Can I use credit cards everywhere?

No. While hostels and larger tour operators accept cards, small towns, local buses, and markets are cash-only. Always carry an emergency stash of $200 USD in clean, crisp bills.

Is it cheaper to cook in hostels?

Yes, but only slightly. In places like Peru or Bolivia, the cost of ingredients is low, but street food is often cheaper than the time and effort of cooking. Cook when you want to socialize or need a break from heavy local food.

How to Budget for Backpacking South America

Budget for $40 to $60 USD per day for a comfortable backpacking experience. This covers dorm beds, local bus travel, street food, and one paid activity every other day.

Account for regional price variations. Budget $50–$60 for expensive hubs like Chile, Argentina (if you aren't using the Blue Dollar rate), and Uruguay. Expect to spend $30–$40 in budget-friendly countries like Bolivia, Peru, and Colombia.
Calculate your transport frequency. Long-distance buses are the primary way to move. Set aside $150 per month for transport if you move every 4-5 days. If you plan to fly to save time, add $100 per flight.
Track your daily 'base' cost. Always calculate your 'base' daily spend: Dorm bed ($12–$20) + food ($15–$25) + local transit/water ($5). Anything left over from your daily budget goes to excursions.
Factor in the 'activity' tax. Big-ticket items like the Inca Trail ($600+), Galápagos cruises ($1,000+), or Torres del Paine treks pull heavily from your budget. Save these as 'extra' costs, not part of your daily $50 run-rate.

Can I use credit cards everywhere?: No. While hostels and larger tour operators accept cards, small towns, local buses, and markets are cash-only. Always carry an emergency stash of $200 USD in clean, crisp bills.
Is it cheaper to cook in hostels?: Yes, but only slightly. In places like Peru or Bolivia, the cost of ingredients is low, but street food is often cheaper than the time and effort of cooking. Cook when you want to socialize or need a break from heavy local food.