Hostels in Sicily are usually much cheaper than B&Bs and hotels and offer private rooms as well as dormitories. The prices start as low as 10 euros per bed, but that all depends on the season and location and availability.
Hostels in Sicily always have some selfcatering facilities, shared bathrooms, internet access, TV and laundry. Some of them are able to provide breakfast and often are a good source of local info. There are quite some hostels on the island, mainly in Catania, Palermo and Syracuse, and even in posh Taormina. All hostels are neat, clean and tidy, and a great solution for all travellers who want to experience Sicilian life, are attending a language school, or just want to make new friends easily. All hostels provide good service, have superfriendly staff who will tell you where best to eat, organize pub crawls, events, excursions, trips and tours, music courses, pasta parties, cooking classes and more. Some of them, like Giannihouse in Giardini-Naxos, offer family rooms - for all those parents and kids who prefer to spend their (maybe a bit tight) budget rather on pizza, pasta and sightseeing than a luxurious roof over their heads.