There is a widespread stereotype about Europe: "it is very expensive". But with proper planning a budget-friendly European tour is entirely possible.
Flights
Low-cost airlines like Ryanair and Wizz Air offer very cheap tickets to Europe's most beautiful cities. Search 2-3 months in advance.
Hostels vs Hotels
For young travellers, hostels offer great savings. Good-rated hostels for 15-25 €/night on Booking.com.
Food
Restaurants are expensive. Local markets, supermarkets and cheap cafes are more affordable. Every city has "student lunch" daily menus.
Transport
An Interrail pass lets you travel all of Europe by train. City public transport is 10 times cheaper than taxis.