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Budget-minded family travelers might choose non-traditional kinds of lodging, such as: hostels, which nowadays often have private rooms for families; well-organized hospitality clubs, through which you stay with other (usually very interesting) families; modestly-priced homestays in local family homes; or volunteer vacations.
Hostels
Are hostels a good place for travelling families? Sometimes yes, due to a trend away from dormitories to small rooms.
Hostels of Europe
Hostels have changed; many have private rooms for families. This great website specifies whether a hostel is quiet, has a kitchen, suits families, etc.
Hostels.com: Worldwide Hostel Links
While some hostels are suitable for families, many aren't; you'll have to do some research. Here's a place to start.
Hospitality Club: SERVAS International
 SERVAS is a network of hosts who offer each other 13,000 "open doors" in almost all countries.
Volunteer Vacations ("Voluntourism")
[p]For families who want to do more than just have their own fun on a vacation: a wide array of volunteer vacations are available, and some welcome families.
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