welcome to "on the money." interest rates are rising. what does it mean for your money. the answer might not be clear as you think. who wins, who loses, and what should you do? you may know instagram, facebook and snapchat, but your kids live them how to keep them social media savvy and safe a big change for an iconic brand. w why l. bean is throwing an old policy out the window. and a sneak peek at what your coffee shop may look like,

can you say nitro brew "on the money" starts right now. >> announcer: this is "on the money," your money, your life, your future. if you're looking to buy a home and need to take out a mortgage, beware, it's getting more expensive mortgage rates have been on the rise since the start of this year and have really been taking off in the last week, but will they continue their climb and what does it mean for home buyers and seller this is spring diana olick has some answers. >> reporter: the timing couldn't be worse just as the spring housing market kicks off this presidents' day weekend mortgage rates are moving higher faster and buyers were already facing higher prices amid strong competition. >> there's simply not enough homes to go around for people looking to buy them. >> reporter: this half million dollar denver home went on the market on a thursday and already had three offers by monday with nearly 100 people touring the

home in between. >> i thought i was at a higher price point where it would be easier for me to get a place without a lot of competition but i've put down two offers so far and both times been beaten out by cash offers >> reporter: now rising rates are part of the rush. >> in the short term, i strongly believe that will cause more buy-side demand as people try to get into a home before interest rates get to a point where they can no longer afford a home that they would like. >> reporter: the average rate on the popular 30-year fixed moved past 4.5% this week -- still historically low -- but buyers over the past six years have gotten more used to rates in the 3% range rates haven't been at 5% since 2011 a 5% rate would cause more than a quarter of today's home buyers to slow their plans according to a red fin survey just 6% said they would drop their plans to buy all together. about one-fifth of consumers said 5% rates would cause them

to move with more urgency fearing rates would rise even further. another fifth said they would consider more affordable areas or just buy a smaller home rates have definitely been volatile and could wobble slightly in the short term but the trajectory for the long term seems to be higher spring will bring more listings but supply is still tight and demand is so strong it's unlikely to take the heat off an already super hot housing market contes contessa >> if you're going to have buyers who some dropped their plans to buy or buy in more affordable areas, what happens to the rental market will you see a big rush? >> you may see more people who decide not to buy a home right now. rents are incredibly high which makes it harder to afford that down payment to save for that down payment so you may see more people stay in the rental market and those who can get into the housing market will have to look in cheaper areas. >> diana olick, thank you. those rising rates may not be great news for home buyers for but for savers, it's a

different story. sharon epperson joins me now why are they rising so quickly when we're talking about the fed raising the rates. >> let's talk about rising interest rates and how it affects consumers across the board, whether you're a saver or borrower rising rates are occurring because great things are happening with the economy people are spending more,'m plo i -- employers are hiring more and companies are investing more that's a good thing for the economy so we don't need ultra low interest rates to make the economy better because it is getting better but the flip side of that -- two sides of every coin -- is that we're seeing overall prices rise, inflation creeping up and to curb that, that's when the fed steps in and says we're going to have interest rates rise a bit here. >> are we talking about what you pay on your credit card debt is that going to change what students pay for their student loan debt? >> it's going to really affect any type of borrowing that you do where the interest rates

varies so that's going to be important. the good news is that savers are going to get more on their savings and i do mean a little bit more so if 1.5% savings rate on your savings account doesn't excite you, it should because it's much higher than it's been in a long time and if you shop around, bankrate.com, depositaccounts.com, you can find them. the other thing is tying up your money longer if you're saving and you don't need it right away put in the a short term cd for a year or, so you can get a rate as high as 2%. if you're able to save, this is a good time to start paying down debt with the savings you're accumulating so that's important to remember as well. >> when i was a kid and was being taught how to save in a savings account you could see a difference with the interest accrual at the end of the year and it's been hard to see that for a really long time. >> it has. it has. >> let's talk about credit cards and anything elsewhere you'd have a variable interest rate. >> when you look at credit cards

you're going see a rate-to-rate comparison there, your rate on your credit card is going to go up .25% as well so it's direct so on a thousand dollar balance, that's an extra $2.50 on that balance. what you need to do is look at what your prat is on that credit card and see if there are different ways to lower that rate one way is to maybe do a balance rate trvr but you have to keep in mind those are teaser rates and the balance transfer could incur a fee as swollen to you have to see what is cost effective for you. >> so this is an area where all these parts of your debt could combine to make your life much more expensive month to month. is there anything else you look at >> the variable rate, so whether you're talking about a credit card or home equity line of credit, neigh will shift relative to a rate tied to the

fed funds rate, that will have an impact on you that could also impact those student loan borrowers who are looking for the lowest rate possible they say okay, we'll go with a private variable loan for student loan that will change also so that is one area people might look to see whether it's possible to enroll to autodebit to lower your rate, if you can get a shorter repayment turn make the payments prior to graduation people are like how can i do that i'm in school? but that's a good way to lower your rate and wherever you go, a fixed rate loan in a rising rate environment is a better place to be. >> thank you so much for great advice. >> sure. now here's a look at what's making news as we head into a new week on the money. as we mentioned, inflation may be rearing its ugly head and that's a big deal. the consumer price index which measures what americans pay on a monthly basis for everything from rent to clothing increased by half a percent last month

which was more than expected rising inflation could mean the economy is running hotter and the federal reserve may be more likely to increase interest rates. the markets seemed to shrug off the news, the dow with triple-digit gains on monday, wednesday, thursday and recovering much of its recent losses the nasdaq and s&p 500 largely followed suit. stocks were mixed on friday. retail sells fell .3% and are expected to increase kreecrease% it may be due to spend fatigue after bad weather across much of the nation up next, we're on the money. is your child addicted to social media? tips on what to do and how to prevent it and later, for more than 100 years l.l. bean has had a lifetime return policy for any item now it's a different story

here's a look at how the stock market ended this week

how many times a day, honestly, do you check your own? dozens maybe hundreds what about your kids one report by common sense media found that 50% of teens feel addicted to their phones so what can parents do if they think their children are spending too much time on their phone joining us now is the author of "social media wellness, helping tweens and teens thrive in a digital world. i'm the mom of young kids and i'm trying to think about the ways they have to use this they have to master it but why is there an addiction in the first place?

>> it's not the smartphone itself that's addictive, it's more of the applications and how we use them. so when we think about social media, so much of it is created on this feedback loop of notifications and they want to promote engagement so when they're promoting engagement, they create this system where we always want to be online and it can create this fear of missing out if we're not online. this happens for adults as well as kids. >> and it trains us for immediate gratification, that you get some reward in your reward center of your brain when you get a thumb's up or like or comment back to a post you've done in your research, did you find there's a right age to give a phone to a kid >> it depends on who your child is and what your family situation is, but what i find more and more problem matic is ki parents are giving their old smartphone as a hand me down i recommend incremental usage, give them a flip phone first, have them use it at certain

times so you're establishing good habits. >> are you finding parents who say, no, i'm not giving my child a phone. >> more and more i'm finding parents are waiting until the eighth grade or ninth grade to give their kids a smartphone but before then maybe for commuting reasons, maybe they're in an afterschool sport, they get a flip phone for access and emergencies because pay phones aren't available like they were 20 or 30 years ago. >> that's true and what steps can parents take to keep their children from becoming reliant on even technically addicted to not just the device but the screens themselves and the apps on those screens? >> well, the most important thing they can do is be consistent about creating daily and weekly detox times so what i mean by that is every night the phone should come out of the room. a lot of kids will say i use my phone as my alarm clock. i say go to the drugstore, by a regular alarm clock. the other piece is every week there should be a few hours where kids aren't on screens.

>> you think the mophone might e safe in the kitchen plugged in but kids have minds of their own. are their apps that monitor their usage? >> there are several apps that help for example, our pact is an app that allowsparents to turn off different social media apps after a certain hour then there's circle by disney which is a device that works through your wi-fi system that allows you to monitor and turn things off to give it a bedtime. >> i have to ask my dad didn't even have a tv in the house growing up, he thought it rotted our brain and you can see how rebellious i am but is tv still a concern is too much tv time? >> here's what's challenging with television. we can now watch television on our phone so are we using our smartphone or are we watching television then we can share that clip online so there's all these ways we ear using television but the thing we have to think about and

how smartphones and social media are different is that we're getting a constant stream of content, it's new but also personalized based on what our likes are and what we've watched before so there's all this stuff coming at us that is filtered based on our own personal preferences. >> so you're not getting exposed to diversity, which is important. big picture, you've done talking and writing and research are any of these fears overblown? >> i think what i often say is that social media isn't good or bad but a new tool for communication. but what is a problem is that we as adults don't fully speak the language kids are speaking and we need to. >> as a parent one of the problems is that if my phone is around, i'm not present with my children so you have to set it aside. anna, thank you so much, appreciate your time. >> thank you for having me up next, retailer l.l. bean has had a generous lifetime guarantee on anything you buy from them. maybe it was too generous. later, an old friend gets a

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not the other way around. for more than a century, l.l. bean has had an unlimited lifetime return policy, but they've just changed the rules now you can return any item within one year of purchase and you must have a receipt. jay bear is marketing strategist and author of "hug your haters, how to embrace complaints and keep your customers. jay, good to talk to you i've known and loved l.l. bean since childhood. this made a lot of news, even a lawsuit from one customer. what do you think, good or bad >> i think it's a reasonable policy change. the problem is that people were going to garage sales and ebay and buying worn l.l. bean merchandise, returning it to stores for full credit, returning them and flipping those items and essentially making a job out of this

they finally said enough is enough i would say the policy they have in place is reasonable and fair but it feels unfair compared to what they had previously. >> they were really putting their money behind their products they were saying if you're not happy over the lifetime of this product, we'll return it but if you looked at the fine print, it would say over normal wear and tear or whatever but i know because i had returned l.l. bean boots that i thought should have lasted longer than a season and returned them and they gave it back, no questions asked so what was the breaking point for l.l. bean? because over the years there had to have been a lot of people who brought the l.l. bean knowing they were buying quality products because the guarantee was right there. >> that's just it. from a customer service standpoint this doesn't bother me too much. from a word-of-mouth standpoint it bothers me a tremendous amount because what they have done is takingen a differentiator, a talk trigger, something that set them apart in the marketplace and gave it away

and said we're not going to do that anymore so either the amount of revenue they are losing on these bogus returns was exceptionally large, larger than we might imagine or they just decided perhaps incorrectly that customers don't care about a lifetime warranty versus a one year warranty versus proof of purchase or no purchase perhaps they've miscalculated. >> this policy was part of its iconic brand of having durable products and goods what happens to that brand a reputation in the face of increasing competition globally. >> i looked at a lot of customer comments on their facebook page after they announce this and they say they didn't handle this very well, either it was a letter from the chairman and just said hey, we're making this change there wasn't anything human or empathetic about it. but there's customer comments on their facebook page and twitter account that say we no longer have a reason to shop at your store versus everybody else who sells essentially the same goods and i completely concur. they had a differentiator and

they voluntarily gave it away. now $250 million is nothing to sneeze at and i think the reason they thought they could get away with this is that rei did the same thing in 2013 they used to have a lifetime warranty and in 2013 they went to a one-year program almost exactly word for word the same for what l.l. bean has done now. >> apple has a 14-day return policy, amazon has a 30-day return policy. is one year still too generous >> well, that's the funny thing about this if we flip the script on this and we said this isn't a 106-year-old company, this is a startup company that's going to offer goods and services and have a one-year return policy, no questions asked and lifetime for defects, we would be praising them for the generosity of this policy what makes this difficult and what bothers people is that they've taken something away if they started from scratch we'd say wow, this is extraordinary. >> so great to talk to you thank you so much for your time

today. >> thanks so much. up next, "on the money." a look at the news for the week ahead. and it's the dunkin' donuts of the future the next-generation store that will get your cup of joe to you even faster. crest 3d white removes... ...95% of surface stains in just 3 days... ...for a whiter smile... that will win them over. crest. healthy, beautiful smiles for life.

here are the stories coming up that could affect your money this eek monday marks presidents' day, a federal holiday. the markets will be closed 56 years ago tuesday, john glenn game the first american astronaut to orbit the earth on wednesday, we'll see how many existing homes were sold in the month of january and the minutes from january's fed meeting will be released on thursday, the leading economic indicators come out that's attempts to predict economic conditions six months from now it's also national margarita day so bottom's up to all the tequila lovers out there it was back in 1950 the first dunkin' donuts opened and now 68 years later in the same

new england town dunkin' is testing its new concept store of the future our kate rogers went to quincy, massachusetts, for a coffee run and met the boss behind the brew. >> i think it's really about a new dunkin'. >> reporter: the coffee wars are on and dunkin' donuts plans to win. part of the company's strategy a new concept store unveiled last month in quincy, massachusetts, meant to cater to consumers on the go who are looking for value. >> i like the design, it's modern, convenient with a drive through and love the paper cups. >> reporter: dunkin' is focusing on a beverage-first policy they slimmed down their menu and are trying to improve the customer experience. they have cold drinks on tap and outside the first ever mobile only drive through lane. >> we did the thrive through one day, that worked out great they're very quick. >> in the stores that have drive throughs, about 75% of our sales and we are as they say in boston, wicked fast. >> reporter: there's even an innovation lab next door where they're testing out printing photos on lattes with coffee

extract. >> you look good. >> thank you, you look good, too. >> reporter: they'll be rolling out 1,000 new stores over the next three years, 90% of them outside of the northeast where dunkin' has a stronghold franchisees will be able to visit the concept store to see what might work well in their own locations and build on that. so far in quincy, customers seem impressed? >> very efficient. >> it's a little different looks good. >> contessa, the idea is to have about 50 or so of these concept stores rolled out in the next three years and the coffee wars are heating up starbucks is pushing ever more of its mobile and loyalty rewards programs and mcdonald's is offering $1 coffee no matter what size you get so everybody is stunning up their game. >> here's my big question -- they put a picture of you on your latte how did that happen? >> unfortunately, i didn't get to see them do that but i was pleasantly surprised when they brought it over. they basically said it's like

screen printing using coffee extract on top of the lattes they haven't figured out if they'll make it available to customers in stores. it would probably take a little longer than the customer who wants to be quick and on the go but it's cool and they're testing things across the board. but some analysts said given all the innovation they have that the 3% rise in corps store sales might be conservative and dunkin' could grow even more. >> that's the show for today, i'm contessa brewer, thank you for joining us becky will be back next week and we'll talk guaranteed income should low income americans get a monthly check that's not from the government keep it right here, we are on the money. have a great one see you next weekend

dawn is serving up dinner for a whole town! that table was like... so big! can one bottle of new dawn clean all the dishes? we did it! 6,000 dishes! a drop of dawn and grease is gone.

>> narrator: in this episode of "american greed"... an investment manager takes on the toughest clients -- retired nfl players -- and steals their money. $150 million vanishes before the fbi moves in. >> we found that they only had about $200,000 under management. >> narrator: but when he's tackled for a loss, will his game go into sudden death? >> the investors, particularly the nfl investors, were so mad at him that he was afraid for his own personal safety.