A gap year in Canada costs anywhere from essentially nothing (if you work full-time and live at home, you’ll net $15,000–$25,000 in savings) to $20,000–$30,000 for international travel, depending entirely on where you go and how you fund it. One of the most cost-effective approaches is often a working holiday visa: countries like Australia, New Zealand, and the UK let Canadians work full-time for 12–24 months, meaning you can travel and break even or come home ahead.
The financial trade-off of delaying university by one year is often overstated. Yes, you enter the workforce a year later, but working full-time before school and saving $15,000–$25,000 can eliminate or dramatically reduce the need for student loans. How a gap year fits with the rest of paying for school is in the student money guide. Before you leave, set up a no-FX-fee bank account and no-FX-fee credit card to avoid the 2.5% currency conversion fee that most Canadian banks charge on every international purchase.
Gap Year Cost Estimates
Gap Year Plan
Duration
Estimated Cost
Notes
Work full-time in Canada (save)
12 months
−$15,000 to −$25,000 (net savings)
Earn $30K–$40K, spend $15K
Volunteer in Canada
6–12 months
$5,000–$10,000
Room/board often included
Travel Canada (road trip/hostel)
3–6 months
$8,000–$15,000
Van life cheaper; hostels $30–$60/night
Backpack Europe
3–6 months
$10,000–$20,000
$50–$100/day budget
Backpack Southeast Asia
6–12 months
$8,000–$15,000
$25–$50/day budget
Working Holiday (Australia/NZ/UK)
12 months
$5,000 upfront + earn there
Working holiday visa covers costs
Study abroad / language school
3–6 months
$8,000–$20,000
Tuition + living costs
Combination (work + travel)
12 months
$10,000–$20,000
Most popular option
Gap Year Savings Plan
Monthly Savings Target
Months to Save $15,000
Jobs/Income Sources
$500/month
30 months (2.5 years)
Part-time job in high school
$1,000/month
15 months
Full-time summer + part-time school
$1,500/month
10 months
Full-time after graduation
$2,000/month
7.5 months
Full-time + side gig
$2,500/month
6 months
Full-time living at home (minimal expenses)
Monthly Travel Budgets by Destination
Destination
Accommodation
Food
Transport
Activities
Daily Total
Monthly
Southeast Asia
$10–$20
$8–$15
$5–$10
$5–$10
$28–$55
$840–$1,650
Central America
$15–$30
$10–$20
$5–$15
$5–$15
$35–$80
$1,050–$2,400
Eastern Europe
$15–$30
$15–$25
$10–$15
$5–$15
$45–$85
$1,350–$2,550
Western Europe
$30–$60
$20–$40
$15–$25
$10–$20
$75–$145
$2,250–$4,350
Australia / NZ
$25–$50
$15–$30
$10–$20
$10–$20
$60–$120
$1,800–$3,600
Japan / South Korea
$25–$50
$15–$25
$10–$20
$10–$15
$60–$110
$1,800–$3,300
Canada (road trip)
$20–$40
$15–$25
$15–$30
$10–$20
$60–$115
$1,800–$3,450
Working Holiday Visas for Canadians
Country
Age Limit
Visa Fee
Duration
Work Allowed
Australia
18–35
$840 AUD (as of July 1, 2026)
12 months (extendable)
Full-time
New Zealand
18–35 (Canadians only)
$770 NZD
23 months (Canadians get longer than most nationalities)
Full-time
United Kingdom
18–35, no ballot for Canadians
£340 GBP + £776/year health surcharge
36 months
Full-time
Ireland
18–35
€100 EUR
12 months
Full-time
France
18–35
€50 EUR
12 months
Full-time
Japan
18–30
¥0
12 months
Part-time/full-time
South Korea
18–30
₩0
12 months
Part-time/full-time
Germany
18–35
€75 EUR
12 months
Full-time
Insurance for Gap Year Travel
Provincial health plans pay little or nothing for care outside Canada, and each province sets how long you can be away before you lose coverage, so a long trip can affect your plan at home as well as your care abroad. What your provincial plan covers abroad is on is travel insurance worth it, and providers are compared on best travel insurance in Canada. Some working holiday programs require proof of insurance for the whole stay, which the destination country’s visa page states.
Financial Checklist Before Your Gap Year
Task
Details
Priority
Save target amount
$10,000–$20,000 depending on plan
Essential
Get travel insurance
In place before you leave Canada
Essential
Open a no-FX-fee bank account
Wealthsimple Cash, KOHO (Extra or Everything plan), or Wise
High
Get a no-FX-fee credit card
Home Trust Preferred Visa, Brim, Rogers WE
High
Set up emergency fund
$2,000–$3,000 accessible in Canada
Essential
Defer university (if applicable)
Contact admissions office in writing
If needed
File your tax return
Claim the Canada Groceries and Essentials Benefit (CGEB, formerly the GST/HST credit); free money
High
Check passport validity
Must be valid 6+ months beyond travel
Essential
Research visa requirements
Working holiday, tourist, student visas
Essential
Set up automatic savings
Even $50/month while travelling
Nice to have
The Bottom Line
A gap year that either makes you money (working holiday, full-time work before school) or at least doesn’t create debt is often considered the strongest financial outcome. Budget $30–$50 per day for Southeast Asia and Central America, $50–$100 for Europe and Oceania, and having a $2,000–$3,000 emergency fund accessible from Canada that you don’t touch for daily expenses is often recommended. Medical care abroad without travel insurance can cost more than the trip itself.