One week in Switzerland to do day hikes.

I mostly clicked on your post because you haven't gotten any replies yet - unusual for this forum. All I know is Switzerland is very expensive. We have done some hiking in the French Alps near Megeve and it was lovely but not easy to find and follow the trails. We had directions from a local and a French person with us and still got lost. Good luck!

.<..I know I have heard Rick Steves talk about a great hostel in Grindelwald, and wonder if it might be an option.>>

Rick Steves talks about a hostel, and much else, in Gimmelwald. He is careful to say that this is a different place from Grindelwald (opposite sides of the valley), and that while he loves Gimmelwald, he doesn't care for Grindelwald at all (and, except to clarify that it's a different place, he doesn't otherwise discuss it in his book at all).

Note that his love of Gimmelwald and his hostility to Grindelwald are NOT shared by everyone, to put it gently. I've never been to Switzerland, so I have no personal comments about either one. But look at some other books, and search on this Forum, to see what I mean.

Hiking in Switzerland is fantastic - the views are unreal and the trails well-marked for the most part. You really can't go wrong whichever mountain you go up! We have hiked mainly in the region around Valais - Zermatt, Mont Fort, Rhone Glacier, Sanetsch Glacier (remote and stunning!!), Verbier, Nendaz - and the easternmost part of the Berner Oberland, Kandersteg. All of these areas offer simply spectacular views. All are accessible by public transport, some easier to get to than others, and are well-worth your time.
Last summer we spent three weeks in the area during the month of July and were able to catch the last day of The Alpenhorn Festival, which was truly an experience in Swiss culture. Hundreds of alpenhorn players from all over the European alps, playing their horns on the grassy alps, with the mountains as a backdrop - I'll never forget it. Don't know if you're there on the right dates but your kids would really enjoy it. Music, traditional costumes, food, local crafts...really a great experience.

Yes as Harold says you need to be careful about Gimmelwald versus Grindelwald. The former is a tiny hamlet perched on a mountainside, much loved by RS. The latter is a larger village/ski resort min the next valley over, rejected by RS as " touristy." We have stayed n Grindelwald and Mürren ( the next village above Gimmelwald and like both. Apartments will be easier to find in Grindelwald,

The Berner Oberland area is our favorite home base for being surrounded by the alps. Gimmelwald is a small village on the mountainside, mostly quiet and cows; or Muerren is larger town slightly above that, with more hotel and restaurant options; both have fantastic views as you face out across the valley to the Eiger, Monch, and Jungfrau peaks. Down in the valley, Lauterbrunnen is a town that's more central for taking excursions up either neighboring mountain. You can also view Rick's TV shows for this region online.