Kaunas is the former capital of Lithuania and is the second largest city in the country. Kaunas dates back to the 14th century and is a very popular destination for backpackers and travelers because of its culture and atmosphere. It is also a very cost-friendly destination, because the prices of things are low and there are plenty of good quality hostels in Kaunas available.
Kaunas hostels are mostly concentrated in the Freedom Avenue and Old Town area. The hostels in Kaunas are a good source of information when you're planning your days, and there are plenty of information centers around to ask for more details. Kaunas is a very easy place to travel, because information is abundantly available, and most people speak good enough English to get around.
There are many places to see when you visit a hostel in Kaunas, but one place you shouldn't miss is the "Rotuses Aikste", which is the main square in the old town. The old town is beautiful and well worth taking a day to walk around it. There is also a lot of good shopping around the city: the shopping mall in the southeastern corner of the main city area has clothes shops galore, as well as electronics, sporting goods, and some good dining.
It is very inexpensive to eat in Kaunas (a burger meal in a budget place can be as low as 1.2 euros), and something fun you can do while staying in a Kaunas hostel is try the local cuisine or some of the places that serve European dishes. The Old Cellars (in Old Town) is a great spot to have a glass of wine (or a beer) after a day's exploration.