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Family trip to Italy - doable with a small budget?

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I've been wanting to go to Italy for a few years now. We always end up choosing somewhere else. The reason : Italy just seems so expensive! We always travel in the summer July or August- only choice. We have 3 teens. So, before we choose another country, I wanted to check in with u all. Can we do Rome (south Italy appeals to me too), the cirque sounds fun and Florence, somehow on a budget? Should we base ourselves in Rome? Any thoughts?

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