5 Challenges of Living in One of the Most Expensive Cities

Learning Outcomes:

• Learn about ways to save money while living in New York City.
• Explore transportation costs and options.
• Learn how to file an income tax return.
• Understand taking out a student loan and getting a mortgage when purchasing a home.

Introduction

Few cities are more expensive than New York City. While some areas of the city are notably more expensive (Manhattan and parts of Brooklyn), the rent is too damn high everywhere! Whether you live with family or friends or by yourself, you likely face significant housing costs. According to Zillow Rentals (n.d.), the average monthly rent in Queens—LaGuardia’s home borough—is over $3,320 in 2025. Some areas of Queens are more expensive than others, with rents rising sharply in Astoria and Forest Park, while average rents have declined in Jamaica. Cea Weaver, an organizer with the statewide Housing Justice for All Coalition who fights for greater tenant protections, claims that “the rents are really high, and I am like, okay, great. Like what’s new? Rent is high in New York and politicians are doing absolutely nothing about it” (Bocanegra, 2023).  Given this unfortunate reality, this section focuses on how to control costs in your life and how to perform some common financial tasks, such as opening a checking account or taking out a loan.

Ways to Save Money While Living in New York City

The following list identifies which expenses offer you the opportunity to save money, including some with support from LaGuardia.

• Transportation
  • Walking is free if you are able.
  • The bus and subway are not free but relatively affordable. A single ride costs $2.90 but the MTA provides options to save money

• Food
  • LaGuardia CARES maintains a food pantry and can assist students in need of public benefits.

• Entertainment and activities
  • CUNY Arts provides CUNY students with free and discounted access to NYC’s amazing cultural institutions.
    • Theater Development Fund (TDF) for discounted Broadway tickets.
    • Free admission to many museums.
    • Campus Life maintains an events calendar and info about clubs and organizations that you can join.

• Explore the city! There is so much to experience in New York City, and much of it is free! Find a quiet spot in a city park, explore the amazing diversity of the neighborhoods, visit one of our many water fronts.
  • Explore New York City Parks such Central Park or Flushing Meadows Corona Park
  • Walk the High Line or across the Brooklyn Bridge
  • Take the Staten Island Ferry
  • Go to the New York Public Library (Main Branch)
  • Visit the waterfront at Brooklyn Bridge Park or Rockaway Beach and Boardwalk

Transportation Costs

Walking is free if you are able. The bus and subway are not free but relatively affordable. A single ride currently costs $2.90 but the MTA provides options to save money. Calculate your transportation costs for one month and ask yourself a few questions:

• How often do I need to commute to school or work?
• How far is my average commute?
• What is the most cost-effective mode of transportation? Here are some options:
  • Public transportation (subways and buses)
  • Walking
  • Citi Bike or your own bike
  • Taxi or other car service
  • Drive your own car

Use the following table to calculate and compare your transportation options over the course of one month:

Income Tax

With the beginning of each new year comes income tax season—that time between late January and April 15 when almost all American households and most students have to file a tax return. It’s not too early to get a grip on your taxes.

Get help with your taxes for free:

• Ask a friend or search online to see if tax preparation services are offered in your area (for example, at libraries, community centers, churches, or clubs).
• If your income is $53,000 or less, or if you have a disability or are a limited English speaker, you can get free tax preparation assistance at a Volunteer Income Tax Assistance (VITA) location near you.
• If your income is $60,000 or less, you can use free tax preparation software, provided by the Free File Alliance and accessed through the Internal Revenue Service (IRS). If your income is more than $60,000, you can still download free tax filing forms through the IRS.
• You can always file your own tax return, on paper or electronically.

Not sure you need to file at all? Depending on your age, income, and/or filing status, you might not technically be required to file a return. The IRS has guidance to help you decide whether you need to file. Even if you’re not required to file, it might still be a good idea. You might receive a tax refund, or you might be eligible for tax credits.

(Schlachtmeyer & Sieminski, 2014; Sieminski, 2014)

Loans

As a student living in an expensive city, you may need to borrow money to pay off your debts. Most students have two main options for student loans: federal (government) loans or private loans from banks, credit unions, and other lenders. You should research all your options for federal loans, also known as Direct loans, before shopping around for private loans.

Types of loans:

• A Direct subsidized loan is a federal loan for undergraduate students. You don’t get charged interest while you’re in school. It is need-based, so whether you qualify depends on the information that you submit on your Free Application for Federal Student Aid (FAFSA).
• A Direct unsubsidized loan is a federal loan for undergraduates or graduate students (as long as you haven’t reached your lifetime borrowing limit). You are charged interest while you are in school. To cut costs, pay the interest as you go.
• A Direct PLUS federal loan is for the parents of undergraduate students, or for graduate and professional students. You must pass a credit check to get these loans.
• Private loans are offered by banks or credit unions. You should shop around for the best offer you can find. Students generally need a parent or other family member to co-sign.

Watch this video:

Steps to getting a federal student loan:

• Make sure your FAFSA form is complete and submitted.
• If you have selected a school, follow the instructions in the financial aid offer or ask the financial aid office. If you’re still applying to schools or waiting for responses, hang tight until you choose a school.
• Before you can get the loan money, you must complete entrance counseling and sign a Master Promissory Note. Learn more from the Department of Education.

Steps to getting a private student loan:

• Talk to your school’s financial aid office. Most lenders require a form from the school certifying that you need additional aid to cover the cost of attendance.
• Line up a co-signer. Most private student loans require one unless the borrower has positive credit history. Co-signers are legally responsible for repaying the loan if the primary borrower doesn’t. You may want to consider loans that offer “co-signer release” after a certain number of on-time payments.
• Shop around for lower interest rates and flexibility with repayment. Your credit score can take a hit from multiple credit applications, also known as “hard inquiries.” To reduce the impact, try to complete all applications within a two-week period.
• Don’t use a credit card. It can be a much more expensive way to finance your education. Credit cards do not provide the flexible repayment terms or borrower protections offered by federal student loans.

(CFPB, n.d.)

Mortgages

At some point after you start working and saving money from your salary or wages, you may want to purchase your own home. The Consumer Financial Protection Bureau provides guidance on how to get ready to buy a home, shop for the right mortgage, and make mortgage payments:

• Ready to buy a home
• Shopping for a mortgage
• Checklist for making your monthly mortgage payment

Key Takeaways:

• We have more control over some expenses, such as transportation, than with others.
• Consider all of the factors that contribute to your transportation costs, financial as well as mental and physical.
• There are two main types of financial institutions in the United States: banks and credit unions.
• A Direct subsidized loan is a federal loan for undergraduate students.
• A Direct unsubsidized loan is a federal loan for undergraduates or graduate students.

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References

Bocanegra, M. (2023, February 9). Rent in NYC is really high. Gothamist. https://gothamist.com/news/rent-in-nyc-is-really-high

Consumer Financial Protection Bureau. (n.d.). Choosing a loan that’s right for you. Retrieved February 6, 2025, from https://www.consumerfinance.gov/paying-for-college/choose-a-student-loan/

Schlachtmeyer, L., & Sieminski, D. (2014, February 10). Getting a grip on income tax season. Consumer Financial Protection Bureau. https://www.consumerfinance.gov/about-us/blog/getting-a-grip-on-income-tax-season/

Sieminski, D. (2014, December 23). Tax season is here. Consumer Financial Protection Bureau. https://www.consumerfinance.gov/about-us/blog/taxtime2015/

Zillow Rentals. (n.d.). Average rental price in New York, NY & market trends. Retrieved January 8, 2025, from https://www.zillow.c99999999om/rental-manager/market-trends/new-york-ny/