hi, everyone welcome to "on the money." i'm becky quick. baby, it's cold outside, but you knew that. we'll tell you why the deep freeze could mean something for your wallet. now that you've run up the credit card debt for the holidays how can you dig out of that debt? turning post-holiday money blues around. the new military mission making sure those who serve learn a crucial lesson about a very different kind of strategy. and the big boom in bourbon. what's driving the new trends and why the industry is barreling toward success "on the money" starts right now. >> announcer: this is "on the money. your money, your life, your future now, becky quick

we begin with the big freeze this week, record low temperatures and winter storms have gripped much of the nation. even parts of the deep south had snowfall for the first time in almost three decades nearly the entire country has been hit by this bitter cold spell. it's had a chilling effect, an it's this week's "cover story. >> this kind of weather, you know, anything can happen. >> brutally cold weather has taken hold across the country, hitting more than half the u.s. population >> it's just frigid. like it's biting in the face just cold. it's no way around it. >> in illinois, the chicago river was frozen and even the mississippi river has chunks of frozen ice new york's majestic niagara falls frozen in time more than 230 million americans are dealing with below-freezing temperatures this week and it's not just in the north in texas, icy roads making driving treacherous in san antonio. citrus farmers in florida trying to protect their orange groves in georgia, icicles dangle from a historic fountain in savannah.

streets in charleston, south carolina, covered in snow. the frigid temperatures are also freezing pipes and creating damage in davenport, iowa, ice from a water main break encased this woman's car, frozen solid. >> i couldn't even tell you how many inches of ice it has on it. >> in missouri the water main burst through this man's front yard, freezing his cars and flooding his home. >> not a great start to the new year that's for sure. >> especially this week everyone is complaining about the weather. here's someone who is actually doing something about it paul walsh is the director of weather strategy and ibm global services thank you for joining us, paul >> thank you, becky. >> you know, this arctic cold spell has continued for more than a week. extended cold like this, does it actually end up having an economic impact? like a hurricane or a wildfire might? >> yeah. it certainly does, becky in fact, it's the -- the economic impact actually can be bigger than those kind of events the entire sort of eastern half of the country is frozen right

now, and with that, the economy sort of slows down it doesn't grind to a complete halt, but you can imagine, if people are not out not doing the same kind of things they're usualty log they're no spending the same kind of money on the same kind of things of course then there's the impact, the potential damage impact as we heard about, pipes and the impact on the citrus crops and the impact on travel all of those things sort of combine to create this sort of slow-down in the economy. >> you mentioned the retailers i know that around the hurricane you'll generally see people rushing out to the home depots and other places, grocery stores, trying to bulk up and prepare for it ahead of time then the cleanup impact after. in a situation like this, though, is some of this loss because people think, i'm not going to the mall, and you don't go back out, because you're staying home, or does it all work out in the wash

>> some of it, a lot of it does work out in the wash things, however, like not so much retail but like restaurants. >> right. >> travel, lot of others are lost forever. >> you mentioned the travel industry anybody who is thinking about flying, hundreds of flights were canceled some of the amusement parks closed, particularly some of those big amusement parks that have water parks in florida. what happens there >> obviously they're going to be losing business. they're losing a lot of revenue during the times they're shut down the timing, the fact we're in the middle of the week kind of mitigates a little bit of this but of course becky, we just started winter we've got a long way to go >> don't remind me >> and the cumulative effect of these kind of events is where we really start to get hit hard. >> you mentioned all of this talk about what it means in terms of damages for homeowners. in the case of a hurricane there is long-lasting damage, long-lasting issues that stick around same thing for any of the fires we've been covering out in california and beyond. in this situation, burst pipes, you think about things like that, but how can you really add

it all up in terms of the damage >> in terms of the insurance loss, these kind of events typically are not going to be as widespread or damaging as a hurricane, for example hurricane irma or hurricane harvey the insurance money will flow in, will flow in probabl within a month or two. this event is not going to be nearly as dramatic in terms of that, as it relates to sort of the hurricanes and fires but we'll still see some of that as we move into february. >> paul, you mentioned that the forecasters, the weather forecasters are getting better and better at this, and you are. we're able to as consumers prepare for all these things with ibm you're able to compile all of this weather data and forecasting, and what happens with your customers? the airlines retailers, other companies that are using data like this what are they able to do >> you know, the interesting thing that's happening now is more and more companies are able to take the weather data and then use analytics and even use artificial intelligence and sort define from that data how th weather's likely going to be impacting what you and i are going to be needing. anticipating how the weather's going to shape what people are needing, predicting how much

more product they're going to be needing, and the flowing those products into the stores. >> paul, thank you, always great talking to you, i appreciate your time. >> thanks, becky now here's a look at what's making news as we head into a new week "on the money." america's economy added jobs last month just not at many as had been expected 148,000 more workers were employed in december, below expectations, and numbers for previous months were revised downward construction was strong and retail was weak. the unemployment rate stayed steady at 4.1% average hourly wages edged up 0.3% stocks started off the new year with a bang. the dow smashing through the 25,000 mark and setting a new record in the process. just five weeks after breaking 24,000 for the first time ever check out the nasdaq it closed above 7,000 for the first time ever. the s&p 500 set a record of its own. stocks continue to climb on friday america's industrial businesses are booming. the ism manufacturing index, which measures that sector, rose

to 59.7 last month any number above 50 shows expansion. new manufacturing orders jumped in december to the highest level since january of 2004. one of those businesses is steel and mining company arseloma, hiring 640 new employees last year and says that is just the beginning. our kate rogers has more from burns harbor, indiana. >> reporter: this company employs nearly 18,000 people in the u.s., and is planning to hire more. >> 2018, we're projecting to hire another 1,100 employees both hourly and salary. >> reporter: the company is keen to see what comes from tax reform and a potential infrastructure bill in focus this year. >> using domestic products, rebuilding our country's roads and bridges would be ver positive for manufacturing in general, and also for the steel industry. >> reporter: but like many manufacturers, they face headwinds finding skilled workers. that's why it started the steel worker for the future program. >> it's really a partnership of us with high school graduates,

where we assist them with their college education, but also provide for them the opportunity for hands-on training in our factories. >> reporter: the steelmaker has hired 90 former participants and currently has 144 students enrolled dantrell brooks is a recent graduate. >> my senior year of high school, everybody was talking about big named college universities, going there for plus years to get a degree, well, i saw this as a 2 1/2 year degree, less than half the time. guaranteed job, training in craft, i have to go for it. >> reporter: they partner with middle and high schools around the country to help recruit and usher in the next generation of talent according to the indiana manufacturers association, with baby boom retirement coming, the state may have to fill up to 1 million roles for workers over the next decade. they're really heavily recruiting and looking for skilled workers. >> thank you very much kate rogers. up next, we're "on the money. the military is making dramatic changes to its retirement system, and millions of service

members will be affected, but will it be mission accomplished when it comes to savings for the future later, americans are spending big-time again. if you overdid it with your credit card over the holidays, what should you do now right now, we'll take a look at how the stock market ended the week

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the new year is bringing sweeping changes to the military's retirement system biggest since world war ii a move impacting millions of future and current service members. we have the details. >> reporter: 23-year-old zach beckman is a government contractor in the private sector and a reservist in the united states marine corps. military service runs in the family >> i wanted to be a marine since

i was a little kid my first big dream my dad was a marine. my grandfather was a marine. >> reporter: now being offer a choice for his financial future they never had. >> the old system, basically you had to stay in 20 years before you got any type of retirement plan. >> reporter: under the current retirement plan, military members receive a lifetime pension equal to 50% of their base pay to earn it, they must serve at least 20 years many aim to hit that target but only 19% reach it. the majority leave the service with nothing. >> today people move from job to job, and they need a benefit, a retirement benefit they can take with them. >> reporter: starting this year, service members entering the military will be part of the new blended retirement system, combining a pension plan and another plan like a 401(k) putting more of the responsibility for long-term saving on the member's

shoulders. >> starts to learn them to contribute to their own future and retirement. >> reporter: those with at least 12 years service will stay on the legacy program 1.6 million who joined after 2006, including the corporal, will need to choose which plan they want. >> if you know for the fact that you are going to serve 20 years, then you should stay with the legacy system. >> reporter: there is still a pension under the new system as long as you reach 20 years, but the amount is reduced by 20% the department of defense says members are encouraged to make up the difference using the federal government's threat savings plan or tsp. those who opt in will select how much money they'll contribute to the tsp and can begin receiving government matching contributions of up to 5% of their pay right away >> it is my strong belief if they get the education and they start right away contributing, they won't misthe money. >> the reason congress passed the law -- >> reporter: the military is requiring mandatory financial education training on bases and

online so far, over 80% of those who must make a decision have taken it some financial advisors worry one course may not be enough. >> this all has to start in the boot camps this has to be fully integrated into training, just as much as they teec teach you how to shoot a gun, they need to teach you how to invest your paycheck. >> the blended retirement system, we think it's a key step in recruiting and retaining the atlanta talent we need. >> reporter: this marine reservist says his choice is clear. >> getting my civilian job and marine corps experience i know the value of a dollar and see it's important to save up for the future. >> reporter: for other service members choosing the best path for retirement savings play not be as easy, becky. >> you know, this is really interesting. this is kind of playing catch-up

with corporate america we were just talking about this, both companies i've worked at in my lifetime had the same transition that's taken place, but you make a great point in the package. it's all about education something not only military members need i argue you need it in elementary school through high school everybody needs to figure this out. >> reporter: absolutely. financial advisers say this financial preparedness needs to be mandated not just one course. something ongoing. >> i would argue not just the mill fae military, something everybody should do. >> reporter: exactly right another thing they're doing, corporate america started, open enrollment having the 401(k) is great, but making sure employees are joining and contributing to the plan forcing them to do so is one start and another thing corporations are doing and the military hasn't said yet, increasing that amount each year companies say 3% this year

increase that automatically to 4% next year, 5%, 6%, 7%, something else helpful to many people. >> thank you appreciate it. a lot to think about. next, "on the money. america's on a spending spree and credit card debt is nearing an all-time high, but there will be a hangover after the party? a later, bourbon is booming. question now is, can the supply keep up with the demand? happy anniversary dinnedarlin'

can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone.

season and free spending, now comes the not so fun part, the bills. while americans are feeling more confident and spending more, they may be actually overdoing it all of us are. credit card debt nearing an all-time high. if you find yourself with a big credit card bill what should you do wallet hub's jill gonzales, thanks for being here. >> thanks for having me. >> americans are nearing a all-time record for credit card debt what do you think this is? is this a sign of consumer confidence is it a good thing does it mean wear are all getting over our heads at this point? >> the trillion-dollar mark in terms of debt is not a good thing. yes, we have a lot of consumer confidence obviously the economy is in much better shape than it was pre-recession, but these spending levels are reaching the unsustainable heights that they were in q4 of 2007

something's got to give. >> where were we then, where are we now, how do you break this down looking at the whole amount, per capita >> the whole amount, $980 billion in q4 2007 now the trillion-dollar mark for the first time ever. that's collectively. per household back then, around $8,400 now we're at the $8,600 mark we've already seen the delinquency rates start to creep up at the end of 2017. >> what does this tell us, and how can we address it, i guess the other thing is interest rates have been incredibly low not if you look at your credit card rate. that rate is much higher tha you'll pay for something like a mortgage or auto loan. as a result, what do you tell people to do which bills should they be paying off, how can they get things under control >> you're right. interest rates were at a historical low in 2015 now the fed has been raising the prime rate, three times last year, it's looking to do it three times this the year. every time that's raised it adds about $1.5 billion to our credit card interest charges.

>> ah! >> that's pre-hike so we're expecting three more of them the goal is to make something realistic happen, it's resolution season. towards the end of 2018, you want to see about 20% of your credit card debt paid off. so for the average household, that's around $1,700 >> what should you do in terms of balance transfers or ways to get lower rates? should you put it all on one card should you be looking for the lowest rate? should you take out a home equity line of credit to get a lower rate what's the smart thing to do >> right now, balance transfers are your best bet, especially since they have really great offers going on that we probably won't see for too much longer because credit will have to tighten this year. so i would say putting it on a balance transfer card. we usually get a 0% apr on that balance for up to 21 months. that buys you a lot of interest-free time >> great advice. jill, thank you for being here today. >> thank you >> again, jill gonzales of wallet hub. next "on the money," a look at the news for the week ahead and will the bourbon boom last

we will take to you a kentucky bourbon company making a billion-dollar bet on the popular whiskey.

here are the stories coming up that may impact your money this week. on tuesday we'll be getting the report from the labo department, tells us how many job openings there were for the month of november. on that day 11 years ago steve jobs introduced the very first iphone on thursday we'll learn the size

of the federal deficit that's when th treasury budget is released. then on friday, we'll see how retailers fared during the month of december. plus, we'll also be getting a read o inflation with the consumer price index. 95% of the world's bourbon is made in kentucky. demand is growing for america's native spirit. distillers are betting big that trend will continue as landon dowdy discovered when she went to the bluegrass state >> it is very smooth it goes down so easy >> reporter: u.s. whiskey sales on the rise the past five years, and show no signs of slowing down >> i switched several years ago. >> yeah. there's definitely more of a bourbon boom >> it's not really focused on one demographic. >> reporter: bourbon and whiskey sales jumped 7% and 22% respectively last year, according to international wine and spirits record companies like privately held papi van winkle maker are betting big, build agency new warehouse every four months and filling it with wivgy at a cost

of $25 million a pop >> it's literally a giant guessing game. but it's fine. i mean, we can -- if things start to slow down, we can actually decelerate the investment program, bu right now, we're set to invest $1 billion in the next 10 years. >> reporter: i had a chance to try their pappy van winkle bourbon, aged for the majority of my lifetime now let's see if i can actually pick out the pappy sold at abou $315 per shot or up to $5,000 per bottle >> i want to go with this one, because it's the smoothest >> well done. >> with a barrel of pappy taking decades to age, the question for analysts, can companie produce enough bourbon to keep up with demand it's not just them getting a boost from bourbon, an investment of $45 million to modernize its facilities, installing new bottling technology to 100 bottles a

minute, double capacity, and $15 million to build a distillery and visitors center to open next year consumers are not only drinking more bourbon but more expensive bourbon. >> with american wivgies, whiskeys, if you're at the premium end, you're doing the best this position is the premium end of american whiskey so we're right with the trends right now. >> reporter: analysts and the companies attribute the bourbon boom to millennials thanks to the ongoing classic cocktail trend and the entrance of flavored bourbon, making it more attractive to women. becky, you look skeptical. what's in that cup >> there's no pappy van winkle in here today. >> reporter: i let you down. >> it would help us toda potentially make us feel better about things you know, the big bourbon distillers, do they worry about the new craft entrance do they think it's going to eat into their sales or do they think it's something that might float all boats? >> reporter: we have seen a lot of that like the craft brewers the big guys say, it's not a problem, as soon as they start to get popular, they can't keep up with the demand so they have to buy them we saw with companies like

angel's envy bacardi just bought them up. it's a good thing for them >> it takes a long time with bourbon, isn't that the trick? >> it takes at least seven years. with the pappy, 23 years they're betting 40 years in advance that people are going to want all this bourbon, specifically the pappy you can taste the difference, i have to say. in the 23-year-old aged pappy. >> you have whetted my appetite for the next time you're there. >> reporter: we will go to kentucky i'll take you with me next time. >> sounds good, thank you very much that is the show for this week i'm becky quick. thank you so much for joining us next week -- fitness trends slimming down without making your wallet get too skinny as well new ways to keep your new year's resolution each week keep it here "on the money. have a great one, and we will see you next weekend

hey there, live at the nasdaq it's freezing. who w look who decided to stay even put on his fancy jacket here's what's coming up on the show ♪ back in the saddle again >> announcer: when some traders are saying about bitcoin, surging again. and option traders even bigger gains for some crypto-related stocks how to profit. plus -- talk about a bank job. >> this is a robbery >> financials have surged into earning, but