By far the best time to visit Denmark is June, as early summer days are long and the weather is warm. Summer, of course, is high season, with July and August seeing the most crowds. September still has warm days, although they are significantly shorter, and the crowds of July and August have thinned. Unless you enjoy dreary days with low clouds and threatening storms, avoid Denmark in February.
Copenhagen isn't cheap, but hostels in Copenhagen tend to be a cut above those in other cities. Many hostel rooms have private bathrooms. Fees for linen add to the price, however. Everything is expensive here, except wandering around the beautiful parks and streets, and perhaps cigarettes. Buy beer in supermarkets or get it for free at brewery tastings. Seek out student haunts or purchase open sandwiches from the bakers or sandwich shops for relatively cheap eats. Public transportation is efficient, but the mighty bike is king in this flat country. You can even rent one for free through the "Bycyklen Kobenhavn" program, as long as you don't leave the city center.
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