A car is disadvantage in Manhattan.

Public transportation is excellent and the best way around.

The Jersey people will tell you how long and the best way into Manhattan. If you have the money stay in Manhattan without a car and enjoy it

Where are you going when you leave NY? Are you flying out of there or do you need to keep the car to drive somewhere? If you don't need the car for after NY then I would return it before you get to NY (maybe Jersey City). Then you can take public trans into the city and with the money you'll save not having the car rental you should be able to afford a Manhattan hotel. If you have to keep the car then look for a hotel in Jersey City or somewhere that says it's on the "Path" line which is the subway into Manhattan (But know that the Path line and the 'subway' - what most people call the metro, are not the same - i.e. you need separate tickets.) You definitely don't want to drive in Manhattan, and public transportation - the subway - is easy to use to get around. First timers like to stay around mid town / Times Square. Not at all the most charming part of the city but with only two days and your first visit I would probably say stay around there.

With 2 kids that age I would do my very best to stay IN Manhattan. They won;t want to trek in and out each day - and you don;t want to have to end the day if they get tired and want to rest in the afternoon. Agree to dump the car and use the money against a hotel in Manhattan.

How many of you ar there altogether? the Beacon hotel and the Affinia group all have suites at moderate prices that can accommodate a number of people (is it just you and 2 kids?) And with kids that young you will want at least a mini-fridge and preferably a kitchen - so you can easily do drinks and snacks - or even breakfast in the hotel (saving on food costs).

If you do decide to stay in NJ make sure you are right on top of the PATH (taking the bus into the city can take forever and is not a realistic option with little kids). And there is NO SUCH THING as the Metro in NYC. What we have is a subway - and if you call it a Metro no one will know what you mean.

Also, Statue of Liberty is closed for restoration - although you can get a decent view from the free Staten island ferry. And ESB is a really bad idea due to lines that can be interminable. Instead do Top of the Rock - which allows you to buy tickets for a specific time - with no waiting. Times Square is OK - but might be overwhelming for the kids. I would focus on things they will really like - Central park with the small zoo, the Museum of Natural History, etc.

Public transit in NYC is the best in the country and more than adequate for your needs as a tourist. You may also take an occasional taxi if you or the kids are really tired, but the subway will generally get you places much faster in Manhattan than any other form of transit, even including the wait times.

There are a handful of lodging options. 1) You can drive in and park in Manhattan, but that will cost you about $40 per day in addition to the hotel room. 2) You can stay at a hotel in Long Island City in Queens, which is exactly 1 subway stop from Manhattan and very convenient. A handful of hotels there have very limited free parking (as in 6 or 8 places). 3) You can stay in a hotel in NJ and take public transit into the city, but you need to budget for up to $20 or so per day for that, which would be in addition to the cost of public transit in Manhattan. 4) You can just park in NJ in a park-and-ride lot but stay in an NYC hotel.

The one thing I'd warn you about is traffic on Sunday evening. It will be bad coming into the city, so be prepared for that. Good luck.

The real difficulty here is that not all hotel rooms in Manhattan have 2 double beds or even room for a rollaway, so you do have to choose your hotel carefully. You can use Hotwire to get a room that will accommodate 3 people (though not Priceline). That might save you some money, but the city is now really packed with tourists, so it's going to be difficult to find an inexpensive (i.e., under $250 per night) room that will accommodate the three of you.

There are 4 of us, my adult daughter (the college graduate we are celebrating!) and a 10 and 7 year old, and me! I have to keep car, as am spending Monday and Tuesday, the 21st and 22nd, in New York, then driving to Phillie the 23 to fly out that afternoon. And committed myself to taking all to New York City for first time for all of us, but did not realize how hard it would be to find hotel etc on a budget....just cannot bring myself to spend $700-900 dollars for two nights in hotel! And yet, with only two days to spend there, don't want to spend it all commuting either....ah the dilemma! Thanks, will keep looking and explore your ideas...

I woulds still get rid of the car. You can get to the airport by train. It costs a lot of money (I'm guessing at least $40-$50 per day to park in Manhattan)

First dump the rental car and on your way back to Philly get another one, this will save you well over $100. For hotels, check priceline you should be able to find a hotel for under $300 and with priceline under $200.

The Travel Inn has free parking and should be large enough for all of you. Also it is right out of the Lincoln Tunnel for easy access.

Another good option would be Hotel Grand Union on E 32nd St. Close to the subway and walking distance to Herald Square, Macy's Empire State etc.

Also FORGET about going to the top of the ES, it will take HOURS, instead go to Rock Center to Top of The Rock the view from there is spectacular.

The Museum of Natural History will be a hit with the kids, just off the B/C train at 81st St.

Also Central Park is right across the street, so you might wander through and see the Castle, or even rent a row boat and row around the small lake there.

Ellen's Stardust would be a hit with the kids too, all the servers are wantabee Broadway performers, so you get music with your lunch/dinner and the food is not bad, think dinner sandwiches (the shakes are GREAT).

The kids that age, stay in Manhattan, you won't want to be commuting daily each way you will loose alot of time, and even Long Island is a treck. Find a hotel midtown, like the Hilton Gardens, and you can go back there and relax if needed.

I'd suggest staying across the Hudson River in Weehauken NJ; ferry back and forth and hop on the free shuttle buses that will drop you off in various points in Manhattan. Lots of chain hotels, and crossing the river is calming, cool, and gives you a beautiful perspective of the city.