a good gpa is critical. how about a cpa? that's character point average? good morning. i'm christine romans. plus, what if i told you a student's academic achievement is determined by fifth grade? if that's true, why aren't we doing everything possible to build that foundation solid as a rock? and she may be the matchmaker but patty stanger has advice for all of you trying to date. the rules have changed. first, it's a milestone for america's middle class, back to where we were in 1996. new data shows a decrease the last ten years of the aerks of middle class americans. income fell to $49,500 last year, a level not seen in 15 years. and over the last ten-year period, income for middle class americans down 7%. don peebales is a member of

president obama's finance committee. is it officially a lost decade for the middle class? >> it's certainly a lost opportunity. we've lost ground. and middle class americans are really suffering. >> the top end has done well though. that's where you get this whole political narrative that the middle is suffering at the expense of the top. >> the what's happening right now is we're seeing a transformation or a dramatic change in our economy. we've gone from a manufacturing oriented economy in terms of middle class job opportunities, those jobs are now lost. many of them are lost overseas and so now, our economy is paying for intellectual property and ideas. so we're going to be a much more educated economy and the jobs that are going to be created are going to require a greater level of education. >> that's happening faster than american families can transiti n transition. >> don wrote the september cover story, can the middle class be saved. we certainly hope the answer is yes. but don, america's middle class,

it's earning less at the same time the cost of raising a chide has gone up. new data from usda. it now costs an ample $227,000 to raise a kid to age 1. that's an increase of 40% or about $60,000 compared to ten years ago. that's just for the basics like food, clothing, health care, transportation. it does not include college. what is the breaking point for the middle class here? >> well, i mean, think we're at it. if you look at birth rates since the crash, they've plummeted. so many people feel they can't afford children right now. their lives are too insecure. you know, even marriage rates have declined. you know rapidly since the crash. so in almost every respect, the middle class or millions of middle class people at least are deferring family decisions, families are shrinking as a result. and that's a tragedy for millions of people. it's going to have demographic

consequences, as well. >> for those of you thinking about not having another junior, i will give you the highlight from that report, as well. the more children you have, there's economies of scale actually. the per child cost goes down because i guess you share you know shelter and the like. i want to talk about education. frankly, that survey doesn't take into account education. you've got to save money. if you don't save enough money, maybe you can borrow it, right in the maybe not. according to a new survey college admissions officers say that they are actually looking for students who can pay full price. they say 22% of those admissions officers say that the economy is driving their choice and in some cases, money trumps smarts, grades, and a student record. don peoples, let me this straight. the middle class is earning less. it costs more to raise a child and you need to have all the money if you want your kid to have a shot at getting into college. >> colleges are businesses.

stanford university is trying to have a school here in new york city right at roosevelt island. the idea now is schools are being competitive trying to go and attract students who can pay to go to school. you have the middle class is being hit on many ends right now, loss of jobs, household income going down dramatically. the poverty rate has increased to the highest it's been in 52 years. education is more expensive. but there are opportunities here. there are student loans available. there are other types of grants available. and education is certainly a priority of the president's administration right now. and so there's a big effort to make education affordable because i think we all have to recognize that the future jobs in america are going to require a much higher level of education and skills. we're not going to be able to provide cheaper labor and larger pools of labor than say china, asia, latin american countries. we're going to have to bring something different to the equation. that's our intellect, our

freedom, the ideas, creativeness of america. that starts at education. so one of the things that we need to do all of us do, is we need to emphasize education and help pay for it. >> done peck, that's the problem, paying for it. middle class families have saved all this money and now going to pay full price for tuition. it doesn't feel fair when tuition keeps going up, up, up, when you know, income isn't going up. you don't have a house you can tap into to pay for tuition. is that a bubble bound to burst? >> i think to some extent it is. that's unfortunate. you mentioned housing. and housing has been critical to college attendance, especially for working class families, lower middle class families. they've historically used home equity to fund college. that's a hard decision for them. and now it's a decision that's out of their hands because of the housing bust. they don't have the bank accounts that they used to. a lot of lower middle class, working class families are

beginning to doubt the value of a college education, which is unfortunate and a mistake. i mean, i agree with don that we really need to make education a priority. we need to make sure that it is affordable to and available to all of america's citizens. unfortunately, it seems to be going in the wrong direction right now. >> next, can success be determined by the fifth grade? and how crucial is building character in school? should kids get graded on their character? that's all coming up next. prescription strength relief t from my worst allergy symptoms. so lily and i are back on the road again. with zyrtec®, i can love the air®.

you know, the ones who do such a super job, so lily and i are back on the road again. they're backed by the superguarantee®? only superpages®. wherever you are, wherever you're going, you'll find the super business you need. so next time, let the good guys save the day.

get the superguarantee®, only at superpages®. in the book ... on your phone or online. sun life financialrating should be famous.d bad, we're working on it. so you're seriously proposing we change our name to sun life valley. do we still get to go skiing? sooner or later, you'll know our name. sun life financial. there's so many choices. the guests come in and they're like yeah i want to try this shrimp and i want to try this kind and this kind. they wait for this all year long. [ male announcer ] it's endless shrimp today at red lobster. your favorite shrimp entrees, like garlic shrimp scampi or new sweet and spicy shrimp. as much as you like any way you like for just $15.99.

[ trapp ] creating an experience instead of just a meal that's endless shrimp. my name is angela trapp. i'm a server at red lobster and i sea food differently. >> the some 46 million americans live in poverty today. some are locked in the grip of generational poverty, unable to escape the circumstances of their parents. millions are children brought up poor through no fault of their own. and many are new to these ranks. squeezed out of the middle class by a great recession that scarred virtually everyone except the very rich. so too many people live in poverty. a salute now to the people who are working to fix it. >> i sign my papers today for my bankruptcy. >> carrie thornton is an unemployed mother of four with $175,000 in debt. >> i couldn't afford daycare. so i have lost my house and my car and my job.

and i've been on the system and it's just a struggling circle. i can't get out of it. >> she turned to circles, a non-profit community group with a simple goal. to end poverty. >> we take people from all walks of life and sit them down to the table together. and they solve situations which allow people to remain in poverty. >> i have a job interview on thursday. >> the group pairs those who are struggling with a volunteer mentor or an ally as they call it to help make an action plan. >> ally's primary role is to ask one question in any circumstance. what do you need from me, not how can i fix it, not do you need money. but what do you need from me? >> circles is in 23 states and 63 communities. ceo corinne van zandt says the faces of poverty are changing. >> we have a lot of families that were right on the cusp of middle income that have fallen

into poverty. through foreclosures, divorce. being laid off from their job. >> carrie's still looking for work but knows she's not alone. >> a bunch of people are in your same situation. so you can know that you're not the only one out there. >> yell. i still feel like i'm poverty. >> the kashmia isn't afraid to admit her reality but the 19-year-old single mom does want to change it. >> i have a lot of expectations for myself and i'm not there. >> she says she was kicked out of her home when pregnant and looking for somewhere to turn. with no income, she turned to a shelter and the shelter suggested circles. >> our goal together is so that her life will be better. >>en an there's kathy, a loan processor till the subprime crisis hit. >> we had leased vehicles, credit cards, the whole nine yards. and when i lost my job, that really hurt us. >> she came to circles for support and never considered

herself in poverty because she says she wouldn't allow it. >> i would make sure we won't have gone on the street come hell or high water sue she's gone from $15,000 in debt to just $600 in debt. she was able to remodify her mortgage, find a job and she is now an ally. >> then i had this group on top of it. and i was never poor. never. >> as for kashmia, she'll be moving into an apartment and has a job. her number one goal? >> to be a great role model for my child and be successful. >> as you can see, there are clearly two economies, right now, the haves and have nots. don peoples, how do we close the gap between those two. >> education. we have to rethink how we approach jobs. ulf us have alignment of interest those this the top end of income and those in poverty. we all have the same goals. and so what we have to do is start looking for with a wide angle lens supposed to a myopic

lens. organized labor has to find out a way to make american workers more competitive with global markets. we as businesses have to become more efficient and look to create better opportunities for employees and continuing education supporting them through additional educational opportunities. beat do that at our company. i think we also have to look at tax policies now that incentivizes job creation. >> we hear about taxes now that the rich aren't paying their fair share and it's just not fair. you should raise taxes on rich people. >> what needs to happen is we need to eliminate or get away from this debate of class warfare or this anger and frustration. but how can we work together to create jobs and better opportunities for many people? and for all-americans? >> john peck, let me have you weigh in on this. the haves and have nots, the haves are certainly getting a beating these days from washington and the media. >> well, they are. and you know, some of that is

unfair. we should continue to celebrate people who have made great achievements in their work. i have to disagree with don in one respect. we've kind of reoriented the economy over the past 20 or 30 years. we've oriented it in a way that promotes rapid technological advance, globalization. has advantaged people at the very top of the economy. at the same time, we've expected less and less of those people. marginal tax rates have fallen and fallen since the mid-20th century. so the solution to our national problems is not soaking the rich. but i do think that we should expect the rich to pay a little bit more to help the millions of american american who have fallen out of the middle class rebuild their lives. >> don peck, don peoples, thank you. a potential high school dropout can be spotted as early as fifth grade. my next guest says there's no reason to spot a failing student, intervene and fix it next.

three smart new ways to sweeten. same great taste. new splenda® essentials™. what if we designed an electric motorcycle? what if we turned trash into surfboards? whatever your what if is, the new sprint biz 360 has custom solutions to make it happen, including mobile payment processing, instant hot spots, and powerful devices like the motorola photon 4g. so let's all keep asking the big what ifs. sprint business specialists can help you find the answers. sprint. america's favorite 4g network. trouble hearing on the phone? visit sprintrelay.com. exclusive to the military. and commitment is not limited to one's military oath. the same set of values that drive our nation's military are the ones we used to build usaa bank. from free checking to credit cards to loans, our commitment to the military, veterans, and their families is without equal. ♪ visit us online to learn what makes our bank so different.

usaa. we know what it means to serve.

what if i told you that a student's academic achievement can be determined by say fifth grade? if that's true, why aren't we doing everything possible to build that foundation solid as a rock? bob weiss is the former governor of west virginia and now the president of the alliance for excellent education. and nancy karlsson page from leslie university and the author of the book "taking back childhood." governor, you first told me the statistic, fifth grade. that you can see a child going off the rails academically by fifth grade. what are the warning signs? >> they're pretty intuitive. the important thing is to do something about them. first of all, declining academic performance, second increased absences, tardiness starts to go up. and number three, disciplinary. i would add a fourth one. that's what researchers established in if you get a good data system, you capture it, you intervene and the ability to read and write at your grade level because by eighth grade,

we see on the only federal or national test, we see 25% of our kids reading several grades below grade level. i can go to any state look at that score and tell you within a point or two what their dropout rate will be within the next three or four years. >> why don't we use that data and intervene fiercely when we see districts or subsets of kids or states that are failing? >> good news is more and more we are, but we're not doing it on a widespread basis. only recently have we really adopted data in education. what he can do with it. i would look at the early warning indicator as the check engine light on your car. you car doesn't necessarily have to grind to a halt but there are certain steps you need to intervene every day. good teaches see this every day but the ability for one good teacher in one classroom to communicate to another teacher in another classroom to make sure the whole system is responding, that's what we need to be doing. >> >> i want to talk to you about the importance of building character in our children.

you call it eq, that it's more important than iq. what do you mean by that? >> i love this idea. i started an institute at leslie university where we trained teachers in this very area, sadly we see fewer and fewer programs like this right now, social and emotional programs, anti-bullying, they all foster what you would call character development or eq, emotional quotient versus iq, intelligence quoent. but the important thing is that in the best of education, we would understand that cognitive social and emotional development are deeply intertwined in the human brain and systemically. we talk about them separately, but if you look at research, children who are in programs that foster social and emotional awareness and skills do better

academically in school. that's a flat-out fact. and something very important to understand because the way that we're influencing with ed policy today, most of our classrooms is to be narrowing the curriculum, taking the social and emotional aspects, the community building aspects away, focusing in a sort of didactic way on reading and math because of high stakes tests and losing the opportunity to really be nurturing the whole person and ultimately the whole citizen. >> you know, governor wise, it's interesting because i was at a business meeting this week around the u.n. general assembly and there was someone involved who said he would turn down a traditional student because they're too traditional. they're looking for that eq that they're talking about, they're looking for that grade point charter average. >> i happen to believe chakter and character building is an

important part of education. it is an important part of the social program we were able to get involved in county system, a character program. this is something that can be worked into all aspects of curriculum. when you're working with science, what are the ethics that are involved here? when you're working with math, what are the implications? character needs to be built into every aspect of the education system. >> if you think money is going to solve the problems in education, but it doesn't necessarily -- >> and money makes strategic investments, but this is about a culture of education and building a culture is critically important. >> nancy carlson, thank you both today. have a great weekend. love and money, have the rules of dating changed in this tough economy? bravo tv's millionaire

matchmaker, patti stanger, she says yes and she sars advice with ali and i next. [ angela ] endless shrimp is our most popular promotion at red lobster. there's so many choices. the guests come in and they're like yeah i want to try this shrimp and i want to try this kind and this kind. they wait for this all year long. [ male announcer ] it's endless shrimp today at red lobster. your favorite shrimp entrees, like garlic shrimp scampi or new sweet and spicy shrimp. as much as you like any way you like for just $15.99. [ trapp ] creating an experience instead of just a meal that's endless shrimp. my name is angela trapp. i'm a server at red lobster and i sea food differently.

since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future. ♪

love and money in the great recession. have the rules changed when it comes to dating? i recently sat down with my work husband, ali velshi, and supposed these questions to the authority patti stanger. she's the star of the show based on her business, the millionaire matchmaker on bravo. >> who pays? >> he who asks pays. >> or she who asks. but there's the four to one rule. every time a man takes you out four times, we give back, such as make dinner. something that you do not touch the credit card or cash because when he do that, he goes like this. >> do you let your date know that you have 35,000 in debt? >> the problem is going to be that the women, if you're down trodden, the man wants to rescue

you. so that is attractive sometimes to the millionaire man. he likes the woman that doesn't challenge his opinion, doesn't have a better job than him and -- >> how boring. >> i know. but that is biology. if you're a man and you said that to a woman, what would we do? we would run for the nearest exit. >> has that change in this economy, with more people unemployed, with more people with debt? >> you shouldn't be dating if you can't take a girl out for cocktails or dinner, you shouldn't be dating. >> i saw that one in five relationships begin online now. what do you think? >> they can lie about how much money they have, they can lie about how successful they are. >> it's just like the bar. when you go to the bar, you have to be in public places and screen people. one in five is true because we're meeting people that we would never, ever meet, never associate with. >> once you're in this relationship, what do you suggest? do you suggest that people handle money issues a certain way? >> yeah. when you're exclusive and now you've pooled your resources

together, especially if you're living together or you're married, you have to make a decision. if the woman makes more money than the man, which was my case in the last relationship, we have to feel like we have to pay more for the mortgage, pay the electric bill, bring the groceries home. you want to live a knight nice life and you don't want to always be fighting about money. >> fighting about money is always a point of contention in relationships. sometimes savers are attracted to spenders. when you're courting and you see someone's generosity than when you're in a relationship or a marriage you're saying, woi wow, you're spending money we don't have and it's gone from what you admired about the generosity with now you're upset about it. >> kim kardashian is going through with kris humphries. he makes extra dollars per year and she's making zillions of dollars and she's like, what do

you mean, we can't spend this .this and he's like, no, we don't know what tomorrow brings. you need a money mediator. >> fewer people are getting married and they're living together. >> it's financial security and they don't want to pay out at the end of the day. that's why hollywood, 90% of them are not married. >> thank you so much for having us. >> thank you so much. i enjoyed being with you. >> you married for love, right? >> we married people for love and who were good with money. >> you can always earn money, you can't always fall in love with somebody. >> oh, can i steal that? >> yes. you can always lose money, but if you work at it, you won't always lose love. >> catch patti on bravo every thursday night at 9:00, 8:00 central. the conversation continues online. find me on facebook or twitter. back now to cnn saturday for the latest stories making news. have a great day, ever