Along with a dozen other states, New York is set to increase the minimum wage on January 1st from $7.25/hr to $8.00/hr (with plans to raise to $9.00/hr by 2015). While national discussion is largely focused on a possible federal increase, on a local level, this increase will have a significant effect on thousands of New Yorkers. Since 2009, the last wage increase for the state, the cost of living in New York has steadily increased: rent stabilized apartments have risen each year, between 2.5 and 8% (depending on 1- or 2-year leases); the cost of a single ride on the subway has increased by $0.50, not counting the steep increases to unlimited cards and the addition of a fee for every new metrocard purchase; and basic grocery items continue to rise. According to the Fiscal Policy Institute, the upcoming wage increases will significantly effect on younger adults with hourly-paid jobs who clock in 20+ hours a week and don’t currently have a college degree. In addition to the overall economic boosts that come from wage increases (people putting that extra money back into the economy by way of spending), we can’t help but think that a portion of the population might use those extra funds towards either valuable skills training or higher education.

Are you one of the thousands that will be effected by this increase? Have you decided where your extra money will go?