hi, everyone. welcome to "on the money." i'm becky quick. stocks recover from a rough summer storm, but now, new worries surface. where do we go next? now, scinnabon is trying to change a business and the amazinm hooters girl to the corner office. why schools are more in need than ever and the unusual items parents are being asked to buy. back to school lessons for your kids. on the money starts 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 were flat in july. that was below what analysts had been expecting. americans spent more on food and clothing, but less on cars. consumption is closely watched. retail earnings weren't so hot either. macy's miss estimates, walmart matched expectations. kohl's and nordstrom came in ahead. in spite of the soft economic news, a dow turned positive with gains on wednesday and thursday. stocks were mixed on friday and if you were smart enough or just lucky enough to buy a class a share of berkshire hathaway way, now now have $200,000 to your name. it is by far the most expensive of any stock trading in the united states. grk e is confirminging there have been talks to sell its

business ge wants to focus efforts on his more profitable industrial equipment business. stocks seem to have gotten past a rocky patch, but that doesn't mean it's a smooth ride for the rest of the year. there are new worries out there, so, what does it mean for your money? joining us now, ellen zentner and christina hooper, head of investments. welcome. either of you feel like we dodg a bullet here? it looked like we were going to see a pullback, then things look like they're coming along. >> i think this is just some of the normal volatility we see when we have geo political ooempbts occurring in tbackgroud and then a day of bad data, then a day of good data. it felt like your normal

volati volatility. if you look at domesti i the u.? there's not really been a catalyst that would say this is the start of a pullback. >> it has been a long time since we've even seen a 10%. >> that's correct. given that we continue to have a fed supportive of stocks, so that now that we're anticipating something of a handoff, a reduction and accommodation, the start up had fund rates being hyped in 2015, we might see more volatility, but doesn't look like there's a significant correction on the horizon because data continues to improve. >> we did get a few things that corned a lot of people. one is retail sales being lower than expected. then we heard from chains saying they're concerned about what they're seeing from a consumer. >> it's tale of two worlds, really. we have those who have reall benefitted this this post global financial crisis environment. but that's contributed to asset

inequality. so, the high er end consumer is doing fairly well. other consum struggling more. they haven't fully participated in this recovery, but have done some things to improve. including deleveraging. their household debt ratios have decreased and the kind of debt they're taking on is more cap ex. personal 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 robust spending giving we're still working on the kinks in this recovery. >> how big of a problem is that because the consumer makes up two-thirds of the economy. >> that is a big piece of why the u.s. economy has had hard growth for so long. 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 low income groups. that's what drives their spending and we've had sluggish wage and salary growth. the retailers you mentioned are those that cater to that low income consumer. t sort of a no brainer why they continue to report sluggish results. >> it's something the feds can't fick. it's hurt savers. people on a fixed income or something like that. you think the fed's not going the 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 now, they're not going to be able to. they're not going to be able to communicate it well to markets and some positions will lead janet yellin to delay. >> this is interesting.

the fed's stiuck in a little bi of a position and there's a lot figure out if the next move is going to be for rates to tick higher or lower and how the bond market itself drives things. >> absolutely. but what we know is the fed is committed. despite the fact that monetary policy is a blunt instrument, not a surgical tool, we know the fed is committed to supporting this economic recovery so, when they decide to increase rates, it's going to be because thai look they've looked at a big mosaic and feel comfortable. >> what does an investor do at this point? >> it's all about time horizons. for the investor that has a long enough time horizon, they need to have adequate exposure to stocks. >> what does that mean the if i'm looking at investments over

the next five years? >> that means you need some exposure to stocks. especially if you need to fund a retirement or an education. what we're seeing is several investors that worry us. those that are risk averse. they're sitting in cash and levels are really high. then a cohort of investors that wants to be in it, that has watched this five-year bull market. experiencing feelings of regret, wu doesn't know when to get in. they're waiting for that correction. exactly. then another cohort that's in it but is not committed to it. where there's significant moves out, really the drop of a hat. so, what we need is for those cohorts and investors to get more comfortable with this market. and really have this adequate exposure that enables them to meet their long-term goals. >> thank you both for coming in today. up next, we are on the money. isn't it sweet? cinnabon going beyond the mall.

hitting new products and partnerships and later, back to school shop iping is in full swing. why you may be spending more eve to support your kid's school. right now, take a look at how the stock market ended the week.

cinnabon is a scent and a taste the customers remember and they're betting it will help its new products. kat cole is president of cinnabon and thank you so much for being here today. it's been hard to keep my hands off these thipgs sitter. i licked half the frosting off. >> as you should. >> these things are great, i see what you're doing with these. how many brands do you have

outside? >> we have the normal blue box classic cinnamon rolls. that is a big partner like pillsbury, kelloggs and international delight. >> how do you come up with these ideas and figure out what works? >> the ideas come from many directions. one would be our development partners. we rely a lot on our partners. we benefit from their ideas and innovation, but cinnabon is an expert in indulgence and so, pillsbury benefits from what we learn. we have become excellent at being a flexible and collaborative partner and leveraging each other's insights and our valuable expertise. >> i imagine you have to have some floss. what's something you threw out before you tried it and what's something you tried and it just

didn't take off. >> one ite ts our early, early venue until licensing was lip balm. we had a cinnabon lip balm. but a very small market, decided the prize wasn't worth the effort to keep it going. wasn't a big enough connection to the consumer to really warrant the continued effort. >> but you're not afraid of taking chances. >> we celebrate failure. >> what does ma mean? >> we have a culture of exper menation, so, we challenge each other and our partners to bring us whacky ideas. we even launch a pizza b orkbone a pizza roll with no cinnamon and frosting. sounds odd, not totally in line with the brand. it was not successful in the bakery, so we learned a lot from it and that was more valuable than the product's success. >> i would say so, the failures probably teach you more. >> no question. >> we love stories here about

unusual past success and you have one of those. very famously started out at the hooters girl. you were in college going for an engineering degree. >> yes. >> so, you were working as a hooters girl and you quit college. why? >> i had start traveling all over the world to help hooters open their new franchises overseas. i was lucky in that i joined a growinging restaurant company. they just happened to be expanding globally and at the same time, they were looking for key employees to help train the new staff in these restaurants and i was chosen because i had worked every job in the restaurant. i was a cook, a dishwasher, a manager, i waitressed, barten r bartender bartendered, you name id, i had done the job. i came back from australia when i was 19 opening that restaurant and thought, this will never happen again. it's a once in a lifetime experience. i'm just going to go back to college and follow this very typical path and 30 days later,

they asked me to go to mexico, a few months later, i was in south america and it quickly became a clear passion and something that i loved and was very good at and i was also failing college because i was gone so much. then, i had to make a choice. luckily, it turned into a wonderful career. >> you got your mba though. >> i did. some programs, some colleges have a program, it's very rare, where if you have enough business experience, some college and you are able to score really higher than average on the g mat, they have to manage their risk of course and i was able to accomplish all of that. took the g mat, passed it 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 to georgia state for doing that. went through the program, graduated two months after i

started at cinnabon chief operating officer. >> do you take chances on people? >> i do. i definitely employ a more entrepreneurial set of team members. i think i have the ability to believe in people more than they believe in themselves because i am the beneficiary of others believing in me more than i believed in moist and i allowed me to rise to the occasion and become a much better version of myself. i also hold them to a very high standard. >> we've been talking about these cinnabons and they are delicious and they lure you in, but they are lots of calories. do you eat these? >> i do. more often than anyone thinks, but i have a lot of discipline around my normal dietary habits, which is healthy and clean, then i am really bad and i indulge and i love every minute of it. >> thank you for coming.

up next, we're on the money, parents are buying notebooks, pencils and paper towels. and later, it's

the year's second biggest shopping season after christmas is upon us. it is 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. tim sullivan is here. it hoss more than 500,000 school supply lists. you really know what's happening. >> we do and it's all current, 2014. >> this year, you saw a 29% increase. >> just in last year. it's so many items now and parents, a lot of the pressure from school budgets is passed on to parents. >> what kind of items are they asking for this year? >> no one's learning with hand sanitizer. >> is this something, i'm surprised to see the increase between last year and this year. i would have expected that closer to 2008 and 2009. what do you think's causinging that now? >> i think the financial crisis ma lar econom but school budgets are

under as much pressure as ever. so that pressure goes right to parents. >> so, with more items on the list, is that good news for retailers? does that mean they'll be seeing a boom this time? >> i don't know if a boom, but a lot of those dollars the school used to spend industrially is now passed to parents and retailers. >> how do people do their back to school shopping? i think about my household, i rarely get out to stores, i order a lot of things that come in boxes. >> it's tricky to do that with school supply lists because you need that list. >> you stand many the store with the list and kind of check it off as you go? >> that list is still driving most of these sales. >> are there ways parents can find bargains? >> i think that's the best news to come out of this. is that because this time of year has become more bigger time for stores, the stores are now competing for parents shopping. just like christmas, like black

friday. if you're looking for deals, you can find them. coupons, discounts, it's a great time to shop for deals. >> i guess the stores think if they get you, this is the time you're out. they want to keep you there and r as many things as you want. >> if pencils and pens and notebooks, you're buying backpacks and ipads and jeans and shirts. >> when it comes down to parents being able to buy all this and afford this, if there's a 29% increase, how is that going to impact those families? >> i think that's the hardest part of this. especially in that e e less well off. if it's passinging on to parents and they can't afford it, we don't want kids in class without pens and pencils and notebooks. that can't happen. in most schools in those areas are being more careful with those lists. in schools where they think parents can afford it. those lists are really growing. >> thank you so much for joining us. again, tim sullivan. up next, a look at the news

for the week ahead and we're taking your kids to school. the money dos and don'ts they should learn for their financial success in the future.

for more on our show, otm.cnbc.com and follow us on twitter. here are the stories coming up. we'll be getting quarterly

results from lows and home depot. first thing is consumer price index. also, housing starts for the month of july. google will be scelebrating the tenth anniversary of its public offeri tue is the deadline for bids. on wednesday, the federal reserve will be releasing minutes from the july meeting. thursday, we'll be getting existing home sales from july. the results from financial literacy show american teens have a lot to know when it comes to money. no matter how old your child is, there is a lesson you can teach them before they head back to school. sharon, i have to think that at every age, there are things kids should be learning, but what about elementary school? >> we both have young children and one of the first thipgs you can teach your child is how to earn money.

whether that's just doing chores or setting up a lemonade stand. show them the importance of earning their own money. how to make good choices and what do you spend your money on? what you really want or what you need to have right now. >> saving things. if you want that big ticket item, you're going to have to save for several weeks. >> exactly. and teach them how important it is to save by opening a savings account and going with them to the bank. >> you have a sop in middle school. what are you teaching him? >> one of the things that's important is comparison shopping. he is one who gets on the computer and will look and compare different sneakers from different companies. get the coupon from a coupon web seat and present to mom, here are the different prices. i'm going to put it in the cart. he loves a bargain and comparison shopping and e les is to learn how to comparison shop, learn how to get things on sale.

the other thing that's important to know is about the limits. not spending more than x amount on this and you shouldn't either, but that comes in to play with cell phones. my son is just, a lot of his bills. ar set those limits there as well. o get her ning, you a new pair by the fall for school. do you really need them right now? is there something you can wait for or do you have to have it at this moment. stressinging the importance of delayed gratification, that's something adults could learn as well. >> what about the high school kids? what lessons if you're in high school, getting ready to go to college? you know how to balance a a checkbook? it's important to balance that checking account and it's as simple as keeping your receipts

and any receipts you're getting as you're shopping and buying the purchases and also making sure you line them up with whatt and understanding that is a key lesson. you also need to make sure you understand the importance of saving again and buildinging up that emergency fund. that's going to be key. >> thank you. that's the show for today. i'm becky quick. thank you so much for joini ini me. next week, business, including from celebrity winemakers. have a great one, everybody, and i will see you next weekend. (yawn) (ding!) toaster strudel! more fruit in the filling, ya? mmm! ya! warm, flaky, gooey, toaster strudel! now, with more fruit!

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nbc bay area news starts now. >> game on. it was and then it wasn't. all eyes on levi stadium today for the first 49 game at their new home. the stadium certainly shined. the niners, not so much. it was a packed house for the first part of the game. it was the very first nfl game at the venue. good evening. thank you for joinging us. it was one of the biggest tests for fans make it in and out