hello, everyone. welcome to "on the money." becky quick will be along with the rest of the show in a few minutes. ceo pay, do they make too much? toddler tv, channel for your little ones. is it a good idea? and the woman that doesn't want to think about it any more. why this advertising executive wears the same outfit to work every day. if you're worried your dream summer vacation could turn into a nightmare, the one thing you could do to make sure that doesn't happen. "on the money" starts right now. >> your money, your life, your future. here is a look at what is

making news as we head into a new wk "on the money." american c took a breath last month and that is not good news for the economy. spending is always important because consumers make up more than two thirds of the u.s. economy. analysts say bad weather is at least in part to blame. stocks didn't seem to mind. by thursday the s&p 500 hit a new record, and stocks were mixed on friday. >> verizon is opening up their wallet buying a.o.l. they are hoping to start pulling in ad revenue from their online and mobile presence. you might recall in 2000 a.o.l. and time warner merged in a deal worth $350 billion. >> and picture this, that picasso painting we told you

about last week sold for a new record amount of any painting ever sold at auction. the average ceo makes $13.5 million a year. that's more each day than the average worker makes in a year. is it capitalism at work or a problem in our economy. joining us is jim pethokoukis, and david madland, author of "hollowed out." he is also managing director at the center for american progress. the average ceo as we said makes on average, according to their study, 373 times the average worker. some say it is capitalism at work, but i think you believe something else is going on here. >> yeah, it is a problem and we

shifted the rules now. and that ratio has changed. it used to be ceos made about 30 times the average worker. the pay for workers has grown very slowly. the income from the typical worker has declined since 1989. so we have a problem where things like minimum wage and things are not going up. and those at the top have been able to structure the rules so they benefit et doing very well. >> if it is publicly traded, some would say that the board should step in. the ceo is taking the fire and meeting shareholder expectations. >> if you look at ceo pay in top companies versus the workers in those companies it's not like

400, it's more like 80. some of those ratios are greatly exaggerated. the median household income has gone up by about 40% since 1980. if you're looking at eye, 80 may be too high. things like compliant boards, lack of unionizations, by far the major reasons are technology and globu have much bigger comp run by ceos who can leverage their skills and compete with services of companies around the world thanks to technology and a more globalized society. those are the major reasons. and -- and listen, that is not even the biggest reason inequality has gone up. >> do you think there should be caps or a way to control the

ratio in a you and jim were talking about? >> if you look at other countries that is the easiest way to look at things. many of them have sustained and had higher income games for a vast majority of their workers. they have done much better, so it indicates something about the rules of the game and let's talk about one or two of the rules of the game. companies are able to deduct the performance pay of ceos that gives you -- performance as we know is unfortunately rigged. very rarely is it true performance. and they still get the tax benefits for the company. so it is very much about the rules of the game that we structure that have benefitted those at the top and not helped those in the middle. >> david, i assume that you feel

as though this gap or ratio may be damg to the economy? >> i do. you can look at that in several ways. first the very wealthy now have disproportionate political power, they do things that benefit them like cut their taxes instead of failing to invest in infrastructure and inflammation. the signifi reason we had the great recession is that ordinary citizens whose incomes were stagnant went into debt to buy houses. they were at extreme levels of debt because they didn't have enough money to purchase things. so the change in our distribution and the stagnation of the middle class harmed everyone. >> jim, is part of the solution here raising the minimum wage? we have seen large companies like walmart, target, they all made a move to raise the minimum

wage. is that a step, at least, in the right direction. >> all of the fortune 500 ceos made about $5 billion last year. it will not change the income for most americans. and most of the in gains at at top have gone to entrepreneurs. if you want to help most skilled workers, rather than raise the poorly targeted minimum wage, you want to increase wage subsidies like the earned income tax credit. not for college students or people that are not low income nap . e best thing to do is a highly educated workforce, we need more of those sbrup neuros creating more start ups, googles,

facebooks, apples, that's what we need. >> gentlemen, good discussion, thank you. appreciate it. >> no problem. >> up next, becky is back with more "on the money." should your baby learn their abcs from tv? and later, it's ground hog day every day for one woman's coworkers. hear why she wants to wear the same outfit to work every day. and before break, a look at how the stock market

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24 hour infant channel baby first tv. they're capitalizing on the educational programs by taking it to the diaper set for babies as young as sixth months old if is a little hairy territory. should p be concerned or is no tv just out of touch. sharon rechter is joining me. what skills is this channel helping to teach babies? >> it is tailor made for infants, toddlers, and parents. we're there to hold mom and dad's hand and help them introduce their children to math, vocabulary, and art. also asking questions like why, and how did things work?

>> parents are told that babies should not be watching television because it can stunt their social development. how do you know that it is teaching infants and not having an adverse affect? >> it is watched by every third mom in the country with a baby under the anyone of 3. 97% of american babies are watching tv. so the question is not should or shouldn't they, but what are our children watching? there are significant studies that show that children can learn from tv. there is a study done by the university of wisconsin, and the university of alabama, and they can learn certain things if you put them in t of game of thrones, or they can learn things like we teach dhem whic is art, music, and basic concept of words.

we encourage babies and parents to use a tool to interact. if there is a red ball bouncing, we tell the parent in a subtitle to ask your baby the color of the ball. it it gets the baby and the parent interacting. >> i let my son watch tv, it was like elmo. if the average is 100 minutes a day, is that just a baby sitter. >> as long as they use it as a tool to interact, learn, enjoy, and ignite a conversation, we think baby first is doing a great job for them. i'm a mother of four. i have twin boys that are six months old, and i'm a working

mother. there is a lot of guilty associated with being a mother these days. i will say if i need ten minutes to regroup in my mind, and i sit and took time with them, i feel better. >> if advertising is still yo bread and butter, how do you justify that because they can't tell the difference? >> all o our advertising is targeting only parents. we never target children with our ads. moms are listening to us and we find mom in a unique time of their life. they say you are not my doctor, but we're like the best friend that had a kid two years before you and is relaxed.

we only bring in the sponsorships that we think are valuable to the mother in this journey. >> up next, we're "on the money." steve jobs did it and so did albert einstein. don't miss the habit they shared that is simple for do you do

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those that want to feel well rested and enjoy the morning ahead. aleve p.m. for pain relief that can last until the a.m., so you, you, and you can be a morning person again. aleve p.m. for a b imagine wearing the same thing day in and day out. one woman does it happily. her article on why she chooses to wear the same outfit to work every day was shared almost 100,000 times. as women debating the pros and cons. joining us now is the writer herself. matilda kahl, it's not the same

shirt and pants, you bought lots of pieces of the same thing. >> i did it because i realized how much time and energy i could save by just picking out the aspect. >> was there a particular day when you were like that's it, i'm done. >> it was a mundane day. you look like a clothing hurricane throwing on and off stuff. i finally put something on that i immediatel on the subway platform. i get to work, and i see coworkers going to a meeting supposed to be already. my sweater was inside, and i thought it should not be this hard. >> i love your article because i used to go to a catholic high school, and it was great not putting any time or energy into

what i was wearing in the morning. frees your brain up. >> i heard about it. >> how long did it take people to notice or to tell you? >> about three years ago when i started, i just showed up, i think it was a wednesday wearing it, and i continued wearing it, but it was not until two or three weeks after that someone was like you have been wearing that for quite some time now, so yeah, and then obviously it was a little discussion at work that started. so everybody knew. >> so you a different reaction from men than women? >> i do. that is an interesting question. i have gotten it before and i realized that women get generally more into if it gets boring or not. meanwhile men just go to a positive point saying i can

totally see how it would be so much time -- >> what about outside of work? >> no, this is just to save me time in my workdays. outside of work i love colors, hats, crazy shoes. dresses, it's my time to shine. >> what's the strangest reaction you gotten? >> someone at work asked another colleague of mine, she was new there, and she asked so i noticed this girl who walked around the office in black and white, and something around her neck, and i think she is in a religious sect or group. i can't see any other reason she would . my old boss wasn't even thinking the first couple weeks that they were giving me too little money, that i could not afford new

clothes, so she said we have to give matilda a raise. >> i'm a fan, i think it's great what you're doing, thank you for joining us. >> of course, thank you. >> up next, a look at the news for the week ahead. and is it worth the peace of mind when you go on your dream vacation. we're talking travel insurance. is it ri i accept that i'm not 21. i accept that i'm not the sprinter i was in college. i won't accept giving it less than by best. if i can go for something better, i will. reducing the risk of stroke better than warphren.

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for more on our show and guests, go to our website otm.cnbc.com. here are the stories coming up that may impact your money this week. retailers walmart, target, and etsy will report earnings. tuesday new residential construction figures are due. wednesday minutes from the federal revev open market committee meeting will be recleared. thursday david letterman will host his last late night show on cbs. he is retiring after nearly 22 years on that program. thursday existg home sales data, and we get a look at the consumer price index. disneyland will kick off their 60th birthday celebration. the start of the travel

season is upon us. if you plan to take a trip, you may come across options for travel insurance. is it a good idea? shar epperson is here with more. what is the basics? what does it it cover and what is the costs. >> it covers a myriad of things. it covered trip interruption. there is medical, travel delay, lost baggage or baggage delay. >> when do you think it makes sense to do this? what circumstances warrant, you know, the effort and the cost. >> when you think about the cost of travel insurance, think 5% to 7% of the trip. you want to factor in how much you're paying for the trip. an expensive vacation, several

thousand dollars, $5,000 or more. you may to be covered. if there is medical, sometimes your insurance does not cover outside of the country. if you have medicare you probably want insu bec you're not covered outside of the country. >> when don't you buy it? >> you may have a credit card that covers lost baggage or baggage delay. that policy may cover what you need. so look at what other insurance coverages you have and see if you really need to get the travel i. >> say you want to do it, you are doing a big trip to africa or something along those lines.

how do you find it and evaluate what is best for you. >> we went to "top consumer reviews" and we said what are the best sites for the prices for you. there is a site called square mouth that operates like expedia. you can get quotes, and travel guard is another one you might want to go. if you're taking a big trip, plan early. you want the best prices to get there. >> it's good to have it. >> sharon epperson. that's the show for today. thank you for joining me. next week, becky is back with a look at our nation's veterans and tips on benefits available to them. we're here "on the money." have a great one,

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the breaking news we're following is out of montgomery county. firefighters are battling a three-alarm blaze at a business in conshohocken. we are live on the scene, straight ahead. plus, federal officials order amtrak to make immediate changes following the deadly derailment. what they say could have prevented the crash. good morning. this is nbc 10 news today. i'm rosemary connors. we'll have the very latest on the train derailment in just a moment. but first, let's get you back to that braking news out of conshohocken. nbc 10 ease monique braxton is live there on the scene of a business that is in flames right now. monique, tell us what you're seeing and what you're hearing from firefighters