Budget Planning

Europe has always been an expensive travel destination. Eastern European used to offer an affordable option, but today, most countries in Eastern Europe are rivaling their Western counterparts in cost. There are a few tricks you can use to save some money in Europe. Consider traveling in the shoulder season, between the peak and low seasons. The weather will still be comfortable and activities will be open, but likely at a lower cost. Also look into budget airlines before you arrive. There are many ways to get cheap plane tickets around Europe and this can save you time and money. Also, make lunch your largest meal of the day. In most larger cities you can get a "business man's lunch" for a cheaper price, and then either cook, or eat light for dinner. If you're traveling as a couple, it may also be cheaper to stay in a hotel than a hostel, so consider your options. Also, do some research into couchsurfing. Alternatively, many people rent rooms in their apartments in larger cities in Europe. You can often find these listed on Craigslist.org.

Things to Do

Museums: Europe is rich in history and has some of the best museums in the world. From the British Museum in London to the Louvre in Paris, a history or art enthusiast could spend days lost in these incredible examples. If you're on a budget, do some research ahead of time. Many museums have a "discount" day once a week or month. Try to schedule your museum visit on that day. If you plan to visit a lot of museums and sights within one city, consider getting that city's "City Pass." Most touristy cities have them and they will often get you discount or free entrance into museums among other things.
Winter Sports: While many people go to Europe for the cities, there are many opportunities for adrenaline junkies as well. There are some famous winter sport destinations. If you're heading to Switzerland, consider using Lucerne as a jumping off point. If you're on a budget or looking for a different experience, consider going somewhere a little less famous and expensive like Vitosha, just outside of Sofia, Bulgaria.
Shopping: Whether you're looking for cloths, antiques, or handmade gifts, shopping opportunities in Europe abound. You can find high end boutiques in almost every city, and most small towns have lovely weekend markets where you can pick up something unique and memorable.
Castles and Old Towns: Europe's strong history is still visible in many cities, and around the countryside where you'll see impressive castles, and amazing examples of detailed architecture. From the well preserved old towns in cities like Prague, to the famous castles dotting the countryside of Germany, history buffs can always find something to keep them entertained.

Budget Travel Destinations

While Europe is far from a budget destination, there are still a few hidden gems where you can get by on a backpacker's budget. Eastern Europe remains the cheaper option, although places like Budapest, Hungary and Istanbul, Turkey give Western Europe a run for its money. For affordable prices, you have to look elsewhere. Consider going to the Baltics, where cities like Tallinn offer incredible history and a nightlife that draws the young crowd. In southern Italy, places like Naples, are more affordable than their northern counterparts, Rome or Florence, and Dubrovnik is still more affordable to Mykonos or Santorini.

Transportation Budget

Do some research before you arrive in Europe. If you plan to travel by train there are some discount rail passes. Unfortunately with these passes you often have to pay unexpected add ons. Often, the cheapest way may actually be a cheap flight. Also look into bus routes and prices. These can be faster and more affordable than trains. If you're a student, get a international student ID card, which will also give you many discount options.