hi everyone. welcome to "on the money." i'm be i'm becky quick. the form er oil president says get ready for $5 gasoline. and too much junk in your closet? now there is an app. a lesson in paying for college. you have heard the noise about 519s and how are they right for you? and are there alternatives. and if the shoe fit, sell it. a 16-year-old making big bucks selling preowned designer sneakers. starting right now. >> this is "on the money." now becky quick. >> here is a look a what's making news. the u.s. economy didn't grow quite as quickly as expected in

the final your of 2014. the fourth quarter gross domestic product, which is the broadest measure of the size and scope of the u.s. economy was released friday. slightly less than what economists predicted and due in part to slower business spending. however consumer spending was strong. a two day losing streak to rest after stocks climbed more than 200 points. some due to positive earnings. but the markets fell on friday. the earnings have been mixed overall so far. apple beat expectations as facebook and amazon. google, microsoft and proctor and gamble all fell short. and ronald mcdonald will have a new boss soon. after three years at the job he'll be replaced by steve easterbrook. sales have fallen recently. the company is facing increased competition and suffers from what some call menu bloat.

this week gas prices ended a streak of falling every day for nearly 100 days. the average price is 2:04. but former president of shell oil john hofmeister says don't get used to it. he sees higher prices soon. thank you for joining us today. >> my pleasure. thank you. >> you were predicting oil could hit 80 dollars a barrel by the fool and gas could be back at $5 a gallon by the end of the year. >> here is what's happening today. the industry is best in the world at cutting costs when they have to reduce spending. and what's happening is we're shutting douchb drilling rigs and not completing the wells that have just been drilled and we're going to eat off the surplus by mid year probably. and so as you go into the summer months and fall season you won't have the replacement oil coming

the way you might have if you didn't cut back cost and the global supply gets tighter and tighter. and we all know prices jum up like a rocket. and once that starts, i don't think it is going to stop. not until we get back to a different level of equilibrium when the companies go back to drilling again. >> let me play devil's advocate for a bit. because obviously oil prices are a supply and demand picture. i hear what you are saying about u.s. companies and the oil and gas companies around the globe reigning things in. not spending as much on expenditures as oil prices have fallen but it takes time for that supply that's already been drilled to to come back offer. is there a case that we could be looking at lower prices for let's say at least a couple of years to come. >> well of course you are absolutely right that global economic growth is a big determining factor on whether we have enough or too much supply. and i'm assuming that the predictions of global growth will come through, which is

where i base my prediction upon. but if global growth doesn't happen, then you are absolutely right. we'll have too much oil for a much longer period of time until indus cuts back even further. >> we should probably also talk about something else that happened in the news this week. the senate approved had bill to build the key stone xl pipeline. they did not get enough to override a veto and the presidented is expected to veto the bill. what effect do you think this has on oil prices, if any? >> nothing in the near term. the pipeline hasn't been there. we've substituted rail cars. a much more expensive and environmentally risky method of getting oil from canada to the u.s. we'll continue on that path. i don't expect approval of the xl during obama's tenure in office. whose the next president, democratic or republican i hope will take a fresh look at the needs of the country ten years

down the road and set aside the short-term politics of the day to do what is right. we need infrastructure. the whole world knows that. we have 85 pipelines crosses the border today. what a hub a loo over the 895? >> when you look directly at what consumers are doing they see the low energy prices and at the pump and you have to imagine it influences the behavior of what they up with in terms of what they are looking to buy their next car. i know you are in favor of a knew group using natural gas in vehicles right now. how tricky is it to get momentum for that when you are look at the $2 and maybe you should in some places for a gallon of gasoline. >> it is very difficult. a leon. but we'll face inevitable and perpetual volatility in oil especially as we approach the end of this decade. and if we do have some kind of

reasonable global economic growth, instead of 91 oar 92 million barrel a day we'll need a 100. and the industry doesn't know where that's coming from yet. so the reliance on oil can only come at a very high cost to consumers. and so we'll be looking at 4 and $5 gasoline in the u.s. as we approach the end of the decade on an ongoing basis. this is when you really can get some interest in natural gas. and natural gas can be turned into four or five diempbtds of products from cng. >> fossil fuel. >> yes it is a fossil fuel but it has has the molecule of carbon as oil molecules have. so it's reduction in carbon emissions by switching to natural gas. i but you can have ethanol and methanol for passenger cars. cng and lng for planes and trains.

and takes the pressure of oil and ends the needs to import oil. we're still importing 70 million barrels a day. and we can displace that foreign oil. >> yeah and from countries that don't always agree or see to yoo eye to eye with us either. thank you for joining us. >> thank you. >> the auto industry, last week in davos i spoke to mary barra. we talked about uncertain times. gas prices have come down dramatically. what does that mean in terms of the consumer behavior. >> long term we're investic in technologies and the electrification because again over the longer horizon. certainly we'll want to take advantage and be able to offer the vehicles customers want with this environment but there is a lot of uncertainty as everyone knows. >> my thanks to mary barra.

up next we are "on the money." get cash out of your closet. a new start-up helps re-sell your clothes and keep more of the profits. is there is a catch? we'll talk to the founder. and then first the government was going to tax them. but maybe not. how does a 529 savings investment work. but before we take a break look how the stock market ended the

if your closet is full of clothes that you don't ware. a tech start-up could help that turn into cash. tradesy is a up and coming online thrift store. tracy dinunzio is the founder.

first of you wiall you came up this idea because you had stuff in your closet you wanted to get rid of. >> the average woman only wore 20% of their closets last year. >> explain how tradesy works. >> it is marketplace, online only. a websitd a an app where women can buy and sell anything from their closets. >> before we even booked you or mentioned you around here i used the site. because my daughter wanted a coach bag and there was no way i was paying for a brand new coach bag for a 12-year-old. so explain, i will say i was very intrigued. you drew me in. the one thing i was nervous about was is it reel? how do i know it's not counterfeit. >> that's uniwione thing we do difficultly. if you ever receive anything from us that isn't authentic you get all your money back and a big apology. but we authenticate using

technology. >> how? looking at the pictures people take and post online. >> you can't authentic ate products but you can authenticate people. >> so if you get a good track record you will go along. if it's bad you take car care it from the backstop. >> and our sellers give us their address. beca i we send a shipping did kit to our sellers when they make a sale so they don't have to hassle with the packaging and postage. and it gives the ability to understand whether someone's authentic or not. >> why do you think you have advantage over ebay that's already out there for a thrift store nearby? >> i think we have a distinct advantage over both. ebay is a great company we admire very much but they serve 14 a major categories with the same platform. because we're only in platform we' fashion we've been able that

tailor the service to make it quick and easy. and in terms of consignment you only make about it 40% of the sale. on tradesy you keep 91% of the sale. >> good deal. you're up to about $45 millions. what do you who with that money? what comes next. >> we're mostly hiring particularly in data science team. working really hard to make sure we can connect the supply and demand and understand the products in our system. and some marketing too so that we can continue growing. >> you are only as good as the people selling on your site. how can somebody tell if something is worth selling and can how do they figure how to price it? >> anything in your closet that is in good condition is worth selling. someone will want it. anything can be sold on tradesy. and as far as pricing we actually give you a pricing suggestion based on our data what about what is selling now and at what price. and you can take it or not.

if it doesn't sell you can lower the price. so it flexible and easy. >> what is the hottest selling items now and what is the weirdest? >> our hottest items are including designer bags, also. a right now a lot of coats too. and boots. and the weirdest, we have a wedding section. and we have seen some very strange wedding dresses go. >> all right. well tracy thank you for joining us. >> thank you so much for having me. up next we are "on the mone money". one of the best ways around to save for college. there was a lot of noise about taxing them recently. thankfully that noise went away for now. what exactly is a 529 plan and is it right for your family? >> and later

ra lot of talk about 529

plans recently after initial proposal to tax the plan were scrapped earlier this week. but what are those plans and how do they work? are they right for you. joining us is a financial correspondent sharon epperson to talk about your money and the future. huge topic. we can't stop talking about it. >> and that is a great things because now people are paying attention to these 529 plans. they are a great vehicle for millions of families to save for college. and here is how they work. there are two versions. the college savings plan, works a lot like a 401(k) and ira. put money in and it invests in different mutual funds for you. set it on auto pilot and it directs the mutual funds that are more conservative as you quit close to your child going to catch. and also the prepay plan. puts money in today's prices for tomorrow's tuition. so you are looking at in-state public colleges. you can convert them to pay for private colleges or out of state as well. and then the private college

prepaid plan. saving for college.com. a great website. >> the up roar this week is because the president talked about in the state of the union address taxing some things that had been tax free before. >> here is the big perk. put the money in, it's after tax money that goes in. grows tax deferred and take t out tax free to pay for qualified higher education expenses. that is why people love it. that is why over 200 billion is in the ambulanplans. but the controversy is these are o reasonable rich folksizing these plans. >> that is not true. >> it is not try. the average amount in a 529 plan is less than $20,000. and the average regular contribution is a $175. so what i love about it is if you don't have the discipline, it gives you the discipline. >> right. >> automatics the savings. do a small amount every month and start to see how that is building for your child's education. >> we should mention you and i

both have them for our kids. >> yes we do. >> not only for our kids but anybody else in our family we try to talk them into going into these. >> exactly. one any my niece. they are great gifts as well and to give them the incentive to save for college. and it is a great option because it allows you to save a lot more than the other alternatives out there. >> what are the other -- >> you could put none that coverdale education savings but that is only $2,000 a year. you can put in a lot more money. some of the limits are a lot longer with a coverdale. custodial is also an option. but then they can use it for whatever they want when they become of age. usually 21. so what iffy decide not to go to college and use it for something else. and then of course you can also use a roth ira but that is your tax money. and again it should be earmarked for retirement. and again it is a taxable

account. financial aid is the other reason people love it because it is considered a parent's asset not a student's asset. >> we rarely advocate for what we think is the best idea. i think we both agree 529s are the best idea. get one. >> for millions it is the best option out there to safe for college. >> thank you. >> sure my pleasure. >> up next on the money, a look at the news for the week ahead. and it is a strange brew. social media, a pawnshop and sneakers. but one 16-year-old says his new business is jumping big time.

for more on our show you can go to our website. here are the stories coming up that may impact your money this week. more earnings on the way. exxon mobile, disney, general motors and twitter all reported. monday is ground hog day. if pungs tawny phil sees his shadow we could see six more weeks of winter. monday also by the way brings an important manufacturing index for january. tuesday we get auto sales for january and friday the labor department releases the big

number of the week, the jobs report and unemployment for january. most know that sneakers are big business. but bun entrepreneur with help interest from his dad 16-year-old opened a business for sneakers. it's off and running and kate rogers joins was the more. >> sneaker collecting was once considered a trend but believe me when i say it is booming. this teenager is cashing in on a business which is expected to hit 4.7 billion in the u.s. alone this year. >> most teenagers spend the money they make at their after school job on fast food, music, cool clothes and shoes. and in a lot of ways chase is no different. >> this is one of the biggest sneaker releases for me. >> he's turned his passion into an afterschool job and more. at 14 he had amassed $30,000 worth of basketball sneakers.

last year he sold his collection to open up sneaker paun u.s.a. in harlem. >> it's hard to let go because you're 14 years old with 200 pairs of sneakers and now you have to go back to zero? it's like this is not really fair. this can't be life. that's what i was looking at it as. until like -- until i got older and i'm like all right. it was really worth it. it was just part of becoming a young man and a business entrepreneur. >> like many 16-year-olds chase is hooked on instagram. only his goal is to drive foot traffic here to sneaker pawn u.s.a. to see what he has in store. these lebron crown jewels retail $250. they're selling them over 1200. his dad and business partner says those social media posts drive hundreds of calls and customers to the store daily. >> this is the new stock market

the markup is a 100 to 800%. >> the hype is real. in fact reports say the basketball industry grew by 20% in 2014 with no signs of slowing down in the years to come. >> with idols like bill dwagate steve jobs he has plans to open up more stores around the country. >> i get a nice shoe i'll end up selling it rather that be collecting it. >> it's learned the art of letting go, looking cool and making cash all before he turns 18. >> and chase and his dd dad say they are now looking for private investors to keep up with the demand. >> i love the spirit. but the one thing i thought, how did he come up with $30,000 for those shoes to begin with. >> that is the question everyone has. he is a child of divorce. and he worked up a scheme in early teens where he got his mom to buy him cool clothes and his

dad do buy cool shoes. and they're not necessarily spending all that. the markup is up to 800%. it's crazy. >> does he run this business r ? >> we interviewed chase and his dad. >> i said how much do you pay chase? and he said chase actually pays me. and then i asked chase how much do you pay your dad? he 100% runs this business. he comes in after school. it is just like his after school job. troy say he's hits the book ts at night. after studying he's playing lacrosse. he's definitely learning time management and definitely running the business. >> thank you very much. that is the show today. i'm becky quick. thank you so much for joining me. next week would you pay to score a hard to get reservation at a fancy new restaurant? believe it or not.

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super bowl sunday is here! from the preparations in arizona to the festivities in our area, we'll show you how the fans and players are getting ready for the big game. if you are going to a super bowl party tonight, you will definitely want to watch the forecast. as you can see on the first alert radar, a system is heading our way that may drop rain and snow. right now, all is dry as we take a live look at the center city skyline. it will be a little bit warmer today than yesterday, but you'll need the hat and gloves when you head out the door. still cold outside. good morning. this is nbc 10 news today. i'm rosemary connors. it's 5:30 on this super bowl