I had the opportunity to go on an 11-day road trip from Toronto to Nanaimo, B.C, which allowed me to see our vast country for the first time.

From New York to L.A., there are plenty of sightseeing opportunities south of the border as well. What I like about staying within North America is that you can choose between visiting urban cities or camping out in national parks. Keep in mind that with the currency exchange rate, your expenses will be higher travelling in the U.S.

Backpacking through Europe

For those who are graduating from a post-secondary school and want to explore the world before they enter the workforce, a popular destination is travelling to Europe. From visiting the famous Mona Lisa in the Louvre, and sipping on sangria in Barcelona, to watching an orchestra perform in Austria, you can hop between many countries while staying on the same continent. If you’re travelling on a budget and open to meeting international travellers, you can explore different hostels, an affordable alternative that’s more like a dorm than a hotel.

In my 20s, I went on a group tour throughout Europe for an entire month. I visited 13 countries and made friends from all over the world. I learned about the history, indulged in local cuisine and checked off a ton of tourist attractions from my bucket list.

Choosing your destination

Here’s the fun part—deciding where to visit. Once you’ve decided why you want to travel, you can narrow down your destination by asking yourself these questions:

1. How long do you want to travel for? A few weeks, a few months or an entire year?
2. Do you want to travel internationally or locally?
3. Do you want to travel by yourself or with friends?
4. Do you have a shoestring budget or plan to splurge?
5. Do you want to choose a gap year program run by an organization or plan your own itinerary?

How to finance your trip

Create a travel budget

Here are some expenses to consider based on the type of trip you will be taking. Undoubtedly, these costs will vary widely depending on where you choose to travel, the length of the trip and your budget. No matter what type of trip you’re taking, account for unexpected costs by adding a contingency of around 10%—just to be safe.

Saving strategies for a gap trip

Let’s take a look at some ways you can save up for either a short or extended trip.

Short-term trips

If you’re travelling for a short duration (say, for several weeks), it’s a good idea to save up the money in advance, or else you’ll have to pay off any balances upon your return. You can find travel deals online through platforms like Travelzoo. Don’t forget to look up travel partners that offer discounts with your student card or college/university alumni group. If you need to earn extra cash, you can do so with a side hustle.

Long-term or year-long trips

Long-term trips could last from several months to a full year and will require a different saving strategy. Besides saving up in advance, maybe even in a dedicated travel account, you may consider working while you travel.

If you require financial assistance, the Canadian Gap Year Association and Mobilize offer scholarships for soon-to-be gappers. Make sure you know when the application deadlines are so you don’t miss them!

If you are travelling on a budget, find as many free or low-cost activities as you can, such as hiking, going to the beach or visiting an art gallery. Or, get a travel rewards credit card which you can use for discounts on bookings and other travel perks.

Foreign currencies: Which form of payment should you carry with you?

An important tip: Check if the place (or places) you are visiting accepts cash, debit cards or credit cards (such as Visa or Mastercard). During my travels abroad, I was surprised to discover that a country as technologically advanced as Japan can still rely heavily on cash. So you may want to get local currency at your bank or exchange counter before you leave on your trip. Typically, the airport exchange counters charge you a premium.

Are you ready to pack your bags?

A gap year may not be suitable for everyone, so it will require reflecting on whether it’s worth it for you. Hopefully, your gap trip can help you gain some clarity, become more mature, and discover (or confirm) your educational interests. Plus, it could help you boost your self-confidence, learn new skills and become a global citizen.

Remember, you have the ability to customize your travel gap year experience. Bonus: If you can earn school credits while you’re at it, then it may be a no brainer. Whether you’re in between academic years or have just graduated from school, it’s a great time to start planning your once-in-a-lifetime trip.

Read more Making It:

• First home savings account: A Gen Z guide to achieving home ownership
• How to survive a recession: Six tips for Gen Z and those who haven’t faced one before
• Working towards your dream lifestyle? Here’s how financial goals can help
• Take control of your finances with these budgeting tips for young adults