Would you like to take a gap year, but are afraid you won’t be able to afford the costs? Or perhaps you’re really keen, but your parents are worried about the money and don’t want you ending up in debt.
These are both valid and sensible concerns! But if a gap year is what you really want and you have a plan in mind, you might be pleasantly surprised about how affordable some options are. Let’s take a look.
The nuts and bolts of gap year costs
Even if you’re already working and plan to live at home rent-free for the next 12 months, you’ll need a financial plan. Without one, you could fritter away all your hard-earned salary and not may not be able to achieve your goals at the end of your gap year. Unfortunately, the reality is travel, study, and gap year programs almost always have costs associated with them.
First, you need to figure out how much it’s going to cost you overall, and don’t forget to include the smallest details, because they all add up. Then, figure out how you’re going to be able to afford everything, and then some – running out of money half way through your gap year isn’t ideal.
If your parents or other family are helping you out, great! You still need to know what costs to expect, then plan a budget to make sure your money will last as long as it needs to. After all, their pockets are only so deep, so don’t expect constant top-ups.
Our biggest tip? Try to avoid getting into debt for a gap year. Ending your gap year with a lot of money owing (and don’t forget interest on top) could set your future plans back.
The three steps to gap year success
Keen to take a gap year, but unsure where to start? Here are a few simple steps to follow.
Plan
Work out what you want to do and where you want to go. You need these details first so you can work out how much everything will cost.
Budget
Once you know how much you need, write a clear budget that lists every item. You’ll need at least a fairly accurate estimate of your overall costs to ensure you save enough.
Save
Once you know how much you need, you can set some goals and start saving. Having a backup plan is usually also a good idea, just in case something unexpected happens or you change your mind.
Your gap year options
There are tonnes of different gap year options to choose from, and the costs vary between all of them. Even so, we’ve broken down a few different gap year options and the costs you can expect to be associated with each. Keep in mind these lists aren’t comprehensive and there may be other costs we haven’t included – at the end of the day, it’s up to you to create a thorough budget and prepare accordingly.
Travel
If you want to explore the world and broaden your horizons, travel is the quintessential gap year choice. Think of a travel gap year like a really long holiday – most of the costs are the same, just stretched out over a longer period of time. Here are some of the things you’ll need to include in your budget:
- Travel to, from, and between your destination/s
- Accommodation
- Food (and remember, you’ll probably be doing a lot of dining out)
- Daily travel (bus or train fares, bike or car rental costs, etc.)
- Tours and experiences
- Souvenirs and gifts
- Emergency money
- Pre-travel costs (passport fees, medical checks, visa applications, etc.)
Work
It might not seem like everyone’s idea of fun, but sometimes the only way you can afford a gap year is to combine it with a job. On the bright side, you’ll gain heaps of valuable skills, meet heaps of new people, and potentially end up with more money than you started with. It’s pretty common to combine travel with work, so as well as the above costs, here are some other things you might need to consider:
- Uniform and/or tools
- Travel to and from work
- Applying for a working visa (if working overseas)
- Income tax
Learn
A break from formal learning like school or university doesn’t mean you need to totally switch your brain off. Lots of people use their gap year as an opportunity to follow their passion or learn something they’ve always wanted to. If this sounds like something you might like to do, here are some costs you might need to prepare for:
- Course or workshop fees
- Materials and/or tools
- Travel costs
Specialised programs
There are heaps of providers out there that offer ready-to-go gap year packages, making the planning process a breeze – all you need to do is sign up, pay the fee, and get ready to go! The overall costs of these programs vary wildly depending on lots of factors, like what’s involved, where you’ll go, how long the program is, and even the provider themselves. Your upfront costs are usually high, but generally you don’t need to worry about ongoing costs during the program, as things like accommodation, meals, and travel are covered. This makes them a great ‘set-and-forget’ option (if you can afford the initial fees). Your costs typically include:
- Program fees
- Connecting travel (e.g. from your hometown to the city the program departs from)
- Optional experiences not included in the program fees
- Souvenirs and gifts
- Emergency money
- Pre-travel costs (passport fees, medical checks, visas, etc.)
Think outside the box
Need a bit of extra help meeting your savings goals? Apply for money towards your time out. There are scholarships and grants on offer through some providers or external organisations. If your application is successful, you could receive money to put towards your program fees, or receive a bit extra to use how you’d like.
It’s always worth having a chat with government services too. They won’t be dishing out money for nothing, but if you’ll be volunteering or earning below a certain threshold during your gap year, there could be some financial assistance you’re eligible for.
And if all these options still feel out of reach, there are lots of other ways to have a great gap year too. You could travel locally, find work experience or volunteer, or even just take some time out to relax, refresh, and do some self-improvement. Ultimately, the choice is yours.
Want more?
If you want more information about opportunities or how to plan your gap year, head over to our page, or grab a copy of our Gap Year Guide from the bookshop.