Budget holiday in Sweden
Sweden may not be the cheapest holiday destination in Europe, but even with a limited budget, this Nordic country can be a realistic alternative. Apart from youth hostels and backpackers' you could consider staying at camping grounds. If you haven't got a tent there are often cabins available, and sometimes this alternative is cheaper than a couple of beds in a hostel.
The cheapest cabins tend to be small and very basic, but access to a communal kitchen and showers is normally included in the price. Duvets and pillows are provided, and if you bring you own bed linen and towels you don't have to rent such necessities.
The camping grounds often have a scenic setting by a lake or a river, but the drawback is that some of them (located outside cities and towns) may be difficult to reach by public transport.
If you really want to save some money and are prepared to rough it a bit, you can skip the camping grounds and find a nice spot for your tent yourself - the right of public access allows you to camp for one night without the landowner's permission, provided that you observe a few simple, common sense-rules. For instance you are not allowed to camp within eyesight of a house or light a fire in dry conditions.
Eating out can be relatively expensive in Sweden, but if you make lunch your main meal you can save some money: many restaurants offer a set lunch menu ('dagens lunch' in Swedish) with a few different alternatives for about 10 euro. A non-alcoholic drink, bread and some salad tend to be included, as well as coffee or tea.