hi, welcome to "on the money." i'm becky quick. he was born on the bayou and saw bad moon rising. would you believe the falling price of higher education? two liberal arts colleges cutting tuition by 40%. how to make sure you don't outlive your retirement savings. teachers helping teachers. the sharing economy from grade school to high school. "on the money" starts right now. >> this is "on the money," your money, your life, your future. now becky quick. >> the dream of going to college is one that grows ever more

expensive. two small liberal arts colleges are announcing a 40% tuition cut next fall. the price of admission is our cover story today. here is an equation for today's college students. the education that they are paying for is 12 times more expensive than a generation ago. the cost of higher education jumped twice as cost as medical costs and three times faster than housing and food. the average college tuition is $31,000. for public universities the annual tab is $23,000 for out of state finishes. in state residents pay more than $9,000. utica college in new york and rose mont college having a tuition reset. a 40% tuition mark down is almost an unbelievable step. how does the math work? joining us are leaders of both schools. dr. todd hutten president of

utica college and dr. sharon hersh. thanks for being here and welcome to both of you today. >> our pleasure. >> thank you. >> todd, the idea of being able to cut tuition by 40% most schools say there is not a chance to come up with that. how do you cut 40%? what is the math? the math is you reduce your tuition and your discount race. the key is you need to guarantee students and family savings. we have seen prices escalate across the country. we have had escalations. our families simply are hitting a ceiling that they can no longer afford. so we are guaranteeing every student and family a minimum of $1,000. next year's freshman will save $6,900 in tuition and fees with 8,000 with room and board. >> when you hear numbers like that the idea that you are going

to cut discounts. i believe rose mont is doing the same thing. that means the sticker price isn't what people were already paying? >> that's it exactly. we realized that we among so many other colleges were going according to a model that was raising the sticker price at the same time that we have to raise discounts. so we have gone from a high sticker price, high discount to a lower sticker price, low discount rate. at the same time we decided to do it just more than the sticker price. we want to realize savings for our students so we have cut the cost, as well. >> if the sticker price is coming down by 40% but the discounts coming down too how much is the price coming down? >> at rosemont average $6,100.

packaging from $100 to several thousand dollars. >> based on -- >> is this really a 40% cut in tuition or more honesty and transparency in pricing? >> i would say both. it is both. that's something that both of our schools and many schools are looking at today. it's financial aid is very, very complicated for families. we really want the price, the cost of education to reflect the price as much as we possibly can. that's the key. people ask me why would you do this? we had a record freshman class this year and 15 straight years of record enrollment. yet i told people it is an easy answer. it's the right thing to do. >> if you are looking at financial aid coming down and discounts coming down i will throw this to both of you, is that a situation where it means that people from lower means will have an easier time getting in or a tougher time getting in?

i'm trying to figure out who is getting the most help in this scenario? >> the entire range of our students will save money. 93% of our students per year save between $1,000 and $5,000 per year and the remainder save $5,000 and up. the vast majority of our students are going to save significant dollars in this. we really structured it so that would be the case. we are investing $2 million in cash flow instead of putting it into rooms and sidewalks we are going to put that money into guaranteed savings for our students and families. >> sharon. >> we are doing much the same. but when you said transparent, that was definitely part of our strategy in doing this reset because one of the things that interested us most was a study

by sally mae that did an annual survey and learned 53% of respondents said that they would not look beyond sticker price. and we were sitting there realizing that that's 53% of the potential families who are not looking at a sticker price beyond a sticker price that you know is an artificially inflakted sticker price. >> do you think other schools would do this or is there not as much of a cushion to cut at other schools? >> i think we will see some other schools. i have said at national meetings that every school has to find a pathway to affordability. a tuition reset takes a certain characteristic of an institution to make a reset feasible for that institution. i think every school ought to be looking for ways to hold down costs for families and students. >> from your mouth to god's

ears. i want to thank you both for joining us today. here's a look at what is making news. we know the federal reserve kept interest rates near zero at the last meeting last month. now we know what they said and why. in the minutes the fed's open market committee says it expects to raise interest rates at one of the two remaining meetings. members said they were concerned about slow growth and that inflation was below their target of 2%. the markets seemed to like what the feds said. the dow climbing more than 130 points on thursday. with the nasdaq advancing stocks continue to rise on friday. it could be a busy holiday shopping season. the national retail federation came out with the annual forecast and predicted increase over last year to a total of $630 billion. holiday shopping is closely watched because consumers make

up more than two-thirds of the economy. you might call it the great pumpkin shortage of 2015. record rainfall in the midwest washed out a chunk of that crop and experts say it shouldn't impact halloween but by the time thanksgiving rolls around you might have a tough time shopping for the canned crop. up next making the grade, a site that lets teachers run full time businesses without leaving the classroom. if you think you have enough saved for retirement you might want to think again. the one cost a lot of people haven't factored in. think how the stock market ended the week. stamps.com is the best.

i don't have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stamps.com you can print real u.s. postage for all your letters and packages. i have exactly the amount of postage i need, the instant i need it. can you print only stamps? no... first class. priority mail. certified. international. and the mail man picks it up. i don't leave the shop anymore. [ male announcer ] get a 4 week trial plus $100 in extras including postage and a digital scale. go to stamps.com/save and never go to the post office again.

nowadays it is hard to imagine buying or selling anything without the internet as a market place. teachers are selling classwork and lesson plans online. the ceo of teachers pay teachers and angela watson is one of 1,000 teacher sellers joining us today. >> it's great to be here. >> explain how this works. this is an online market place. >> classroom tested that teachers can take that material and make it available for teachers to use. we have teachers buying selling and trading great resources. >> what is the cost for a lesson plan? >> every teacher who puts something for sale has to put something up for free. we think teachers don't have a lot of extra money. we want to make sure every

dollar they spend is well spent sghmpt are i loved creating curriculum resources for students. it's something i did for many years and i did it for the love of it and never had an idea that there would be something like this where it would be possible to share what i did with other teachers. >> my mom was a teacher, too. i thought that is what every classroom teacher did. is it weird because students can't buy somebody else's paper. i guess this is slightly different. how do you get ethics of whether it is okay? >> teachers are responsible for developing their own lesson plans. teachers pay teachers is a lot of supplemental resources. while teachers will develop their own lesson plans they need the activities to use with students. this is something teachers have been collaborating with for many years before there was an online market place. we would share ideas and buy resource book. you might have to spend $25 to

sg get three or four pages. it is making it easier, faster and cheaper for teachers to do what has been going on for many years and that is sharing practices. >> i know the business struggled when it first started in 2006 it was sold to scholastic it was sold back in 2009. you said the business didn't take off until 2011. >> it was founded by a new york city school teacher. he chairs the board now. in about 2011 we saw some really dynamic teachers start sharing their lessons and their ideas and really creating a community. we are a market place but really a community of teachers. what made the site take off is where can you go and buy something and if you have a question about it ask the person who created it. if you buy from angela she will update it if it needs updating. they started to build this world of content that is totally

responsive to the changing needs of the classroom. >> if you build it they will come but -- >> we needed the great teachers to create the community. >> how do you make money? >> teachers who put something up for sale take 85% of the proceeds of the sale and we keep 15% to keep the lights on. >> as a parent can i buy? >> we have parents coming on. we have school administrators, home schooling parents and people from around the world coming on to the site. >> i want to thank you both for being here today. >> great to be here. up next we are on the money. retirementp sticker shock. the one thing you may not have planned for when you get to retirement and it could have a really big price tag. >> and the man behind credence clear water revivals biggest hits. >> don't take advice that says you will never make it. there is too much competition.

you may think you're prepared for retirement but have you taken health care costs into account? sharon epperson joins us with a look at the statistics and solutions to try to help retires prepare for one of the biggest expenses they will have. this is one of the numbers where you know you have to figure out how long you are going to live to figure out retirement. figuring out how healthy you may

or may not be seems almost impossible. >> it is almost impossible but main 2taining a healthy lifesty now is probably the place to start. what is startling is the number that you are going to have to come up with in retirement. right now for couples 65 years old will have to have $245,000 just to cover health care costs in retirement. >> that's assuming that you don't need an old age home. >> this does not include long term care or nursing home care. what this does cover are premiums. you know you have medicare. doesn't cover everything and out of pocket costs for prescription drugs perhaps that aren't covered and deductibles and things like that. >> are the statistics different for men and women? >> of course because women are going to live longer of 87 going to pay about $130,000 compared to $115,000 for a man whose life expectancy is 85 years old. >> whatever you are saving you

should save more. >> and for some people it may go up even more because medicare part b covers doctors visits and such, for those next year you can see a greater increase because of new rules going into effect, have you haven't gotten social security benefits you can see it there. dual medicare enrollees. that is going to be an even more substantial increase. another reason to save as much as you can now. >> it is hard to get your head around this. if someone is trying to figure out how to manage the cost what should you do? >> there is a great calculator. they have really great information. also you just need to start thinking about it and saving now. if you are thinking that i'm just putting in to the company matching my 401 k and that is enough, put in as much as you can, maximize the accounts you have available now to save for retirement. put money into a health savings

account if hthat is available fr you. you want to make sure you have that savings. the most important thing how do you determine your health care? do you go to the doctor a lot, not too frequently? how could you get healthier, exercise, eat right, do the right thing. up next "on the money" a look at the news for the week ahead and big whoels keep on turning. john foggerty shares the inspiration. >> a few days later the words proud mary came in my head.

guests you can go to our website or follow us on twitter. here are the stories that may impact your money. earnings season is in full gear. we will be hearing from bank of america, jp morgan, chase, wels fargo and citi. monday is columbus day. anchors away on tuesday the u.s. navy celebrates its 240th anniversary. on wednesday the beige book is released, a survey of economic activity across the country. also on wednesday getting retail sales and that is always closely watched because consumers are such a big part of the u.s. economy. proud mary, bad moon rising,

have you ever seen the rain, a few monster hits. and the memoir credence cofounder sdroibz the lessons learned from signing a bad deal that cost millions to selling songs that sell millions. >> i've loved your songs for years. i didn't realize the story behind it until the book came out. i knew music record labels could be bad guys but you may have met the worst one on the planet. >> another a lot of people were victims, i guess you would say. certainly, this story could be a poster child for what can go wrong. >> what happened in the situation? when we were looking at the rights we can't play your music that we all know so well because you are not the owner of the music. >> i never did own the songs.

we signed a bad contract before i actually emerged as the main song writer and the guy putting out all those hits. so in other words, they weren't given away. i never had them in the first place. >> how did they convince you to sign it because you weren't known as credence clearwater revival. >> we signed with the prior owners of fantasy records. at some point our first single was ready. we opened the box and it says the golly washingtgs. i was in shock. i thought it was a joke. the first thing we asked when the new ownership took over was can we change that terrible name? we want a new name. >> he said yes but it comes with a new contract? >> he said he wanted to sign our

band and so then i remembered the drummer saying we have been at this a while. what will happen if we actually have success? because we haven't had much. he says we will tear up this contract and make a new contract and you will all share equally. i remember that, but, of course, that didn't happen. >> where have you found some of your inspiration? "proud mary" that adjujust a ph in your head? >> i decided to get more organized and i got a little note book and binder and filled it with paper and got ready for an inspiration. i written song titles and then a few days later the words "proud mary" came in my head.

it sounded cool. >> it wasn't a girlfriend or a friend? >> no. that was the way it came into my head. i went to the little notebook and wrote it on the first line, the first entry in my song title book. >> you didn't write the song immediately? >> it was much later. >> if you had a lesson to offer to a young musician today what would you tell them? >> make sure you understand the details before you sign anything. >> i go back over so many iconic songs that you have written, i probably hear your songs on a daily basis. how often do you hear them and what do you think about when you hear them? >> i hear them a lot now. i'm very happy now when i hear them. life is really great. i just feel fortunate that i survived long enough to get here to a time when i feel very good

about my music. i'm really enjoying being the author of those songs and getting to go out in front of a real audience and sing them and have all of us feel wonderful about music. >> you have made us feel great. thank you. i'm so glad it makes you feel good, too. >> thank you. not only the author of those songs but also the author of "fortunate son." i'm becky quick, thank you for joining me. next week the search for new treatments for alzheimer's disease. we are "on the money." have a great one and we will see you next weekend.

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