r. . welcome to "on the money." stocks recover but new worries surface. where do we go next and what should we do? the sweet smell of success. how someone is trying to change its image and the amazing rise from hooters to corner office. shopping for school, the unusual items parents are asked to buy. back to school lessons for your kids. "on the money" starts right now.

here's a look at what's making news as we head into a new week. the american consumer is turning cautious. retail sales, one of the most widely watched bits of information when it comes to the economy is flat in july. that's below what analysts had been expecting. americans spent more on food and clothing but less on cars and department stores. consumption is closely watched and makes up more than two-thirds of the economy. retail earnings weren't too high either. macy's missed expectations, walmart matched, and kohl's and nordstrom lost and jcpenney came in ahead of expected. the sdou tudow turned positive gains on tuesday and thursday. stocks were mixed on friday. if you were smart enough or lucky enough to buy a class a share of berkshire hathaway, you now have $200,000 to your name. the stock crossing the barrier. by far, the most expensive of any stock trading in the united

states. ge confirms its in talks to sell it's appliance business. in the talks, electrolux. stocks seem to have gotten past a rocky past over the past few weeks but that doesn't mean it's not a smooth ride for the rest of the year. there are new worries out there. what does it mean for your money? joining us, ellen zintner, and christine hooper, welcome to both of you. >> thank you. >> do either of you feel like we dodged a bullet here? looked like a pullback and things were humming along again. what do you think happened? >> i think this is the normal volatility we see when we have geopolitical events occurring in the back ground and then you get a day of bad data and then a day of good data. it seems to me this felt like your normal volatility and not

the start of, say, a selloff because there's not been -- if you look at the domestic economy, what's going on in the u.s. there's not been a catalyst to say this would be the start of a pull back. >> christina, it's been an awfully long time since we've seen even a 10% pullback. >> that's correct. it makes sense given we have a fed supportive of stocks. so that now that we're anticipating something of a handoff or reduction in accommodation, the start of fed funds, rates being hiked in 2015, we might see more volatility, but doesn't look like there's a significant correction on the horizon because macro economic data continues to improve. >> we did get a few things that concerned a lot of people this week, though. one was retail sales being lower than expected. then we heard from some chains. some of them -- macy's, mcdonald's and others saying they're conditionered from the consumer. how do you explain that? >> it's a tale of two worlds. those who benefitted in the post

global financial crisis but that's contributed to asset inequality and income inequality. the higher end consumer is doing fairly well. other consumers are struggling more. they haven't fully participated in this recovery but they have done some things to improve their balance sheets, including deleveraging. household service debt rate sheets have decreased, interest rates are low and the kind of debt they're taking on thus far is more cap ex, so it's lower interest rates. so, what they are poised for over the long term is better consumer spending but we don't expect very robust spending from most consumers given that we're still working out the kinks in this recovery and they haven't fully participated in it. >> ellen, how big of a problem is it? the consumer makes up two-thirds of the economy. >> that is a big piece of why the u.s. economy has had subpar growth for so long. so, as christina pointed out, we don't have participation across

all income groups in the consumer spending cycle. and where the rubber really hits the road is wage and salary growth. that's what matters to the lower income groups. that's what drives their spending. and we've had sluggish wage and salary growth so far because we've had a labor market that's been slow to recover. the retailers you mentioned, retailers that cater to the low income consumer. it's sort of a no-brainer why they continue to report sluggish results. >> that's something the fed can't fix, though, because everything they've done has helped the high end, has not helped the lower end and it's participately hurt savers, people on a fixed income. you think the fed won't raise rates until 2016. >> we think it's a much more cautious fed than other players in the market might believe. we also think when the fed goes to raise rates, as they want to right now around mid-2015, they're not going to be able to. they won't be able to communicate well to markets and market volatility or tighter

market conditions will lead janet yellen to delay. >> this is an interesting conundrum. the fed is stuck in positions and people can't figure out if the move is for rates to tick higher or lower. not because of what the fed is doing but how the market looks at things and how the bond market drives things. >> absolutely. but what we do know is the fed is committed, despite the fact monetary policy is a blunt instrument, not a surgical tool, we know the fed is committed to support this economic recovery. when they decide to increase rates, whenever it is, it's going to be because they looked at a big mosaic of economic data and they feel comfortable the economy doesn't need more support. >> what does the investor do at this point. is that an argument for stocks? >> it's all about time horizons. for the investor that has a long enough time horizon, they need to have adequate exposure to stocks and other asset classes that are going to help them meet their long-term goals. it's matching time horizons with

goals and asset allocation. >> what does that mean if i'm looking at investments over the next five years? >> that means you need exposure to stocks, especially if you need to fund retirement or in education. what we're seeing right now is several cohorts of investors that worry us. there are those incredibly risk averse. they are sitting in cash and levels of cash that are high. cohort of investors that wants to be in it, that has watched this five-year bull market, experiencing feelings of regret but they don't know when to get in. they're waiting for that correction. then notice cohort that's in it but not committed to it. we see that in the flow data where there are significant moves out at the drop of a hat at the first signs of trouble. we need those co-hoerhorts of investors to get more comfortable with this market and have that adequate exposure that enables them to meet their long-term goals. >> thank you for coming in today. >> thank you.

up next, we're "on the money." cinnamon going beyond the mall. the billion dollar bun and signature smell hitting new products and partnerships. later, back to school shopping is in full swing. may you may be spending more than ever to support your kids' school. right now as we head to a break, take a look at the stock market will head into the week.

scinnabon is a taste and smell customers remember. cat cole is president of cinnabon. thank you for being here.

>> my pleasure. >> i licked half the frosting off of that one. >> as you should. >> it's great. i see what you're doing with these brands. how many brands do you have outside of what we would normally think about with the blue box? >> we have the normal blue box and additional 70 consumer packaged goods sold in about 60,000 points of retail distributions and that's about wig partners like pills bury, kelloggs and many more. >> highway do you come up with these ideas? >> the ideas come from many different directions. one would be our development partners, so we rely a lot on our partners to bring us ideas on innovation. pil pillsbury is much bigger than cinnabon so we rely on their expert but we are part of indulgence so we have become excellent at being and looking at market insight analytics and valuable expertise.

>> i imagine you have to have some flops when are trying different things. >> yes. >> what's something you threw out before you even tried it and what's something you tried and it didn't take off? >> one item that was our early, early venue of licensing, our early forray of licensing, we had a cinnabon lip balm. >> i would think that would be good. >> sounds yummy. it just wasn't a big enough connection to the consumer so really warrant the continued effort. >> but you're not afraid of taking chances and taking some risks. >> no, no, not at all. we do it all the time and we celebrate failure. >> we celebrate failure. what does that mean? >> at cinnabon we have a culture of experimentation so we challenge our partners to bring us whacky idea. we even launched a pizzabon which does a pizza roll, no frosting, sounds odd, not totally in line with the brand. we did test it.

it was not successful but we learned a lot from it and that was more valuable than the product success. >> i would say the failures probably teach you more than anything along the line. >> no question. >> we love stories about unusual paths to success. you have one of those. >> yes. >> you very famously started out as a hooters girl. in college going for an engineering degree. >> yes. >> you quit college. why? what happened? >> i had started traveling all over the world to help hooters open their new franchises overseas. i was lucky in that i joined a growing restaurant company. hooters happened to be expanding globally. at the same time i was in college they were looking for key employees to train new staff in these new restaurants. i was chosen because i had worked every job in the restaurant, a cook, a dishwasher, a manager, a waitress, a bartender, you name it, i had done the job. i was an obvious selection to go be a part of this team. i came back from australia from

the first time opening that restaurant when i'm 19 and i thought, this will never happen again. it's a once in a lifetime experience. i'm going back to college and follow this typical path. and 30 days liter they asked me to go to mexico and then i was in south america and it quickly became a clear passion and something that i loved and was very good at. i was also failing college because i was gone so much, so i had to make a choice. the choice was to drop out. luckily it turned into a wonderful, progressive career in managing and financing. >> you got your mba without getting a college degree. >> i did. some program -- some colleges have a program, it's very rare, if you have enough business experience, some college and you are able to score really higher than average on the gmats, they have to manage their risk of atte attendees, i passed the gmat with no notice and got letters

written from other ceos and passed the interviews and they took a chance on me, which is rare. i'm so grateful of georgia state for doing that for me. went through the program, graduated just two months after i was at cinnobon as chief operating officer. >> do you take a chance on people. >> i definitely two. i employee intrapra entrepreneu members. i am the beneficiary of others believing in me more than than i believed in myself. it allowed me to rise to the occasion and i expect that of my people. i also hold them to a very high standard because i know what they're capable of. >> we've been talking about these cinnabons and they're delicious and they lure you in and they're lots of calories. do you actually eat these? >> i eat them more often than anything thinks.

i have a healthy dietary which is clean and then i indulge and i love it. >> thanks, cat. up next, we're "on the money." parents gearing up for back to school buying notebooks, pencil, and paper towels? unusual items schools are asking parents to pick up this year.

second biggest shopping season after christmas is upon us. it's time for back to school, believe it or not. teachers' shopping lists are longer than ever and it might surprise you what they're asking for this year. teacherlist.com founder is here, a national online platform that hosts more than 500,000 school supply lists. thank you for being here. >> thank you. >> 500,000 school supply lists. so you know what's happening. >> we do. it's all current, 2014. >> you saw a 29% increase in what teachers are asking for? >> it's climbing rapidly. a lot of school budgets are passing onto parents and parents are picking up the bill. >> what kind of items are they asking for? >> the basis are still the same, notebooks and pens and pencils but what's growing are extra items like hand sanitizer, kleenex. >> wow. >> no one is learning with those but the classrooms need those. >> i'm surprised to see the

increase between last year and this year. i would have expected that closer to 2008-2009 when we were in the midst of a financial crisis. what's causing that now? >> i think the financial crisis is over in the larger economy but schools are under as much pressure as ever. so that pressure goes right to parents. >> with more items on the list, is that good news for retailers? does that mean they'll see a little boom -- >> for sure a lot of dollars the schools spent industrial at the school level is now passing to parents and then retailers. folks like walmart, target, amazon, they'll see more shoppers. >> how do people most of the time do back to school shopping. i think about my household and i rarely get out to stores. i order a whole lot of things that show up in boxes. >> it's tricky to do that with school supplies. >> you stand in the store and check it off? >> yes. that list is driving the sales. >> are there ways parents can find bargains to get a better

price on these deals? >> that's the best news that's come out of this. this time of year has become a bigger time for stores, the stores are now competing for parents shopping. like christmas, it's like black friday. if you're looking for deals this time of year, you can find them. coupons, end of aisle rack deals. >> the stores figure if they get you, they want to keep you there, if you're buying for back to school? >> if you can buy everything else you need in jeans and shirts. >> it's a big time of the year. >> you got it. >> when it comes down to parents being able to buy all this and afford all this, if there's a 29% increase, how is that going to impact most families? >> that's the hardest part. especially if schools aren't well off. we certainly don't want kids in class without pens and pencils and notebooks. that can't happen. most schools are being careful

with their list. the biggest increase is coming where parents can't afford it. those lists are growing. >> thank you for joining us today. >> it was my pleasure. >> again, tim sullivan. up next "on the money" a look at the news for the week ahead. we're taking your kids to school. the money dos and don'ts. because it gives me zero heartburn... annc: prilosec otc the number one doctor recommend frequent heartburn medicine for nine straight years. one pill each morning 24 hours zero heartburn.

for more on our show and our guests, and you can follow us at

twitter. here's stories to impact your money. quarterly results from home depot, lowe's, gap. a lot of news on tuesday. first up the consumer price index. also, housing starts for the month of july. google will be celebrating the tenth anniversary of its initial public offering. wow,ist been ten years already? tuesday is the deadline for bids for the recently bankrupt crumbs bank shop. the federal reserve will release july notes from fomc meeting. results from the latest international test of financial literacy this summer showed american teens have a lot to learn when it comes to money. 1 in 6 didn't even reach baseline level of proficiency. no matter how old your child is, there is a lesson you can teach them before they head back to school. sharon epperson joins us with or on this. i have to think at every age there are things kids should be learning. what about elementary school? >> we both have young children.

my daughter is in elementary school. one of the first things you can teach your child is how to earn money, earn an allowance. whether that's doing chores around the house or help them set up a lemonade stand, show them the importance of earning their own money. pen you need to teach them how to spend that and save it, make good choices. what do you spend your money on? do you spend it on what you want right now or need to have right now? >> saving things. if you want that big ticket item, have you to saver for several weeks. >> exactly. teach them how important to save by opening a savings account and going to a bank. >> you have a son in middle school. what are you teaching him? >> one important thing is comparison shopping. he gets on the computer and will look and compare different sneakers from different companies, get the coupon from a coupon website and present to mom, here are the different prices and what i want. i've put it in the clark, can you click and buy? >> oh, that's great, a boy who

loves a bargain. >> he loves comparison shopping, online shopping and sneakers. the bottom line, learn how to comparison shop and get things on sale. it's important to let them know about limits. important part is buying things on sale, i'm not spending more than "x" amount on this and you shouldn't come in either. that comes to play with cell phones. a lot of his friends are getting mobile phones and parents are looking at bills and they're going up. set those limits there as well. the other thing is delayed gratification. you want them at the start of summer, you'll beat them up and i'll have to get you another pair by fall. do you really need them by now? is there something you can wait for or do you have to have it at this moment? stressing the importance of delayed gratification. that's something adults could learn as well? >> i think we could take a dose of that. what about high school kids f you're in high school, getting ready to go to college? >> i think a lot of parents, my friends who have high schoolers, do they even know how to balance

a checkbook? do necessity even use a checkbook. it's important to balance that checking account even if you're doing online banking. it's as simple as keeping all your receipts, even atm receipts, everything you're getting, purchases and line that up with what it says in terms of your account and understanding how to do that is a very, very key lesson. and you also need to make sure that you understand the importance of savings, again, and building up that emergency fund. that's going to be very key. >> sharon, thank you. >> sure. >> that's schote for today. i'm becky quick. thank you for joining me. next week, rose bubbles up business. each week you can keep it here "on the money." i'll see you next weekend. bulldog: it's true! i am a bundle of talent!

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offering quiet comfort. with your help, we can do even more! make a donation at mattressdiscountersdogs.com or any mattress discounters. mattress discounters good deed dogs helping dogs help people. [ticking] >> do you believe that there are people at countrywide who belong behind bars? >> yes. >> do you want to give me their names? >> no. >> would you give their names to a grand jury if you were asked? >> yes. >> we spent nine months investigating our story and asked the justice department about the state of their own investigations. the perception-- i mean, it doesn't seem like you're trying. >> well-- >> it doesn't seem like you're making an effort, that the justice department does not have the will to take on these big wall street banks. [ticking] >> anton valukas was the man in charge of investigating the collapse o