How the frum community is grappling with historic inflation rates.

Something’s up. And it doesn’t seem to be coming down.

As inflation continues to strain, stretch, and strangle, the frum community is feeling the pinch in ways that go beyond the headlines, from grocery bills to job security.

A look at the economic realities of the moment.

Elisheva Braun

 

On the streets, everything looks the same.

There are still twelve types of cheese in the grocery’s refrigerator section and a lineup of shiny new cars at the auto mall.

Clothing stores and home decor shops are packed with customers, and Sunday clubs burst with gymnastics and cake-decorating protégés.

The bustle of life and commerce hums on.

Peek inside homes and wallets, though, and you’ll read a very different story.

Mr. Monopoly goes broke

Sara* made $80,000 a year at a construction company. When she was on maternity leave, her boss called and said, “I’m sorry. I can no longer afford your salary.” He replaced her with two young, $25-per-hour hires.

Due to Amazon shutdowns, the e-commerce company that Eliyahu* managed had to close its doors.

Adina* watched her employers struggle to make payroll when her department stopped making a profit. She felt awful seeing her bosses dig into their own pockets to pay her, so she left her job.

Coming off the high of 2020’s covid-19 monopoly money era, business owners and employees face a devastating reality check. And while inflation is a global conversation affecting millions around the world, it seems to have hit the frum community harder than most.

Says The Voice finance columnist Asher Furst, “Even without inflation, the cost of frum living nowadays is so high. Between tuition, kosher food, and housing in frum neighborhoods, expenses are huge. With inflation, people who were okay until now aren’t making ends meet, are strapped, or just have less leeway than they did before. For a lot of families, life has gone from expensive to unaffordable.”

As inflation jacks up prices, in many cases doubling them, salaries are undoubtedly not on the rise.

“The job market has been repressed for about a year now,” says Aviva Barrish, director of job development at Agudath Israel’s PCS New Jersey (Professional Career Services). “There just aren’t enough good jobs to meet the number of people looking for work.”

Yoel Tolwinski, men’s Director of Placement, adds, “In my 20-plus years at PCS, I’ve never seen the job market as bad as it is now.”

Faigy Ort, PCS women’s placement director, explains, “Many industries, like construction, e-commerce, real estate, and mortgages, are downsizing, outsourcing, or even shutting down. Managerial and other high-paying positions are harder than ever to come by.

“Healthcare is growing, though it isn’t booming like it once was. Still, the industry isn’t hiring much locally. In healthcare and many other fields, there’s a huge wave of offshore workers, replacing billers, programmers, customer service representatives, and more.”

During covid-19, companies paid high salaries.

“Businesses can’t afford that anymore. To save money, many companies are replacing their more expensive employees with offshore workers. Many people didn’t get raises this year. Some were laid off,” Faigy shares.

PCS has been booked and flooded for months, testament to an increasing desperation to earn, or earn more.

The accounting industry has been among the least impacted. “If you have talent and a BA, you can find work. Every business needs someone to manage their finances.”

Double-edged crisis

Rabbi Yaakov Yitzchok Trainer, director of development at Tomchei Shabbos, is in the painful position of witnessing the community’s economic decline, one family at a time. In recent years, the Tomchei Shabbos recipient list has grown by hundreds of monthly recipients, reaching the thousands during Yamim Tovim.

Rabbi Trainer identifies two key causes for the dramatic uptick.

“Many are struggling with job loss, unemployment, and decreased revenues for businesses. Since covid-19, unemployment in the community barely existed. Almost everyone had a job. But as of about nine months ago, the job market really dried up. Since Sukkos, over 40 families have joined Tomchei Shabbos—primarily due to job loss.”

While job loss and reduced business revenues have significantly impacted many families, inflation is another factor at play. Like a child’s nightmare boogeyman, it’s sneaking up on families unawares.

Rabbi Trainer explains, “They think they’re managing, holding it together—tight, but getting by. Then, one day, they turn around and realize, ‘Tuition and childcare increased; groceries jumped by 50 percent. Everything costs so much more. My living expenses are tens of thousands more than they were two years ago, and my income hasn’t changed. My credit cards are maxed out; my savings are wiped clean. I can’t go to the grocery store; I can’t pay for food.’”

It seems that inflation is finally tapering off, or at least staying stagnant. Why are so many being hit over the head by a terrifying new financial reality?

Financial pressure has been building up since covid-19, but there were salary raises and government aid to buffer the effect. As the padding wears away, it’s all coming crashing down.

“Until now, families have been managing on borrowed funds, credit cards, and cost-cutting. After living this way for two years, the strain is no longer sustainable.”

The Effects

For many, the past few years were ones of plenty. Some bought pricey homes, others got used to working less or stopping to work, and many are just grappling with the steep increase in living costs. Now, they’re choking.

Faigy shares, “Once-stay-at-home-moms are joining the workforce, their lifestyles no longer viable. Esti, a kollel wife with a great job, was laid off last month. Her monthly mortgage payments are $7,000. With her husband bringing in just over $2,000 a month, the family has no way to pay for their home. We see too many people who can no longer afford their homes, and it’s heartbreaking. What should they do now, move back into a basement?”

“A lot of job seekers come when they’re in emergency mode, drowning in expenses, desperate for a job yesterday. Men, especially, tend to come in needing to make a lot of money, and they may not have the skills or experience to earn it. One man told me, ‘I need to make $170,000 just to pay my bills.’ The problem is that there aren’t many positions that match his skillset and desired salary.”

When Tomchei Shabbos helped over 2,500 families make Sukkos, it became clear that every demographic needed help.

On one hand, there are successful entrepreneurs who are struggling as their businesses face tough times.

Rabbi Trainer shares, “I’m not involved in decisions about who gets approved, but I take a lot of the initial phone calls. I received one before Sukkos from a good friend, a businessman who, until a year and a half ago, was donating hundreds of dollars a month to Tomchei Shabbos. He now needed to get on the list. I was so shaken up that it took days before I could bring myself to call the va’ad to get his family approved.”

In another excruciating call, a young father reached out. His industry is in decline and his business was down by 40 percent.

“I’ve been pushing off calling for weeks,” he said. “But I have to get on Tomchei Shabbos now.”

“I’ll call the va’ad. I’m sure you’ll have no problem getting on,” Rabbi Trainer reassured him.

Silence.

“You don’t understand. When I say I was pushing off calling, I was emptying my house of food. My house is empty. I can’t afford to feed my kids.”

At the other end of the spectrum, “So many families in kollel, klei kodesh, or on lower-tier incomes are suffering. They didn’t have any major life changes, emergencies, or big, unexpected expenses. Until now, everything worked. Suddenly, they can’t make ends meet.”

“In this inflation era,” says Rabbi Trainer, “you can really never know who’s struggling. It’s the typical families, the ones where the parents have standard, conventional jobs. They seem okay; they seem to be managing. It’s such a hidden, secret battle.”

Today, more than ever before, the adage rings deeply true: you never know who’s getting Tomchei Shabbos.

With such widespread hardship, the future seems bleak.

“This year, our budget is at an unprecedented $15,000,000. As Klal Yisrael’s financial Hatzolah responders, we do our best to plug the holes inflation creates.”

The challenges are overwhelming, but still, there’s a note of hope. “Ultimately, the Ribono Shel Olam takes care of His children, and somehow, He’s going to get everyone through this.”

Trends of change

Priority Auto Mall’s Moshe Kramer shares, “It used to be that people came in looking for a specific car. They knew what they wanted, and they didn’t settle for less.”

Now, when there’s a special on a lease, most people will grab it.

“Cars that no one would have touched in the past are now being grabbed up. It doesn’t matter if it’s small or funny-looking—what people care most about is price.”

A look at Lakewood’s roads will confirm Moshe’s observation.

In one young mother’s view, “Shiny new Camrys were once the norm. Now, it’s become a lot more socially acceptable to drive old cars. And the same is true for clothing. This year, I found that the bargain clothing stores were packed. Never before have I seen such long lines at these places.”

Blimie,* the owner of a popular children’s clothing brand, says that stores are seeing fewer customers buying pricey clothes. “In the frum community, people have higher standards and don’t want to buy the cheapest items. At the same time, there’s only so much you’ll pay for quality before you’re just paying for the name. A lot of the more expensive brands are staying on the shelves. High-end products have really been impacted.”

With the cost of living dramatically increased, many families are turning to sales, outlets, and past-season selections.

Another testament to the community’s embracing of budgeting: When The Voice published a recent article about Elegant Vorts—an initiative to facilitate and incentivize affordable vorts—our secretaries were inundated with phone calls from many Lakewood residents who wanted to reach the organization.

These trend shifts may be a welcome departure from materialism, but in contrast to the comfort and abundance most have become accustomed to, these signs of the times also feel like unsettling foreshadowing.

How’s business? Retailers share

Moshe Kramer says the car market has changed a lot over the past few years.

“During the shortage caused by covid-19, prices went really high. Even though inventory has increased since then, the prices don’t seem to have gone down much. New cars are very expensive, which makes used cars expensive too. There’s nothing super cheap anymore, and there aren’t really junk cars available.”

Despite all that, business hasn’t slowed.

“The economy in Lakewood is somewhat insulated, which is why I believe we’re less affected by inflation compared to other areas. The community still needs cars, we all do business with each other, and at the end of the day, people are still buying.

“Right now, it’s about 50–50 between people buying or financing cars versus leasing them. People tend to lease cheaper cars, but they usually buy brand-name cars like Toyota and Honda because these cars retain their resell value.

“I will say that the best time to buy a car is usually in the winter when demand is lower and prices tend to drop a bit. However, because of the shortage, it hasn’t been like that in the past couple of years. The cars we deal with the most are popular brands like Toyota and Honda, which are always in demand and don’t fluctuate much in price. It’s the less popular cars that tend to change in price. Right now, we’re constantly looking to get the best deals so we can pass those savings on to customers.”

Blimie details the realities behind the marked-up clothes we see on shelves.

“There are a few factors that affect the cost of merchandise. First, tariffs on clothing from China have increased, with extra tariffs ranging from 7½–25 percent. While it’s still cheaper to import from China than to manufacture here, these tariffs add a significant cost. Second, shipping container prices have fluctuated. During covid-19, shipping costs skyrocketed, sometimes increasing by 10 times. They went back down afterward, only to rise again due to limited production.”

The biggest impact, though, has been the increase in labor costs, both in China and the US.

“After covid-19, workers in both countries are earning 50–100 percent more than they did before. It’s not just about the cost of material, it’s about the labor that goes into making it, including skilled workers, designers, and production teams. During the pandemic, many people received government money and didn’t want to work, so companies had to offer higher wages to get people to come back. Even though the market has stabilized, once wages went up, they aren’t coming back down.”

Says the manager of a large local grocery store, “It’s no secret that prices have gone up, and grocery stores are suffering just as much as anyone.

“There’s only so much you can go up on products, and we’re paying more for most of the things we buy today than we did four years ago. The margins are getting thinner and thinner. We’ve also had to raise the minimum wage from $9 per hour to around $16 per hour. And workers don’t want the minimum wage—they want more. On top of that, utilities and insurance costs have skyrocketed. Running a business is expensive, but we do our best to keep prices fair and continue helping our community.”

Turning a profit is difficult in the supermarket space.

“Some of the supermarkets in town give away over 100 items in specials weekly, at—or just above—cost price. The purpose is to help those who can’t afford it; people should make use of sales. We’ve had people come in saying they can’t afford food, and we gave them gift cards until we could connect them with an organization.

“Many supermarkets offer discounts to mosdos that buy gift cards for their rebbe’im and teachers. These rebbe’im and teachers also often buy a lot of items on sale, which is understandable. However, it’s important to know that we lose money on these purchases as part of our tzedakah.

“People go to stores like Aldi’s and post the prices, pointing out how much more heimishe stores charge. It’s simply unfair to compare local supermarkets with four or five locations at most to national superstores with hundreds of branches like Aldi’s or Costco. We do the best we can.

“Times are hard,” the manager concludes, “but we will continue to offer specials and support with tzedakah and do our best to provide affordable food for the community.”

Getting a job

In a relatively short sliver of time, the landscape morphed from an employees’ market, where business owners were desperate for workers, to an employers’ market. Not everyone realizes this.

From behind their desks, Aviva and Faigy have worked with hundreds of employers and employees. They share the unfiltered advice every candidate in today’s job market should know.

“People ask about the perks and benefits before they even understand the role. New seminary graduates or newlyweds sometimes ask to work just from 10:00 a.m. to 3:00 p.m., which is totally unrealistic, especially in today’s environment,” says Aviva.

In general, employers want workers who will put in full days. “Nine to three has been adapted by most employers as the new full day, accommodating the Lakewood playgroup/babysitting schedule. Anything less than that is hard to come by.”

Remote work is another dying relic of covid-19. “Companies have realized that working in pajamas is far from ideal,” notes Faigy.

“Employers want workers who come in ready to work. This means taking courses and learning skills before you apply for jobs,” Aviva asserts.

In today’s market, having a job is more important than ever, and adjusting expectations can be key to success.

My two cents

Voice columnist Asher Furst, behavioral finance expert and the founder of Geltmadesimple.com, on how families can thrive through inflation

First things first: education is key

Education and one-on-one coaching can significantly improve how you manage your finances. Free resources like the Kosher Money podcast, newsletters, and expert articles, along with coaching programs like Mesila (paid) and Living Smarter Jewish (free), offer valuable guidance.

A financial coach can help you create long-term plans, from daily savings to retirement. They can guide you through budgeting, setting goals, and understanding complex financial products. The added benefit is accountability—knowing you have a meeting forces you to focus on your finances.

For example, when I got married, I was leasing a car because of ignorance and habit, not realizing I was basically putting my money in the garbage. After meeting with a coach, I took cash out of my savings and paid off the car. This helped me day-to-day, as I no longer had to make monthly payments. In the big picture, it saved me a lot because I had been paying 5 percent interest on the loan.

Most of us weren’t taught advanced financial concepts, like investing or taxes, so ongoing education is key.

Making it work: practical strategies to stretch your dollar:

• On coupon chasing: Avoid wasting time for small savings. For example, driving 15 minutes for 10-cent gas savings may only save two dollars, which is less than minimum wage. Consider bulk buying instead.
• Government aid: Research available government programs. Eligibility may have changed, and new resources might be available. Contact organizations like LRRC for help.
• Eat smart: Plan your grocery trips to avoid impulse buying, which can cost more. Bulk buying for categories you use often can save hundreds each month.
• Insurance: Shop around for car insurance. A quick call to an insurance agent can potentially save you hundreds annually.
• Side hustles: Before starting a business, seek mentoring. Assess the market, time investment, and potential returns to ensure that it’s a realistic money-making opportunity.

Pinching pennies

What’s your money-saving secret?

• Spending as if we have no money in savings (even though we do).
• Shopping clothing sales only. Between end-of-season sales, past-season sale stores, and a handful of hand-me-downs, we’re covered.
• Meatless Mondays—lots of chilis and bean soups with bread.
• Packing lunches for work. Takeout is a fortune!
• Even though most of my neighborhood does, I don’t send my kids to clubs.
• Washing and airdrying my own sheitel.
• When we have a clear, measurable goal in mind, we don’t have trouble saving. Have x by x time. Even if we don’t make the time, we’re always putting away for it and will eventually save it up. Lech el nemalah atzul. The ant has a goal. He’s always putting away for the future.
• Temu for the younger kids. Jewish for the older, though.
• Buying what we need.
• Not carrying cash. I find that cash goes like water. I put it in my pocketbook, and it’s gone almost immediately.
• Buying groceries and meats on sale and stocking up my freezer.
• Buying all my clothes at Kohl’s, Temu, and Shein. You’d be surprised at what you can find!
• Moadim L’simchah is a big money saver.
• Keeping my extra cash in a high-yield savings account and CDs. Don’t leave your money in your checking account!
• IRA coming straight off the salary
• When my oldest was two, I opened an investment account with Oakwood Financial that started with $1,000 and automatically deducts $55 from my account every month, and the investment has made a few thousand dollars by now.
• Going to the grocery store once a week. It’s not easy, but by being really on top of it and organizing my menu accordingly, I save money that way. Also, I don’t make myself crazy, but I do take sales into account when shopping and plan my menu with them in mind.
• Buying on sale! With a little foresight, you can save a lot of money.
• My money saving secret is a wonderful organization called Chasdei Lev. We live off the savings all year.

Pinching pennies

Aside from housing and tuition, what’s your biggest expense?

• At least that’s how it feels, I didn’t do the math.
• My therapy
• Supporting my married children
• Food
• Medical insurance and auto insurance
• My three bachurim are dorming; they eat in yeshivah. Bein hazmanim and on off Shabbosim, my food bill is doubled, and it becomes my biggest expense after housing and tuition.
• Groceries
• Groceries
• Food is definitely the biggest expense.
• Health insurance
• Food
• Food
• Food
• (Girls’) clothing, depending on the season.
• Insurance
• Supporting marrieds

Pinching pennies

What would you never skimp on?

• There’s nothing I wouldn’t skimp on. If I don’t have the money for rent, I skimp on everything.
• My cleaning lady
• My high school girls’ clothes. I know it sounds crazy, but I don’t have a choice.
• My gym membership
• Anything that would make my kids feel less than
• When things are very busy, sending my husband’s shirts to the cleaners
• Cleaning help—if they show up
• My therapy
• Cleaning help (the very few hours I actually have). It’s a shalom bayis, parenting, and menuchas hanefesh expense and the effects are immeasurable, even if they don’t last more than a few hours.
• Products that make my life run more smoothly, for example, ready-prepped food every once in a while
• Tzarchei mitzvah, like an esrog, menorah, matzos, etc.
• Produce
• I would never skimp on buying things for the einiklach. That is my greatest joy!
• My cleaning lady!
• We have two cars, and I can’t see myself managing with just one.
• While I try to be reasonable and not spend irresponsibly, I feel that healthy food is something you can’t skimp on. This has become increasingly more difficult with the recent spike in food prices, but I still don’t skimp.
• Cleaning help keeps my sanity.
• Therapy and cleaning help

Then and now

Frumflation prices, 2020 versus today

A book: $24 vs. $28

A children’s coat: $99 vs. $279

A pair of tights: $6.49 vs. $10.50

Basic leather belt: $100 vs. $135

Brewed coffee: $2.50 vs. $3.75

Latte: $3.75 vs. $4.90

Canon camera: $250 vs. $600

Basic Dell laptop: $195 vs. $299.99

A 1-ct diamond ring: $4,000 vs. $4,600

Frozen duck: $4.99 vs. $7.99

Shoulder London broil: $8.99 vs. $9.99

Duck sauce: $2.59 vs. $4.49

Premium cocoa: $3.99 vs. $5.99

6 oz. pastrami: $3.79 vs. $4.99

Shabbos meat: $9.29/lb. vs. $11.99/lb.

Top of the rib: $7.49 vs. $9.99

Eggs: $4.00 vs. $1.50

2020 Toyota Yaris in 2020: $17,750 vs. 2024 Toyota Yaris in 2024: $24,800

2020 Nissan Versa in 2020: $14,730: vs. 2024 Nissan Versa in 2024: $20,652