Family Travel in Iceland: A Guide to Saving on a Family Vacation

If you’ve been wondering whether Iceland actually works as a family vacation, the short answer is yes. The longer answer is that it works well — but only if you know which experiences are worth paying for, which ones are essentially free, and where families quietly save the most money. After fourteen years of writing about travel here, I can tell you that the difference between a trip that breaks the bank and one that doesn’t usually comes down to a handful of choices made early on.

This is your complete family vacation guide to Iceland from someone who lives here. I’ll cover what to do with kids, how to dress them, where to eat, what to skip, and the real ways to save money on the trip. Read on to unlock tips about family travel in Iceland.

Is Iceland the place for family-friendly travel?

It is — and not in the marketing-brochure sense. Three things genuinely set Iceland apart for families:

• It’s relatively free of crime. You can walk most places at most hours without thinking about it.
• Kids can play freely outdoors. Icelandic children grow up moving between homes, parks, and pools largely unsupervised. That same culture extends to visiting families — your kids will be welcome and safe in any public space.
• Healthcare is high-quality and accessible. If something goes wrong, you’re in good hands.

On top of that, kids are welcome pretty much everywhere. Most restaurants have either a kids’ menu, a kids’ corner, or a relaxed attitude about children running around. Museums tend to take kids seriously and design exhibits with them in mind. Swimming pools — and there are pools everywhere — provide floaties, baby tubs, and high chairs in the showers. Tap water is perfectly safe to drink. Local food is clean and unfussy.

What Iceland is not is forgiving of bad weather decisions. The biggest mistake families make is treating Icelandic nature like a theme park. It is not. Read the safety section near the end of this guide before you book anything.

When to visit Iceland with kids

Both summer and winter work for families, but they offer very different trips.

Summer (June–August) gives you long daylight, mild temperatures, open roads and tours, and the easiest weather to plan around. It’s also the most expensive and most crowded time to come. If your kids are little and you want maximum flexibility, summer is the obvious choice.

Winter (November–March) is colder, darker, and quieter — and considerably cheaper for flights and accommodation. The trade-off is the weather. If you can handle short daylight hours, winter brings northern lights, snow play, ice caves, and a more relaxed pace at every popular site.

Shoulder seasons (May, September, early October) are the sweet spot for budget-minded families. Most tours are still running, daylight is generous, prices have dropped, and you’ll share waterfalls with far fewer people. If you have flexibility on school holidays, this is where I’d point you first.

How to dress your kids for Iceland

This is the part most families get wrong. Bring clothes that keep your child warm and dry, and think in layers.

The base layer is the most important one. Use non-itchy wool — merino is the gold standard. Never use cotton as a base layer, especially in winter. Cotton holds moisture, and a wet base layer in Iceland is a miserable child within twenty minutes.

Over the wool, add fleece or, even better, a thicker wool mid-layer. Finish with a good windproof and waterproof shell — a snowsuit or bunting for the little ones. Warm, waterproof shoes are non-negotiable year-round. So is a beanie, a scarf, and gloves. Yes, even in summer. Iceland in July can deliver a cold, rainy afternoon with a stiff wind, and you’ll want all of it.

If you don’t want to buy expensive technical clothing for kids who’ll outgrow it in a year, my partner Iceland Cover rents outdoor gear in Reykjavík. You can pick up jackets, trousers, and boots for the family on arrival and return them on departure. This is genuinely one of the smarter ways to travel light to Iceland with children.

Getting around Iceland with kids

Three options, in order of how I’d rank them for families:

Rental car. The most flexible option. You stop where you want, eat lunch on your own schedule, and don’t have to herd tired children onto a bus. A small fuel-efficient car is fine for the Ring Road in summer; you only really need a 4×4 if you’re driving F-roads in the highlands or visiting in winter. My discount codes page has codes from several Icelandic car rental partners — savings of around 5–10% are typical.

Camper van. If your kids are old enough to enjoy the adventure, a camper van combines transport and accommodation in one bill. This is often the single biggest saving available to a family in Iceland. Larger family vans sleep four to six. My partners include some of the highest-rated campervan companies in the country.

Day tours from Reykjavík. If you’d rather not drive, base yourself in the city and take guided day trips. You skip the rental car cost entirely, and a good guide adds context that kids genuinely enjoy.

One small but important note for parents: most North American car seats are not legal in Iceland because they don’t meet European safety standards (ECE R44/04 or R129 i-Size). Fines run around 30,000 ISK per child. Rent a compliant seat from your rental company — much easier than fighting with airline check-in.

Where to stay with a family

The smartest accommodation choice for a family in Iceland is almost always self-catering. An apartment or guesthouse with a kitchen lets you eat breakfast and at least one other meal at home, which is where most of your real savings live (more on that in a moment).

If you want a base outside Reykjavík for South Coast trips without driving back to the city every night, my partner’s Landhotel near Hella works well for families — comfortable, well-located, and child-friendly.

In Reykjavík, look for apartment hotels in the 101 (downtown) or 105 (Hlíðar) postcodes. You’ll be walking distance to swimming pools, bakeries, and museums.

Eating well in Iceland without overspending

Iceland is not a cheap country, and families notice it most in food. The good news is that the gap between an expensive food trip and a reasonable one is mostly about which doors you walk through.

Buy groceries at the supermarket chains Nettó, Prís, Bónus, or Krónan (my favorite, since they have the best selection among the lower-cost supermarkets). If you’re stocking up, avoid 10-11, gas stations, or corner stores. The price difference is significant — easily double in some cases — and Bónus and Krónan stores are everywhere. Make a stop on day one and stock up on breakfast supplies, snacks, and lunch ingredients.

Try the fish. If your kids don’t eat fish at home, an Icelandic holiday is a good time to introduce them to it. Plokkfiskur (mashed fish with potatoes) is the Icelandic equivalent of mac and cheese — even reluctant fish-eaters often go for it. Fiskibollur (fish balls) are sold in tins at any supermarket and make a quick lunch.

Bring a refillable water bottle. Tap water in Iceland is some of the cleanest you’ll drink anywhere. Buying bottled water is one of the more wasteful things you can do here.

Bakeries are your friend. A trip to Sandholt or any neighborhood bakery is a cheap, satisfying outing — coffee for parents, kleinur (Icelandic doughnuts) for kids, and you’ve got a treat for under 3,000 ISK for the whole family. The Kaffitar inside Eymundsson bookstore on Skólavörðustígur is a perfect rainy-day combination of books, hot chocolate, and pastries.

Ice cream is good in Iceland, all year round. If you’re driving the Golden Circle, Efstidalur farm makes its own from the dairy cows you can see through the window of the cafe. Worth the stop with kids.

Free and cheap things to do with kids in Iceland

This is the section worth bookmarking. Most of what makes a family trip to Iceland memorable costs almost nothing.

The Reykjavik Pond Kids love to interact with the birds there. Apparently, feeding ducks and other birds isn’t good for them, so go easy on that.

Swimming pools — the best deal in the country and perfect for family travel in Iceland

Every Icelandic town has at least one public swimming pool (sundlaug), heated by geothermal water. Adult entry is around 1,300 ISK, kids are typically free or close to it, and what you get is genuinely world-class: outdoor pools you can swim in even when it’s snowing, multiple hot tubs at different temperatures, water slides, kiddie pools, and saunas. Iceland’s swimming pools are where local families actually go. If you want to save, skip the lagoons once or twice, and you’ve paid for half your trip.

Reykjavík has several to choose from. Laugardalslaug is the largest and most family-oriented, with slides, an obstacle course, and shallow play areas. Vesturbæjarlaug is smaller, friendlier, and a local favorite. Sundhöllin is downtown and good for an evening dip.

If you’re driving south, the pool at Minni Borg is a brilliant kids’ stop with great slides and views. And don’t leave the slides only for the children. Take a ride yourself — that’s the whole point. At least I still love water slides at 54.

One important rule: showering without a swimsuit is mandatory before entering the pool. There are no exceptions, and locals will let you know if you try. Most pools have waterproof high chairs in the shower area for babies.

Walks, parks, and easy hikes for the whole family

The walk out to the Grótta lighthouse on the western edge of Reykjavík is the one I send most families on. It’s flat, stroller-friendly, and offers ocean views, birdlife, and a tiny tidal island you can walk out to at low tide.

Elliðaárdalur Valley is Reykjavík’s answer to Central Park — a wooded river valley right in the middle of the city, with walking paths, a salmon river, and surprisingly little tourist traffic. Locals walk dogs and push prams here. Pack a picnic.

For something a bit bigger, Esja, just outside Reykjavík, is the city’s house mountain — kids who can manage a steady walk will be fine on the lower trails. Helgafell in Hafnarfjörður is shorter and gentler. In the south, the area around Skaftafell has some of the most stroller-friendly nature trails in the country.

Day trips and family destinations for your family travel in Iceland

The ferry to Viðey island takes five minutes from the old harbor in Reykjavík. Once there, you’ve got a thousand years of history, easy walks, picnic spots, and a cafe in a 250-year-old stone house. It’s one of the most underused family days in the city.

Húsdýragarðurinn (the Family Park & Zoo) in Laugardalur has Icelandic farm animals, a small wildlife collection, a large playground, and a zip-line. You can spend a whole day there for the price of a cinema ticket.

If you’re driving the Golden Circle or South Coast, the Slakki petting zoo is a perfect break for younger children — kittens, rabbits, ponies, and the rest of the standard cute animal lineup, all in one place.

The Háafell Goat Farm in West Iceland is home to the rare Icelandic goat breed (the same one that nearly went extinct and turned up in Game of Thrones). Kids can feed them. It’s an easy detour off the road to Snæfellsnes.

The Icelandic Farm Animals program connects you with real working farms where kids can meet horses, sheep, and cattle. Not a tourist setup — the animals genuinely live there.

Flatey in Breiðafjörður is a longer day out, but the ferry ride alone is a memory. The island is small enough to explore on foot in an afternoon.

The Settlement exhibition in Reykjavik gives you unique insights into Viking-age Iceland.

Museums and rainy-day backups

The National Museum is one of the best in the country and very accessible for kids who’ve passed the toddler stage. The Víkin Maritime Museum down at the harbor has actual ships you can climb through. The Settlement Exhibition in downtown Reykjavík puts kids inside a real Viking-age longhouse foundation. All three are reasonably priced and kid-friendly.

Activities worth paying for (and how to save on them)

Some Iceland experiences are worth the ticket price. Here are the ones I’d genuinely book for a family trip — most of which I have discount codes for through my newsletter.

Whale watching. Boats run from Reykjavík, Akureyri, and Húsavík, and the guides spend the trip teaching kids about the animals. I have codes for several top operators:

• Elding (Reykjavík) — 10% off single tours
• Special Tours (Reykjavík) — 10% off, including the Whales of Iceland combo
• Whale Watching Akureyri — 10% off single tours
• Hauganes Whale Watching (near Akureyri) — 15% off
• North Sailing (Húsavík) — 10–15% off depending on departure

If you’re heading to the Westman Islands, the Beluga Whale Sanctuary & Puffin Rescue Centre is an unusual one — rescued belugas in a sea sanctuary, plus rehabilitating puffins. Kids find it unforgettable.

The Lava Show. Full disclosure: this is my day job. The Lava Show is the only place in the world where you can watch real molten lava flow indoors, and it’s about as close as you’ll safely get to an active volcanic eruption. Kids find it fascinating; the geology lesson sneaks in by accident. Locations in Reykjavík and Vík.

The Lava Tunnel. A short drive from Reykjavík, this is a walk through a real lava tube formed thousands of years ago. Otherworldly is the right word. My discount code gives 10% off admission.

Whales of Iceland. An indoor exhibition of life-sized whale models. Excellent for younger children and a perfect rainy-day option. Combo tickets with whale-watching tours through Special Tours are available.

Into the Glacier. A 500-meter ice tunnel carved into Langjökull glacier. Older kids find it unforgettable. 10% off with my code.

Perlan. The big glass dome on the hill in Reykjavík houses an interactive exhibition on Icelandic geology, including a real ice cave you can walk through. It’s not cheap, but on a rainy day with kids who like science, it earns its ticket.

Zip lines. The Mega-Zipline near Hveragerði suits older children and teenagers — 10% off when booked online Monday through Thursday.

Horse riding. The Icelandic horse is small, friendly, and used to first-time riders. My friends at Icelandic Horse offer my subscribers a 10% discount on their tours.

Reykjavík Sightseeing bus. A one-day or two-day pass covers the main city stops at your own pace. Easier than dragging tired children between museums on foot.

How a family can actually save money in Iceland

Here’s the same advice in table form, with rough estimates for a family of four on a one-week trip. Numbers are illustrative — your mileage will vary.

How you save	What you do	Approx. saving
Self-catering vs. eating out	Apartment with kitchen + Bónus/Krónan groceries	50,000–80,000 ISK
Public swimming pools vs. Blue Lagoon	Daily dips at the local sundlaug	40,000+ ISK per visit avoided
Discount codes on tours	Newsletter signup + book direct	5–25% per booking
Camper van vs. hotel + car	Combined accommodation and transport	30,000–50,000 ISK per night avoided
Free hikes and walks	Grótta, Elliðaárdalur, Esja, Skaftafell	20,000+ ISK per outing avoided
Bring a water bottle	Tap water everywhere	Small but real over a week
Rent outdoor gear	Don’t buy what your kids will outgrow	30,000+ ISK per child

The single biggest one is grocery shopping at the right supermarket. Get that right, and the rest is a bonus.

Safety in Iceland with children

Iceland is a safe and clean country. Tap water, local food, and the environment present no real health hazard, and you can take in the landscape without worrying too much about the little ones. What you do need to respect is Icelandic nature and its mood swings.

A few rules I’d write on the back of every plane ticket:

• No hikes in bad weather. If the forecast is rough, cancel and go to the swimming pool instead.
• No driving off-road. Even a few meters off the marked road damages fragile vegetation and carries large fines.
• Stay back from rivers and the ocean. Currents are strong and treacherous, and Icelandic rivers are colder and faster than they look.
• Never walk on or along glaciers without a guide and proper equipment. Crevasses kill people every year.
• Drive gently on gravel roads. Soft moves only — sharp steering or sudden braking on loose surfaces is how cars roll. Icelandic roads tend to be narrow and windy as well.
• Black sand beaches. Reynisfjara on the South Coast is beautiful and dangerous. Sneaker waves can surge thirty meters up the beach without warning and pull people out to sea. Stay well back, watch the color-coded warning lights, and never turn your back on the water with children near it.
• Check the forecast and road conditions. vedur.is for weather, safetravel.is for everything else. Both are excellent.
• Car seats. Mentioned earlier — rent local, not from home.
• Pool rules. Shower fully (without a swimsuit) before entering. This is non-negotiable.

Frequently asked questions about family travel in Iceland

Is Iceland a good place to travel with babies and toddlers?

Yes. Iceland is one of the easiest countries in Europe for very young children — restaurants welcome them, swimming pools provide baby tubs and high chairs, and locals are unbothered by a fussy toddler in a cafe. The main thing to plan around is the weather and dressing them properly.

What’s the cheapest way to do a family trip to Iceland?

Camper van + Bónus groceries + free swimming pools and walks + a small handful of paid tours booked with discount codes. That’s the formula.

Do we need a 4×4 with kids?

Not for the Ring Road in summer or for any standard tourist driving. You only need a 4×4 if you’re driving F-roads (highland gravel roads, summer only) or visiting in deep winter.

Are Icelandic swimming pools safe for kids?

Very safe and very welcoming. Most have lifeguards, dedicated kiddie pools, and baby equipment. Just remember the shower rule.

Should we go to the Blue Lagoon with the kids?

Children under two aren’t allowed, and personally, I think families get more out of the local pools at a tenth of the price. If you want a “spa day” experience and don’t mind the cost, go once. Don’t make it your only swim of the trip.

What’s the best Icelandic food for picky kids?

Plokkfiskur (mashed fish with potatoes), skyr (Icelandic yogurt), Icelandic hot dogs (pylsur), kleinur (twisted doughnuts), and Prince Polo wafers. Most kids find at least three of those work for them.

How do we get the discount codes?

They’re free. Sign up for my newsletter, and you’ll get the full collection delivered to your inbox — over a hundred codes covering tours, car rentals, camper vans, gear rental, and more.

One last thing about family travel in Iceland

Iceland has a reputation for being expensive, and honestly, that reputation isn’t entirely undeserved. But after running this magazine since 2012 and watching thousands of families travel here, I can tell you that the families who go home talking about how reasonable it all was are doing the same handful of things — staying in places with kitchens, swimming at the local pool instead of the famous lagoon, and using discount codes on the experiences that are genuinely worth booking.

If you do those four things, Iceland is one of the best family destinations in the world. If you don’t, it can absolutely empty your bank account. The difference is just a bit of planning.

Have a great trip — and if you do, drop me a line. I always like hearing how it went.

Written by Jón Heiðar, Editor, Stuck in Iceland Travel Magazine