Italy is a wonderful country full of culture, history and great food, It is also a remarkably easy country for backpackers to explore, there are plenty of hostels and infrastructure in place to support those journeying around. This Italy backpacking itinerary aims to give a good introduction to the country for any first time visitor. Its generally focused on seeing the cities and culture that have shaped not just Italy but Europe as a whole. Rome, Naples, Florence and Venice all feature, as well as some other popular destinations.

When traveling in Italy things are beautiful, but with the Euro/Dollar conversion things can get very expensive, so let’s look at some great ways to save some money when travelling in Italy.
Italians are not big on tips, especially in restaurants, and definitely not in night clubs or bars. So forget the 15-20% rules so popular in America, in Italy your server won’t be expecting the same. If the service is impeccable then you leave 10%, which is considered a very good tip.

In most restaurants in Italy, water will cost you because it is always bottled. Remember that in Rome, water is free… in the many fountains around the city, and these are quite safe to drink from.

Visiting Italy's top three cities
When visiting Rome, Venice, or Florence, stay outside the city and go in by train for a day trip. You'll usually get better value accommodations and restaurants. 

When to travel
Summer in Italy can be hot and crowded, especially on the coast. Consider traveling in spring or fall. You're more likely to find bargains and fewer tourists. If you spend time indoors in museums, try winter travel for the best bargains.

Save money on food
Many restaurants offer a reasonable set menu at noon. Eat your big meal then and have pizza or a picnic in the evening. Shopping at local food markets not only helps you save money but allows you to mingle with locals. When eating at a restaurant in a tourist area, walk a couple of blocks away for better prices. If breakfast isn't included in your hotel rate, go to a local bar for your coffee and pastry. In many cities, sitting at a table will cost more than standing at the bar.

Save money with vacation rentals
Self-catering vacation rentals and agriturismo stays offer an affordable alternative to hotels. They often cost less and give you the option of eating some meals at home, further savings. 

May to June and September and October are the most pleasant months for touring Italy

temperatures are usually mild and the hordes of tourists not so intense. But starting in mid-June, the summer rush really picks up, and from July to mid-September, the country teems with visitors.

In mountain towns and ski resorts, high season is from mid-December through mid-March; low season is June, when many hotels are closed (which is a shame, for there's great hiking in the mountains during June's warmer days).

It's warm all over Italy in summer, especially inland. The high temperatures (measured in degrees Celsius) begin in May (sometimes later for the Alps), often lasting until some time in late September.
An enjoyable, affordable trip begins long before you leave home. Do your cyber homework: Surf the Internet and save. There are lots and lots of webpages and online services designed to clue you in on discounted airfares, accommodations, and car rentals.

Domestic or one-way flights within Italy (or Europe) can be killers.
The most distant flights within Italy (Venice to Palermo, for example) might be contenders for air travel, but opt for the train at a fraction of the cost, breaking up your travel times with overnight stops planned along the way. 
Train travel in Italy has improved immeasurably since the 1970s and 1980s. The newer Intercity trains are clean and efficient enough to make second-class travel a near first-class experience.

Use public transportation in cities rather than taxis.
It offers a peek into the daily lifestyles of the local residents. Most concentrated historical districts make sightseeing most enjoyable when done on foot; in the large cities like Rome or Milan, consider daily or weekly passes for unlimited travel on buses or subways.
Parking is a nightmare in Italy, and the police are serious about enforcing tow-away zones.
If you're traveling during high season (roughly Easter through Sept or Oct), book early. You won't get any discounts, but you won't be forced to spend more by upgrading just to find a vacancy in town.

Tourist menus (menu turistico) or fixed-price menus (menu a prezzo fisso) sound like a good deal and often are. But portions may be smaller, choices less varied or uninspired (expect the ubiquitous spaghetti with tomato sauce and roast chicken). Menus are usually posted in restaurant windows, so peruse your choices before entering and ordering.

Language
Italian is obviously the main language here. You can by fine though with English when visiting tourist sites and many restaurants will have English menus available. Outside the cities you might not find many who speak English so if your planning to go exploring then google translator might come in handy. But inside the cities you won’t have a problem, most people in the tourist industry will know some relevant words at least.

Money
Italy uses the Euro. There are lots of ATMs around, use ones inside banks if you are worried. I would recommend carrying some cash on you when going out to eat. There shouldn’t be a problem using your credit/debit card in hotels and popular restaurants. But some smaller restaurants and cafes will require cash, which can be preferred by some hostels and guesthouses too.  Definitively check with your bank about commission rates first if you plan to pay by card.

Transport Between the destinations on Italy backpacking itinerary
The best method to get between destinations is by train.
Buying tickets is quick and easy from fast ticket machine. Just change the language into English then select the destination and time.
There are usually cheaper trains available so check them in advance if you can.  
What I did was when I arrived into a city I went to the ticket machine and looked at what options there were for future days.
Use smartphone to take a screenshot, therefore I could check the times and prices without needing to look online.
 

Selected websites to Tips for Saving Money in Italy - How to Save Money on Your Italian Vacation

https://www.lifeinitaly.com/travel/travel-tips/tips-for-saving-money-in-italy/

https://www.tripsavvy.com/italy-budget-travel-tips-1547557

Fifty Money-Saving Tips for Planning an Affordable Trip to Italy from $90 a Day

https://www.frommers.com/tips/airfare/fifty-money-saving-tips-for-planning-an-affordable-trip-to-italy-from-90-a-day

Italy backpacking itinerary (3 weeks long and adaptable)

Start your trip
Naples (suggested time 4 nights, inc 1 for arrival and day trips)
Binge on history in Rome
Rome (suggested time 4 nights though can be done in 3)
Enjoy culture and art in Tuscany
Florence (suggested time 3 nights inc day trips)
Cinque Terre
The Coastal villages:  Riomaggiore, Manarola, Corniglia, Vernazza and Monterosso (suggested time 3 nights)
Head up to Northern Italy
Venice (suggested time 2 nights)
O Romeo, Romeo, wherefore art thou Romeo?
Verona (suggested time 1 night)
Relaxation time
Lake Garda (suggested time 2 nights)
End of the trip
Milan (suggested time 2 nights)

https://davedoesthetravelthing.com/italy-backpacking-itinerary/