I've made it one of my goals to have a cheap, awesome summer making the most of the great outdoor/cheap/fabulous things the city has to offer.
Mondays from 2-3:30pm in Bryant Park- free knitting classes sponsored by Knit New York (a hip boutique in the Union Square area with great yarn and yummy treats). These classes are running from June 11 thru September 24. You must call the RSVP a spot, but it looks like all levels are welcome. I haven't made it yet, but it's definitely on my to-do list and I'd love some company.
More info on the Bryant Park website
Also, the Knit New York website
Also, on knitting... this is in my YouTube top five list.
The Last Knit