Travel Central America on a Budget: 6-Month Guide (2025)

For a long time, we had wanted to travel Central America. We had heard a lot about it, and when we finally went, we quickly fell in love with it ourselves. It’s a place full of beautiful nature, adventure and culture. You’ll find volcanoes, colorful towns, small mountain villages and beautiful coasts. The question is, can you travel this region on a budget? We traveled here for 6 months and did it on a budget, and in this post we will explain to you how. It’s totally doable, especially if you know a few tricks. This guide will show you how to travel Central America on a budget without missing the highlights.

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Why Travel Central America on a Budget in 2025?

• Affordable: Many countries in Central America are extremely budget-friendly compared to Europe or North America.
• Adventure: Imagine volcano hikes, surfing lessons, scuba diving, and jungle treks along with so much more.
• Culture: With Mayan ruins, colonial towns, and Caribbean vibes, there’s a huge mix of languages, music, and traditions.
• Nature: It’s paradise for nature lovers with rainforests, coral reefs, volcanic lakes and cloud forests.
• Compact and Easy: The countries are small and close together, making travel manageable without long-haul flights.

Central America Travel Route (Start North or South)

If you want to travel Central America on a budget, planning ahead for hostels and other things can save you a lot. You can either start in Panama and travel north, or start in Belize or Guatemala and head south. Many people include Mexico when traveling through Central America, however, since it’s technically not part of Central America, we’ll cover Mexico in another post. Your route depends entirely on what works best for you. We decided to start in Panama because of flight options, so it’s worth considering what makes the most sense for your trip.

Here’s an example itinerary covering roughly 6 months:

This adds up to around 6 months. You can adjust the time spent in each place depending on your interests and pace.

This is just one example of how you could plan your trip. One of the best things about traveling Central America is the freedom to change your plans as you go. Some places might make you want to stay longer, others you might pass through faster. Try not to plan every single day too tightly. Leave space for spontaneous adventures, local tips, and unexpected favorites along the way. That’s often when the real magic happens!

Panama: Budget Highlights & Must-See Spots

Time: 4 weeks

Best Places to Visit in Panama:

• Bocas del Toro: Caribbean islands with surf, snorkel and parties. 
• Boquete: Small town surrounded by mountains, coffee farms, and hiking trails.
• San Blas Islands: Stunning, remote islands with beach huts, run by the indigenous Guna Yala people.
• Panama City: Explore the city, see the Panama Canal, and visit the charming Casco Viejo with its cafés and nightlife.

Estimated Budget Costs in Panama:

• Hostel dorm: $11–$20/night
• Meal at local spot: $4–$8
• Bus across the country: $10–$20

Travel tip: Buses and shared shuttles are cheap and reliable for getting around Panama. If you plan to visit popular spots like Bocas del Toro or Boquete, it’s best to book hostels and transport in advance during high season. You can find places even if you wing it, but booking ahead usually saves money and stress.

For more information about Panama, check out our Panama Guide.

Costa Rica: Nature, Adventure & Budget Advice

Time: 4 weeks

Top Sights in Costa Rica:

• Puerto Viejo: Caribbean beach town with great vibe and beautiful surroundings.
• Santa Teresa: Surfing and sunsets. 
• Monteverde Cloud Forest: The cloud forest capital with hanging bridges, zip-lining and animal life.
• La Fortuna: Volcanoes, waterfalls, and hot springs with amazing nature.
• Manuel Antonio: Beaches, monkeys, and national parks.

Budget Travel Tips for Costa Rica:

• Costa Rica is pricier! Budget around $30–$50/day if your mindful.
• Public buses are very budget friendly ($1–$5).
• Buy groceries and cook in hostels.

Travel tip: Costa Rica’s slower public buses can be an adventure themselves, but if you’re tight on time, shared shuttles are a good option. Remember to book accommodations ahead in tourist hotspots like Santa Teresa and Monteverde. And if you love nature, don’t miss out on free hikes in national parks!

Check out our guide on how to travel Costa Rica on a budget for tips on saving money and must-see spots.

Nicaragua: Cheap & Stunning Destinations

Time: 4 weeks

Best Places to Visit in Nicaragua:

• Ometepe Island: Volcanoes, lakes, and island life.
• Granada: Beautiful colonial city with colorful streets.
• San Juan del Sur: Surf town with a fun nightlife.
• Leon: Climb an active volcano and try volcano boarding! 

Nicaragua on a Budget: Tips & Tricks:

• Hostel dorm: $6–$12
• Meal at local market: $2–$5
• Buses (chicken buses): $1- $3!

Travel tip: In Nicaragua, the cheapest way to get around is the chicken buses. They’re often packed and noisy but a great option if you want to experience local life and get around in a cheap way. Food stalls offer delicious meals for just a few dollars. Another great budget tip is to stay in guesthouses or hostels with kitchens so you can cook your own meals and save even more.

Check out our travel guide to Nicaraguas top destinations for more inspiration.

El Salvador: Budget-Friendly Adventure

Time: 4 weeks

Must-Visit Spots in El Salvador:

• El Tunco: Surf town and party spot.
• Ruta de Las Flores: Colorful villages, coffee farms, and waterfalls.
• Santa Ana: A historic city known for its impressive cathedral and the nearby Santa Ana Volcano, where you can hike to the crater and see its stunning turquoise lake.
• San Salvador: Capital with rich history, lively local markets, and a dynamic cultural scene.

El Salvador Travel on a Budget:

• Use colectivos and chicken buses for super cheap transport.
• Daily budget around $20–$30 (if you keep it simple and depending the place).
• Many hikes and waterfalls are either free or very cheap, making activities affordable.
• Book surf hostels in advance on weekends, or stay in nearby towns for lower prices.

Travel tip: El Salvador’s colectivos are reliable and cheap, making it easy to hop between towns and cities. Hostels around the beach fill up fast on weekends, so plan accordingly. Don’t miss trying pupusas, the country’s famous dish, it’s delicious and budget-friendly!

Honduras: Underrated and Affordable

Time: 4 weeks

Places to See in Honduras:

• Utila: A budget-friendly scuba diving paradise with a backpacker vibe. It’s considered the best place in Central America to get your PADI certificate, offering low prices and amazing scuba diving. The island is filled with social hostels, dive schools, and local eateries, perfect for long-term travelers.
• Roatán: Known for its stunning beaches, snorkeling, and diving. It leans more toward resorts and cruise visitors, which makes it pricier than Utila, but don’t worry, it’s still possible to travel Roatán on a budget. You’ll find local spots, hidden beaches, and options of cheap hostels. One of the few affordable hostels in Roatán can be found here.
• Copán Ruinas: Impressive Mayan ruins.
• Tegucigalpa: Capital surrounded by mountains with a mix of history, culture, and nature.

Budget Tips for Traveling Honduras:

• Utila is the place for affordable diving certifications ($250–$300 for Open Water course).
• Daily budget around $25–$35 if careful (everything depending on place and way of travel. The islands is often more expensive).
• Buy food before coming to the islands that you can cook in the hostel, this can help you save a lot.

Travel tip: Getting around Honduras can be an adventure, chicken buses on the mainland, ferries to the Bay Islands, and lots of friendly locals on the way. Hostels on Roatán and Utila fill up during high season, so book early if you want a good deal. Eating at local markets will save you money and give you a taste of authentic Honduran food.

Guatemala: Culture, Nature & Budget Tips

Time: 4 weeks

What to See in Guatemala:

• Lake Atitlán: Magical lake surrounded by volcanoes and indigenous villages.
• Antigua: Colonial town famous for its streets and volcano hikes.
• Tikal: One of the most amazing Mayan ruins in the world.
• Semuc Champey: Natural pools hidden in the jungle.
• El Paredón: Surf village on the Pacific coast, perfect for beach days and beginner waves.
• Flores: Colorful island town on Lake Petén Itzá, gateway to the ancient Mayan ruins of Tikal.

Budget Travel Advice for Guatemala:

• Hostel dorm: $6–$12
• Street food meal: $2–$5
• Shuttles between cities: $10–$20

Travel tip: Guatemala offers a mix of cheap chicken buses and slightly pricier shuttles. Towns like Antigua and Panajachel get busy, so booking your hostel early is wise. Street markets here are amazing so make sure to try local food that you can get for a fraction of restaurant prices.

Belize: Paradise Without the Price Tag

Time: 2 weeks

Best Places to Visit in Belize:

• Caye Caulker: Caribbean island with the motto “Go Slow.”
• San Ignacio: Explore caves, ruins, and rainforests.
• The Blue Hole: World-famous scuba diving site. 

Budget Tip:

• Belize is more expensive than other Central American countries.
• Budget around $40–$60/day.

Travel tip: Belize is pricier but still doable on a budget if you plan smart. Water taxis can be unpredictable, so leave some room in your plans. To save, stay in hostels with kitchen and cook your own meals, when eating out go for the cheaper local places. Hostels on islands like Caye Caulker book up fast during high season so book in advance.

Including Mexico in Your Trip

While Mexico is technically part of North America, many travelers include southern Mexico when exploring Central America. If you want to add Mexico to your route, it’s easy to start or end your journey there.

Since Mexico deserves its own detailed guide, we cover everything you need to know about traveling southern Mexico on a budget in a separate post – coming soon!

Central America Budget Breakdown: Country-by-Country Estimates

Note: If you want to include southern Mexico in your trip, daily budgets usually range from $25–$40, depending on the region. Some areas are much cheaper than others. We cover Mexico in detail in a separate guide – coming soon!

Rough Total cost to travel Central America on a budget for 6 Months:

• Tight Budget: ~ USD 4,500–$5,500 (Staying in hostels, cooking your own food, hitchhiking or using chicken buses, volunteering, minimal paid activities).
• Comfortable Budget: ~ USD 7,500–$8,500 (Private rooms, eating out more often, occasional tours and excursions, better transport options).

This includes accommodation, food, local transport, and activities but excludes international flights.

Final Travel Tips for budget travel in central America

• Travel slow to save money, local buses and longer hostel stays usually give discounts.
• Cook your own meals when staying in hostels with kitchen.
• Book in advance for lower prices for accommodation and popular tours.
• Negotiate tours and taxis where it’s normal.
• Volunteer or work-exchange programs for free or discounted stays.
• Use Couchsurfing for free accommodation and discover local life. Check our guide on how to find cheap accommodation.

Extra tips:

• Learn some Spanish before you go if you don’t know anything. Even just the basics will make things way easier, help you feel more comfortable, and allow you to connect better with locals.
• Stay flexible, Central America is full of spontaneous adventures!
• Carry cash for small purchases, buses, or places that don’t accept cards.

Don’t overthink it. Just pack light, stay flexible, and have a rough plan so you don’t miss the good stuff. The real magic happens when you let the road lead the way! For easy travel planning, check out our guide on How to Plan a Trip With Google Maps.