Great news for budget travelers! Ecuador is one of the best countries in the world to visit if you're watching your cash flow. In a nation where the average monthly income is about $200/month, essentials such as food, lodging and transportation are reasonably priced wherever you go. Every place in Ecuador worth seeing - Baños, Quito, Cuenca, the coast and the jungle to name a few - has budget options such as hostels and cheap food. Public buses are plentiful and inexpensive; dorm beds range from $2-5 per person per night around the country, including in the more expensive capital; and fixed meals provide cheap nutriment. Ask for a restaurant or cafe's "desayuno," "almuerzo" or "merienda" (breakfast, lunch or dinner) and you will find yourself with more food than you usually eat for $1.50 - $3. Even Ecuador's top destination, Galápagos, might not necessarily be impossible, if you know where to look. 
As a backpacker, your biggest expenses will be food, lodging and transportation. To read more about the best and cheapest ways to get around Ecuador, see our Transportation Tips for Budget Travelers page. To find out about cheap eats (that won't get you sick!), see our Food Tips for Budget Travelers page. To read more about hostels and the best inexpensive places to stay, check out our Lodging Tips for Budget Travelers page. Finally, just because you're on a tight budget doesn't mean you can't enjoy some pre-arranged trips and tours, which can be quite reasonable. Before you assume that you'll have to do everything yourself, visit our Tour Tips for Budget Travelers page. Finally, be sure to check out our Security Tips for Budget Travelers page before you go: it could save you a lot of trouble later on.