Me and two of my friends are backpacking in Europe for 1 month as our way of getting out in the world after graduating from high school this June and we are visiting 7 cities; London, Rome, Zurich, Berlin, Amsterdam, Bruxelles, and Paris…We are will be traveling by the Eurorail and staying in youth hostels during the trip, but are concerned about how much money we should be prepared to bring with us for food and all that touristy stuff and still be cheapest as possible. WE NEED HELP!!!!!
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You will have a blast! It's great that you are starting to plan now, the more time you put into it before you go, the more fun you will have when you get over there!
Eurail is the cheapest by FAR, in terms of travel. From what your itinerary states, the cheapest will probably be the 15 day Eurail Global Pass for 2nd Class Youth. It will run you about $485. The group rates, which were mentioned by a comment above, are still more expensive then youth passes, stick with the Youth pass!! If you are willing to cut off one of the countries, then the 5 country select pass will save you a little over a $100 bucks. Although a hundred bucks to see a whole other country is well worth it.
Hostels are a great way to save cash, but can add up. Find out if you need to be a member of the IYH and see if having the card (about 20 bucks) will save you when you decided which hostels you are staying at.
You can get by on an average of $30 a day (including modest sight seeing) but expect to go over budget. My personal opinion is that it is safe to have a budget, but don't let it get in the way of a once in a life time trip. If slimming your trip down will let you see cooler things then save one of those cities for another trip.
Get an International Student ID Card. (You can order them at STA.com) They will get you crazy discounts at most popular sites, and will pay for itself over and over. I lived in the Middle East for a while, and that card saved me a TON!
Food can be where you easily drop a lot of cash so be careful. Most hostels will give you breakfast…it's not much, so don't expect much. Lunches are great because you can find cheap places in the day, but dinners can get pricey. Try stopping by a market in the day and stocking up on breads and cheeses that you 3 can split together, you will save a lot buying from merchants and grocery stores and splitting it all up.
Last bit of advice, book your hostels now. You will get the cheaper and nicer ones if you book them now! If you show up who knows what you will get and you could spend most of your day hunting for a place to spend the night…no fun!
Good luck, and have fun!