In all candor, cheap hotels are extremely hard to find anymore in Amsterdam. One star hotels often entail "roughing it". Rooms at many hotels often go for hundreds of US dollars a night. A 3-star hotel might run you in the $120-150 range, given that the US dollar has lost a tremendous amount of purchasing power since 2002. You haven't stated a target cost per night but I'll give you my proverbial "two cents" here.
First, do some research at www.bookings.nl and see what meets your price ranges. Beware of shared bathrooms and run-down premises. See if a free breakfast is provided. You have 3 people in your party so I don't think you're looking to rough it. Where bargains can be found is outside of Amsterdam in the outlying communities accessible by train. Alkmaar (pronounced Aly-mar) is 22 miles from Amsterdam and offers some excellent hotels. I stayed at Hotel Staad en Land in Alkmaar, just a two minute walk from the train station. It was an excellent rate with a gracious staff. Go to http://www.hotels.nl/en/alkmaar/stadenland/ for details.
Sometimes you will find excellent deals at 3 star or 4 star hotels (international hotel chains) near the Amsterdam Schipol Airport. There is free shuttle bus service to and from the airport. The time to get from the airport directly to Amsterdam Centraal Station via train is just under 25 minutes normally. There are some hotels that are out in the boondocks, relatively speaking, between the airport and Amsterdam. While their rates might be favorable, they are off the beaten path and you don't want to have to pay for taxi rides.
Within Amsterdam you'd probably need a 3 star hotel. Hotel Ibis has a few locations in Amsterdam (one next to the Amsterdam Centraal train station) and offer a fairly good breakfast, a private shower, and decent accomodations. Not a lot of elbow room necessarily, when compared to USA hotels, but more than adequate. There are many "e-opinion" websites out there where international travellers report in great detail on their opinions of hotels in the metro Amsterdam area and outlying towns. I'd recommend you perform some "due diligence" there.
Travel expenses are much lower in Holland from October through March. Hotel prices for "high season" are routinely much higher than for "low season". Same for airfare and other major cost drivers. I'd recommend you try to travel in October/November or March if budget concerns are key.
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