Hostels are a good option if you want to use less of the holiday budget on accommodation, but still want to stay somewhere comfortable.
There are about 110 youth hostels in Norway, all of them with a high standard of accommodation. The hostels have different sized rooms, everything from single rooms to dormitories and family rooms. They are divided in three categories with star ratings. An overnight stay can cost from NOK 100.
For more information see:
Norwegian family & youth hostelsVIP Backbackers Resorts Hostelling International