>> Production funding and educational outreach for Biz Kids is provided by a coalition of America's credit unions, where people are worth more than money.

A complete list of individual credit union funders is available at wxxi.org.

>> Every day, America's credit unions help members with their financial needs and with programs like Invest in America.

It's only fitting that credit unions support Biz Kids because financial education is what we do.

Learn more at lovemycreditunion.org.

>> You say "action," then I'll go.

>> You know, when I look out over the beauty of the vast prairie, it makes me want to drive through it in an SUC.

>> What?

>> SUC?

>> Yeah, you know, a sport utility carriage.

They got the big things... you can drive them anywhere, you know?

And they've got the rims on them, they spin.

They still spin.

Looks like... when they stop, makes it look like you're still going.

They spin.

>> You can't just want something.

You have to set goals.

>> Goals?

>> You have to be specific.

You have to have a sensible plan on how you're going to get the money.

You have to be realistic and relevant.

>> Look, have you even seen these rims?

I'm telling you, they spin, while you're just sitting there!

>> Grandpa!

>> Don't be a spoilsport.

>> I'm not.

I'm a Biz Kid.

>> ♪ When making money is the aim ♪ These kids they bring their game ♪ They're the Biz Kids can you dig it ♪ They know what's up and let you know ♪ Just how to make that dough ♪ They're the Biz Kids right on ♪ So learn a little more about bringing money through the door ♪ They're the Biz Kids right on.

♪ >> So what's your goal?

>> Huh?

>> If you don't have a goal, you're not going anywhere.

>> What's your financial goal?

>> Well, I'd like to have a car by the time I turn 18.

>> That's great.

That's a great goal for someone our age.

It may take time to make that kind of money, so it's better to start now.

>> Okay, so you've got a goal, but now there are some things you need to do to make sure you achieve that goal.

>> You have to budget.

You have to track your spending and make sure it's not too much.

>> And then invest the leftovers.

>> You do that, and as time passes, you'll come closer and closer to achieving your goal.

>> And when you reach your goal, I've got the perfect license plate for your car.

>> Sweet.

>> Thanks.

>> Every Biz Kid knows the importance of setting a goal, and then making a plan to reach that goal.

Start with a budget, and then try to spend less than you make in order to save a little money every month in a secure savings account-- say, like a bank or a >> Cut!

Cut!

>> I'm Zoe.

>> I'm Sarah.

>> And I'm Sydney.

>> We're Girl Scouts, and we make soap.

>> And we're going to clean up.

>> Our specific goal was to raise half of the cost for our Costa Rica trip.

For all of us together it's going to cost $6,600.

So out goal is to raise $3,300.

In order to make our goal of $3,300 we'd have to make... >> Eight... >> Seven... >> No, 20... >> I don't think we're going this right.

>> The math does not work that way.

>> I think it's seven and a half when we get half of it.

>> That would be three... like, three and a half.

>> We need to sell 660 bars of soap in order to get to Costa Rica.

>> Hi, guys.

How are you doing?

>> Hi.

How are you?

>> Good.

Bringing more soap, huh?

>> Yeah.

>> Okay.

We sold quite a few, so... >> Okay.

Well, how about if we give you two of each?

>> Okay, sounds great.

>> Okay.

Here's two rosemary.

>> The soap, it does take time.

>> Yeah.

It's not ready when we need it to be ready.

We have to plan in advance.

>> So then what's that divided by that?

>> Like, we wanted to sell it at Christmas, so we had to start making it in October.

>> That's perfect.

>> Okay.

>> And after we put that in we put in the shortening.

>> Yeah, we're at 10.25.

>> The final thing we put in is the coconut oil.

>> Once we mix it, we'll heat it up and then try and cool it down.

>> I'm going to move the lye, you guys.

>> Mix the lye water mixture with the oils.

>> It has to be constantly stirred.

>> It takes a long time to cool down.

>> Costa Rica, Costa Rica, Costa Rica, Costa Rica... >> Everyone knows about Girl Scout cookies, so when they think of Girl Scouts, they think of cookies.

But with cookies we make, what, 30-something cents per box.

We right now are making four dollars and 65 cents per bar.

>> Look at the soaps.

>> Yeah, the Girl Scouts make them.

>> Should we get one for Grandma?

>> The customers, they see a lot of the girls selling cookies and stuff, but they don't see the girls doing this very often.

So when the customer sees stuff like this, they absolutely love it.

>> This was our first order form/organizer.

>> Originally this was where we did all our financial planning.

>> This is what we've graduated to.

>> Right now we have $2,400 of the $3,300 that we want to have, so we are getting pretty close.

Actually, with this last batch of soap, if we sell all of this, then we're going to be there.

>> But to go to Costa Rica, we each need to sell 80 bars right now.

When we're making our soap, this assembly line is really efficient, because we calculated it, and we're spending about 50 hours making a triple batch of soap, which means from our profit that we're making about ten dollars an hour per girl.

>> Six?

>> Let's put six in of each.

>> Six of each, okay.

>> After this then they go to the stores.

I guess it makes me feel like I deserve to go on my trip more, because... >> Yeah, it's more... >> ...I earned it.

>> Yeah, because, like, if someone just gave you $2,200 and was like, "Go to Costa Rica," like, that would be really cool, but, like... >> That would be really fun, but... >> But when you... like, when we put all this time in, it's like that's... finally we get to do that, and it's going to be so much more rewarding, I think, that we'll have, like, completely earned it.

>> And it's empowering, too, to know that you can raise that much money.

>> Yeah.

>> Robert Johnson had a goal of buying... >> His goal was to goal.

Goal!

>> You know, looking out at the vast beauty of the prairie, it makes me want to have a deck.

>> Think of all the lumber and nails it would take.

Have you even thought about how you're going to reach that financial goal?

>> I just want a deck.

Is that so wrong?

>> No.

But you have to make a sensible plan on how you're going to save the money.

You have to be realistic.

>> Oh, all right.

Realistic.

Well... oh.

Here's what we can do here.

Look at this.

There.

Right here.

Ow!

Box.

There.

There, see?

Ah, that's much better.

>> Seems like everyone nowadays is just telling you to spend and then spend some more and then spend some more after that.

>> So why even bother saving?

I mean, everybody knows it's way more fun to spend.

Yeah, except if you really want to buy something and you don't have the money to do that.

So it's also really important to save, even though it kind of bites sometimes.

>> But it would bite less if you save now.

>> Especially if you want to buy something really big, like this.

Oh, or something bigger.

Anyway, the point is that you have to save so that you have enough money to buy something like that.

So by having a little less fun now you can have more money to have fun with later.

>> And that's an opportunity cost.

>> But that's another episode.

>> You have to set financial goals, otherwise you're never going to get anywhere!

It's all about goals!

Like take a look at me.

Huh, huh, huh?

Huh?

What?

>> What do you mean, substitute teacher?

>> Well, do you think that I got to where I am today overnight?

Do you think this happened overnight?

No, it took years of careful planning for me to get to this place, okay?

And the first step is to take a hard look at yourself.

Like this kid.

>> Huh?

>> Have you done that?

No.

Are you?

No.

Have you?

I know you haven't, otherwise you would have seen that thing on your shirt.

Get rid of that.

The important thing is to take a hard look at yourself.

Look at your spending.

Are you spending more than you make?

Wrong, wrong, wrong.

You've got to spend less than what you make.

Less than what you make.

And then the stuff that you have left over, invest it.

You've got to invest it.

And then your money will grow.

And as your money grows, you'll get closer and closer to your... to your... >> Goal!

>> You may think you know how much you spend or what you spend your money on.

But if you take a good look, you might be surprised.

>> This bill can't be right.

>> A lot of money goes out in ways we don't even think about, like a bag of chips after school, or your text messaging bill on your cell phone.

>> What?

This can't be right.

>> The best way to start a budget is to keep track of all the money you spend-- where do you spend each penny?

To do that, you're going to need a pencil and a piece of paper.

>> This can't be right.

>> Start keeping a financial diary, and write down all the money you spend.

What?

Oh, this can't be right.

>> We string racquets.

>> We thought that while we're stringing our own racquets we might as well make some money doing it.

>> I got started in stringing just because my mom in Germany, she was tired of paying the string money too, and my tennis coach in Germany taught me how to string.

>> Marco is the fourth exchange student that our family has had, and the only one that has been a tennis player.

Sometimes we forget he has another family, because we love him so much.

>> My mom taught me the basics and fundamentals of tennis.

>> Oh, yeah.

He doesn't dare talk trash to his mama.

>> I was probably the luckiest exchange student ever to get such a great host family.

I have a great host brother, so because of that we started a business.

>> The reason why strings wear out is because every time you hit the ball the strings get slightly weaker, and eventually they break on contact.

Then they need restringing.

We were kind of tired of paying, you know, 30-plus dollars to get our racquets strung, and we decided we'd just invest in a stringer so we could do it ourselves.

>> This is the stringer we bought off Craig's List.

>> And I actually posted an ad on Craig's List, so that's kind of how the whole business aspect of it got started.

First you've got to take the old strings off by cutting them.

You pull them out like this, and take them out of the holes.

This month we've got over 12 racquets so far.

>> We have a little chart for strings to keep the racquet.

Basically on a chart is just who strung it and when, what tension they wanted, what string, if they paid, yes or no.

If the same customer comes back again, we have a record of the strings and tension we used, so we can use it again, and he can always be happy.

>> We've been stringing racquets for around four months, and I have learned that business can be very frustrating at times, and it can really test you.

>> You definitely have to be responsible in your business.

Like right now we have a lot of racquets to do, and you just... you can't say, "I'm doing it tomorrow," because everybody wants to play tennis and they want their racquets back.

>> Very nice.

>> "Monday, ten dollars for ear piercing.

$20 for earrings.

Tuesday, $20 for piercings, $30 for earrings.

Wednesday, $30 for piercings, $40 for earrings.

Thursday, ran out of savings and space on ears."

>> Now we are in the natural habitat looking for the most cunning of creatures.

Oh, look!

There is one right there.

She looks like she's hunting for something.

She's found something.

Oh!

Now, most creatures would quit at this point, but Biz Kid is a tool user.

She's got a savings plan and a financial diary.

There's a goal.

What will she do now?

Oh, she's got it.

Obviously the Biz Kid is the king of the financial jungle.

>> Wait a minute.

Did you hide this?

>> Run!

>> Hey, Biz Kid.

Set a financial goal.

>> Save a little money every month.

>> I've got my goal right here.

>> Julie pays to offer complete... >> My initial goal was extremely personal.

It was basically to help myself grow my hair back.

When I first started my business, people weren't really receptive to it.

multimillion-dollar company, you know, a Fortune 500 empire.

My name is Jasmine, I'm 15 years old, and I own Eden Body Works.

When I was 13 years old, I got a perm put in my hair, and it made me lose the majority of my hair.

I was crying all the time.

I was like, "No, don't look at me.

I don't want to be seen."

So I decided no more chemicals.

So I started to look for all- natural products.

But I couldn't find any, so I decided with the help of my parents to make my own products, because I know I'm not the only person who lost their hair in a perm or is having problems with chemicals.

I started with... well, I borrowed some money from my parents, and we got basically a few ingredients, just tested, mixed and matched, looked online, looked in the different organic books that I had, to say when you put this with that, what beneficial properties it had.

Now my company's almost three years old, and we have a huge skew of products.

I would say that I have about six or seven employees working for me right now in a lot of different areas.

No, not six or seven.

I probably have about ten to 11 employees.

And this is one of my employees, Everett.

He's my production manager.

>> I'm 18, and it's kind of weird having a boss that's 15.

But I worked through it, and it's good.

>> What does a production manager do?

>> Well, as production manager I make sure everything is produced.

>> I think they get upset sometimes because the work is really demanding, but I think overall I'm a good boss, and I think they love me.

>> BOTH: Who's the boss?

>> I'm the boss.

When I first tried to get the products into different salons, because that was my main goal, the salons kept telling me no.

But this one salon called Changes, they were the one yes I needed to say, "You know, I think I can really do this."

How's everything selling?

>> Real good.

Well, Jasmine, I do know her actually very well.

She's been coming to the salon since she was 13.

And right now we carry the scalp balm, we carry the shampoo, the conditioner.

>> I love it.

>> When I first started, people were, you know, learning about my product, and it was spreading through word of mouth.

We weren't really doing any type of advertising.

And then I put up the Web site, and then people could find me online, and I got letters in the mail and calls from different agencies.

Newspapers from New York like the New York Times did a segment on me.

Then I was in Black Enterprise.

And then the big one, Oprah, came to me.

I come home from school on February 12, all the phones are ringing.

"You're on Oprah!

You're on Oprah right now.

Do you know that?"

I go onto a place where I get my orders off my Web site, and I'm sitting there and it goes, "100 orders, 200 orders, 500, 1,000, 2,000."

And I'm sitting there with tears streaming down my eyes, jumping up and down with my mom, screaming, "We're really doing this!

We're making it!

People are buying!

Oh, my goodness."

Jumping up and down.

"What are we going to do next?"

>> What?

>> It never hit us that we were going to have to fill all those orders.

Our big break actually is Wal-Mart.

And also more retailers are coming to us.

Mom has been able to quit her job and work for me full-time.

Definitely a successful company.

My first goal was to help myself.

My next goal was to help my friends and family.

And now I'm trying to go worldwide.

So I'm about halfway there in my mind.

>> And now it's time for another Biz Kids Biz Quiz.

If you said A, that's correct.

Congratulations.

You're thinking like a Biz Kid.

>> One of the best things you can do is put your money in a savings account.

That way over time you can let the interest work for you.

>> You bet.

I've even got a savings account all my own.

>> What?

Aren't you a little young for that?

>> No way.

In fact, it's better that way.

That's why I bet I can do better than you.

>> Okay, hot shot.

What do you mean?

>> I bet you and I could open a savings account with the same amount of money, make the same deposits over time, and when we're 21, I'd come out with more money than you.

>> Okay.

I'll take that bet.

And why do you think you'll win?

>> Well, you're six years older than me.

So if you took your money out when you were 21, I'd still be saving and getting interest for another six years until I'm 21.

In fact, my money might have almost doubled by then.

That's the benefit of starting young.

Time is on my side, and I can just let my money grow.

>> Well, suppose I don't take my money out when I'm 21?

I'm not too old to put time on my side, am I?

>> No, you're good, you're good.

>> Whew.

>> The monetary system of a nation is the lifeblood of it.

>> Fill in how much you want saved each payday.

>> Hey, Biz Kids.

You've got to know.

Listen up.

Don't blow your dough.

Keep it safe, take it slow.

And after all you'll have more dough.

A great way to achieve your financial goals is to stay on top of your money.

That's why today I'm moving $100 from my savings account into a CD, so I can make more money.

So what exactly does a CD stand >> It's called a certificate of deposit.

>> How much more money am I making if I transfer $100 from my savings to a CD?

>> Well, if you had a CD compared to your regular deposit account you're going to be making about five times as much money on that same investment.

>> Sounds good.

>> Okay, now, remember that for 12 months you have to keep that money with us in that same account.

>> Okay.

>> Or you have to pay a penalty.

>> So, I'd like to transfer $100 from my savings account to a certificate of deposit.

>> Well, let's get it done.

>> So I put my money in a certificate of deposit.

And you know what?

He was right.

I do earn a much higher interest rate than with a regular savings account.

There you go.

>> Thank you.

>> See?

It's as easy as that.

And without any hassle at all, I'm making five times more than I was in my savings account.

Now I'm on my way to money town.

Boo-ya.

>> Hi, I'm Becky Saunders, and I'm a Biz Kid.

neighbor asked me to watch their dog.

I just decided that I could turn it into a business.

There are my chief employees.

This is my grandma Pat and my older sister Tricia.

>> She's tough but fair.

>> But she doesn't provide dental.

>> This is one of my clients, Tess.

And she gets pretty upset when her mom goes away, and she won't eat out of her dish, so we have to hand-feed her.

One time a client asked me to watch their fish and their cat.

When they were away their cat ate their goldfish.

So the client told us to replace it.

When the family got home, the kids did notice that the fish was a different fish.

I learned that honesty was the best policy.

When you're honest with your client, it helps improve your business.

I don't have a set fee, so that's up to the owner.

But ahead of time they do know does go to two no-kill shelters in the state of Arizona.

>> Not only is Becky a Biz Kid, but a Biz Kid with heart.

>> It's important to give back to society so that you know that you're helping animals and people have a better life.

I use my computer to make my newsletter, and I use my newsletter to get new clients around my neighborhood.

I use Excel to show my net profit and my gross profit.

My gross profit is the total amount of profit that I make.

Then I subtract out my expenses and my employee costs, and then I'm left with my net profit, which is the amount of money that I really make.

Customer service is very important to my business.

This is my customer service relations form.

It helps me keep track of what exactly the owner would like me to do with their animal while they're gone.

We also ask them a couple of questions to see how they liked our service and what they'd like us to change the next time.

My business is all about doing what I love to do, so I'm always around animals, and I'm always having fun.

>> Here's the deal.

The way it works to save money every month is to spend less than you make.

In other words, it's like you need to consume less than you have, or eat less than is on the plate.

You could... say you should... well, like, comb less hair.

Perhaps comb very little hair as compared to what's actually on the top of your head.

>> To save money toward financial goals, you must spend less than you earn.

Whatever can you do to have more money left over?

Hmm.

Ah!

Perhaps one might reduce spending.

And the money left over, you can save or invest it.

Jolly good.

Start early, and let time help you reach your goals.

>> Yum, strawberries.

>> Here's when it's good to leave your money in an account that earns interest.

Let's say we put ten strawberries into an account that earns interest, such as this bowl.

>> This account earns an interest rate of 50% your total amount.

Now, that's a lot.

But we're doing it this way to make the math easier.

Now you have five more strawberries, which is half of ten.

>> Now you're earning interest on 15 strawberries, not just ten.

So when the next interest payment comes around, you get seven and one half strawberries.

Because seven and a half is half of 15.

>> Now you're earning interest on 22 and a half strawberries.

When your next interest payment comes, you'll get 11 and a quarter more strawberries, because that's half of 22 and a half.

>> Quarter.

>> So as they say, time is strawberries.

I mean, time is money.

Hey, you're biting into our profit.

>> So?

They're good.

Hold on a second.

You've got to try one of these.

They are amazing.

Want one?

>> If that demonstration didn't make an impression, try this.

>> Let's say this bottle of soda is your money.

>> And this bottle is your money with interest added.

>> Three, two, one, zero.

Ignition.

>> That was cool.

Now, that made an impression.

>> Did you see... >> And now, it's time for: >> I wish I had a bike.

>> A bike?

That's a great idea.

>> I wish I had a bike.

>> So this is the plan so far.

I've got this much in savings.

And if I can pick up three more lawns to mow... >> I wish I had a bike.

>> Yeah, it's ten dollars for the whole lawn.

But I can give you a discount if you book me for the whole summer.

You will?

Great.

>> I wish I had a bike.

>> Yes!

I earned some interest on my savings account.

>> I wish I had a bike.

I wish I had that bike.

>> You could if you were thinking like a Biz Kid!

>> So what is your financial goal?

Stop, stop.

Don't actually tell me.

I can't hear you through the TV But you do need to make a goal, and then you need to get there.

First, find out where you are financially.

That means you have to track your spending.

Next, keep more of your money.

Stick to the plan.

And invest the surplus.

Put all that into action, and you'll get there.

And you'll have achieved your goal.

You guys know I can read this, right?

>> Double your money in 12 years using the rule of 72.

So you take your interest rate, divide it into 72, and that tells you how many years it'll take to double your money.

So let's say you're getting six percent interest.

Divide six into 72, and it tells you in 12 years, you'll double your money.

>> I still don't get it.

>> Hey, wait.

You're not the shiniest penny in the piggybank, are you, audio boy?

Five plus seven... oh, what?

You're still here?

Well, did you learn anything, like goals?

You knew that?

Show's over... done.

>> Hey, do you know a successful business?

>> Maybe you're a Biz Kid.

Got some video?

We want to see it.

>> So check out bizkids.com to find out all the details, and maybe we'll see you on the show.

>> Yeah, like us.

>> What's so special about us?

>> We're on TV.

>> Does make us pretty special.

>> Yeah.

>> Just check out the Web site, because if you're a Biz Kid, we want to hear from you.

>> Production funding and educational outreach for Biz Kids is provided by a coalition of America's credit unions, where people are worth more than money.

A complete list of individual credit union funders is available at wxxi.org.

>> Every day, America's credit unions help members with their financial needs and with programs like Invest in America.

It's only fitting that credit unions support Biz Kids because financial education is what we do.

Learn more at lovemycreditunion.org.

Captioned by Media Access Group at WGBH access.wgbh.org