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Best area to stay in San Fran reasonable price for 4

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We are taking our grown children (early 20's) to San Francisco from 8/4-8/11. We thought we would go to Carmel for the 1st two nights and then spend 5 nights in San Francisco. We have always stayed in Union Square but are finding it very expensive and just started looking at apartment rentals. I was wondering if anyone has any recommendations for areas to stay. We will not have a car but love to walk. We would prefer lively areas with restaurants, shopping, nightlife (but also safe for kids to walk at night). Thanks for your help!!

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