Video by James Harrison, Molly Ellen Miltenberger
Some New Yorkers are making sacrifices and getting creative to dodge the dipping economy in a notoriously pricey city.
article by Whitney Coleman
The concept of Jack’s 99-cent store is almost blasphemous to Midtown Manhattan’s sacred consumerism.
But cash-strapped residents are flocking to its neon sign. The discount shop is just as packed as the high-priced alternatives lining New York streets.
Jack’s shoppers are out in droves to battle the rising prices stacking up on already steep living costs. Other New York buyers are sticking to their tried-and-true money-saving methods to stay afloat in the sinking market.
Katarina Tatanoga, a student who works part-time at a bookstore, considers herself an expert in New York bargaining.
“I am the best one… at finding different deals. I spend almost nothing, but I have everything,” she said.
Tatanoga says her trick is as simple as thinking ahead. She picks up coupon books at Walgreen’s and Duane Reed stores. She said there are many offers and deals available; it’s just a matter of finding them.
“No matter where I go to shop, no matter what I need, I always just check everything in advance,” Tatanoga said.
Wilbur Gray, a hotel doorman and seasoned New York resident, took on a second job to bolster his income when food and gas prices began to rise. He said he reduces gas costs by parking his car and taking public transportation to work.
His grocery shopping has become a dismal affair as well, especially in small, expensive city stores.
“The amount of stuff I used to take home is less now, and I’m still spending more for less,” Gray said. “I try to save some of the money from one of the jobs and the rest pays the bills.”
Even with high costs that threaten to get worse—or maybe because of them—Americans are not thinking about saving for the future.
The concept of “saving money,” in many Americans’ minds, has been limited to coupon clipping and bargain shopping lately. Long-term savings or retirement plans are more than current budgets can bear.
A new report on U.S. family finances from the Federal Reserve Bank shows that the proportion of saving Americans fell 3 percent to about 41 percent between reports. This is the first time since the Great Depression that the savings rate has been negative for an entire year, meaning that Americans are spending more than they have.
This type of spending reveals changes in the nation’s consumer mentality. Courtney Davis, manager for a Boston think tank on food issues, said in an MSN Money report that this reflects a distinct shift from the spending habits of previous generations.
“What our parents saw as luxuries, people our age see as little indulgences,” Davis said in the report. “My mother would never spend $5 on coffee. Some people do this every day.”
Buyers must get creative about stretching fewer dollars across more expenses if they dream of tucking away any surplus in savings. The American Savings Education Council (ASEC) is continuing to stress the importance of that piggy bank—an even less popular idea for Americans struggling to afford weekly living costs.
Some consumers are catching on to the saving concept. Bryan, a bicycle taxi driver, said his saving efforts boil down to putting money in his bank account as soon as he makes it.
“I do not try to have my money with me,” Bryan said, “because every time you have your money in your pocket, you spend it more easily.”
Though New Yorkers may react differently than the rest of the nation to these economic woes, they are not unaffected.
The Economist predicts that the economy may weaken even further in 2008 and possibly continue into a recession, which could mean the birth of even more creative cost-cutting methods.
