Literally, “Camina con los codos” means “He walks with his elbows.” It refers to a cheap or miserly person. I assume it means he’s so cheap he doesn’t want to waste his shoes.

He likes to walk around badly dressed
Cuz it’s cheaper that way
And he says that four rags
Ain’t gonna change his style
He’ll walk 30 blocks
To get to work
Looking like a dishrag
But he doesn’t pay for the bus (Chorus)

That’s why everyone says
He walks with his elbows (He’s really cheap)

To save on electricity
At night he uses a candle
Even though he reads a novel
And he’s straining to see with his glasses
And he won’t throw away his shoes
Even when they’re totally falling apart
He doesn’t wear a jacket when it’s cold
Because the price doesn’t inspire him (Chorus)

If you notice him squinting
It’s because he’s nearsighted
But forget about him buying eyeglasses
They’re too expensive
And if he passes by you
He’ll act like he can’t speak
It’s that he’s trying to save his greetings
He thinks they’re too costly (Chorus)