>> 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.

>> Yikes, I'm nervous.

>> Double tall nonfat, triple tall... >> Short grande!

>> So, Miriam, I got some money from my job and from my birthday, and I'm thinking about saving up for a car.

>> Yeah?

How are you going to do that?

>> I'm going to put my money in a savings account.

I mean, what else would I do?

>> Well, actually there's a lot of different ways to go about it.

It's kind of like coffee.

You know, you can get, like, an Americano or a latte or a... >> Double Tall Caramel Latino.

>> Ooh, or one of those.

That looks delicious.

>> So saving money is like coffee?

>> Actually, investing is like coffee-- lots of variety.

And it all depends upon what your goals are and what your time frame is.

>> You come here often to think about saving money.

>> No, I come here for... >> Double tall nonfat double pump raspberry mocha with extra whipped cream and extra sprinkles.

>> The perfect beverage for a Biz Kid.

( slurping ) ( burping ) >> ♪ 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.

♪ >> What are you working on, Lauren?

>> Oh, it's a budget for this thing I want to do.

>> What is it?

>> Well, I want to make a movie, but actually it's turning out to be really expensive.

I don't know how I'm going to come up with all the money I need.

>> Okay, well, what's your plan so far?

>> So far?

Well, I'm just saving up money until I get enough.

>> Okay, so you have a savings account.

>> Yeah.

>> You know you can do a lot more, right?

>> Like what?

>> Well, you could take the money from your savings account and use it to open a CD, which earns a lot more interest.

>> A... >> No, no, no, a CD, it's a certificate of deposit.

>> Oh!

>> It's a special kind of savings account that earns more interest, but you have to leave your money in the bank for a longer amount of time.

>> Okay, that's great, because I need the time to get organized.

>> You could also do a money market account.

You're just giving more money and earning more interest.

>> Okay, that sounds good.

>> You could also do a bond.

Municipal bonds are like loans that promise to pay you interest.

>> Okay, that sounds even better.

>> Really, you just need to set up goals-- small, medium, and large goals.

Then you can work towards your final goal through small steps.

And once you're there... >> What?

>> It's lights, camera, Biz Kids-- Kid-zzz, Biz Kid-zzz.

>> Today we're talking about savings and investing.

And a good thing to do on this subject matter is to invest the money that you save.

And some of the best ways to do that is to invest in stocks or bonds or mutual funds or CDs.

And remember what the Rolling Stones once said: time is on your side.

>> Oh, Michelle, I don't want to.

>> Oh, Mike, be a smart investor and get in there and open a savings account.

>> Do you mean a smart Biz Kid?

>> Hi, my name is Jeri Lee.

I'm an inventor, I'm an investor, and I'm a Biz Kid.

My home was filled with creativity, and I discovered that you can be creative financially too.

This is my mom and my chief financial advisor.

>> I suggested Jeri Lee put her money in more than one place, because then if one thing doesn't work out very well, she still has more money in other places.

And she's the only kid I know with four investment accounts.

>> I invent games.

This is Family Balance Quest, and it's about balancing your life.

This is Biz, and it's about business.

>> My little sister is well aware that I love games, especially word games.

She created Speed Spell for me, my favorite game in the whole wide world.

We knew it was time to market it.

>> I'm winning.

>> No, you're not.

>> I sold the game to Gamescape.

>> Hi, I'm Darren.

I'm the owner of Gamescape North in San Rafael, California.

She makes personal deliveries for us, which is great, just like, you know, the old days.

>> I buy all my games from Jeri Lee.

>> Can you spell "entrepreneur"?

E-n-t-r-e-p-r-e-n-e-u-r. Is that right?

>> Jeri Lee, at a much younger age than I ever possibly knew to do this stuff, has invested her money already and is playing with it in such a way that she's getting much higher returns than would ever be expected of someone at her age.

>> Investing is kind of like my game.

You try and pick the right cards and put them down in the right spots, and if you put your money down in the right spots, you win.

Right back here, this is my money management system.

This is my financial freedom account, which I get interest for from the bank.

This is my expenses for things like Christmas presents.

This is my "give" for giving to charities and things, like, at church.

This is my education account, which is for things like college.

And this is my LTSS, long term saving to spend, for saving up for things like computers or bikes.

>> By diversifying, I am protecting my financial investment in me.

Investing is like a team sport.

All you've got to do is find the right team to help you play the game.

>> I thought it would be great for her to invest in the foreign exchange market, and even though it felt like we were going out on a limb with that, we found a way to reduce the risks, and it's turning out really, really great.

>> When I'm buying foreign currencies, I'm going to buy it low, then the value goes up, and then I can sell it for more.

I don't know how much more money I have since when I started, but it seems like a whole lot more.

I'm building bridges to financial freedom so I can do the things I want to do.

Here I am, crossing my bridge.

It's a metaphor.

I'm investing in me.

That's something a Biz Kid would do.

Biz Kids.

>> Tired of not having any money left for savings after you're done paying for other stuff?

>> Oh, my gosh, that is so frustrating.

>> Well, see, Austin, you're paying yourself last.

>> Paying myself last?

>> Yeah, I bet you buy a lot of this stuff with your money: CDs, movies, fast food, whatever.

Then you see what you have left over, and then you decide if you're going to put any of it in savings.

>> So you're suggesting I pay myself first?

>> Exactly.

When you get money, I think you should automatically take some out and put it into savings, and then use the rest to buy whatever you have to buy.

>> Okay, so I should treat savings like I'm paying my bills.

>> Uh, well kind of.

I like to think of it as paying myself first, which means I'm giving money to me before I give it to anyone else.

>> All right, Alex.

I like the sound of that, paying myself first.

Thank you, man.

>> Hey, no problem.

Get a little bit in the bank there.

>> Yeah, yeah, yeah.

>> Get some interest maybe.

>> Okay.

>> Make some money.

>> How many times do I have to tell you, boy, to pay yourself first?

>> Okay.

>> I got to go.

I'm going to work.

Bye.

My name is Bella.

This is where I work.

I help make the coffee and do the cash register, and I help sell chocolates.

I usually get paid $5 an hour.

This time card tracks my hours so my mommy knows how much to pay me.

Can I please have my paycheck?

This is my paycheck.

I'm going to go invest it.

Bye, mommy.

>> Bye, Annabella.

Have a good day.

>> Okay.

I got ten bucks from the bank today, so I like to pay myself first.

Piggy bank means that you pay yourself first.

This one's my retirement money, because it's so heavy.

Piggy.

Retirement, college, fun money.

Fun money, fun money, and fun money.

Be smart, Biz Kid.

Pay yourself first.

Oink!

>> I tried to get you on the telephone, but I couldn't.

I just wanted to tell you that... >> ...I finally opened a savings account.

>> Work that compound interest, girl.

>> So have you reached your goal?

>> No!

I was saving all summer, but I still haven't gotten enough money yet.

But I was looking into these accounts that, like, get you some extra money or something.

>> You know it.

♪ It's called interest, baby!

♪ >> Who are you?

>> I'm the Savings Superstar, kid.

♪ If you want to save every night ♪ And grow interest every day ♪ You got to do it right savings, baby, yeah... ♪ >> Thank you, Savings Superstar.

>> Hey, if you invest your money right, then you're the real savings superstar.

>> Save-a-ave. Save-a-ave, save.

>> Save?

>> Right.

>> You're going to end up buying a loaded fund.

It's not worth it.

Indexing is the way to go.

Launch that Web site today.

Go with the index fund.

$2 million.

It has a .18% expense... Yeah, we'll launch the Web site today.

You're going to end up buying a loaded fund.

It's not worth it.

It's not worth it.

Hi, my name is Ramit Sethi, and I graduated from Stanford a few years ago.

After I graduated, I started a personal finance blog called "I Will Teach You To Be Rich."

It's about teaching young people like us how to manage our money: saving, banking, budgeting, and investing.

Investment!

Since I started it, the site has been featured in the Wall Street Journal, the Boston Globe, the New York Times, and I have about 150,000 monthly readers.

I also cofounded a company called PBwiki, which lets you create your own Wiki.

What you can do with PBwiki is create a Wiki as easily as making a peanut butter sandwich.

And we raised $2 million in venture capital financing.

Today, I'm going to help you navigate the twisty roads of personal finance.

And here's the best part: it's not even that hard.

>> Hey, Ramit!

I want to invest in stocks and mutual funds.

Problem is I don't know what they are!

>> Yeah, I'd like to know about those investments as well.

>> Ah!

>> Ooh, I'm feeling a little seasick.

>> Mutual Funds.

Stocks.

Mutual Funds.

Stocks.

Mutual Funds.

When you own a stock, you own part of a company.

You own a little piece of a company.

And if that company does well, you expect that your stock will do well, and you'll make some money.

The bad side, though, is that if that company doesn't do well, you might loose your money.

Now, when you own something called a mutual fund, you actually own pieces of a lot of different companies.

So even if one company doesn't do so well, you still own a lot of companies.

So one minor hit won't hurt you as much as if you owned just one company.

>> You can invest it or... >> I'm Capitalist Peg.

>> Hey, boss.

>> It's my assistant, Brian.

Brian, don't interrupt.

>> I'm sorry, but my stock and mutual fund investments have matured, and you're working for me now.

>> Hey, your financial advisor is here.

>> Yeah, she's going to teach me the power of compound interest.

>> Sweet, dude.

>> All this talk about saving money for a business idea is fine, but what if you're saying, "I'm just a kid.

I'm not starting a business.

This means nothing to me."

>> Well, it should.

And you want to know why?

Because of compound interest.

Say you save $50 a month for ten years.

That's $6,000.

But if you got about 9% compound interest on that investment, your interest alone would be $3,600.

That's more than a third of what you'd saved.

>> Cool, cool, but listen to this.

Let's say you saved that much for 20 years.

In 20 years, you'd have saved $12,000.

And the interest you would have earned would be $21,300.

That's almost twice what you saved.

>> All right, that's pretty cool, but say you saved $50 for 30 years.

What do you think the interest will be on that one?

Try $73,500-- for nothing, just saving your money and letting it sit there.

>> Dang.

>> Now, Mike and Michelle, you're both 25 years old.

And you understand the power of compound interest?

>> I do, ma'am.

>> When you decide to start investing or start your own company or start a... ( fog horn blowing ) The first thing to do is... ( fog horn blowing ) They're taunting us.

The first thing to do is start early.

It really makes a difference.

Let me tell you a story about two different people.

One of them is named Michelle.

She decided to start investing at age 25.

She put $100 per month away for ten years-- for ten years-- until she was 35 years old, and then she stopped.

Now somebody else, his name is Mike, he said, "I'm not going to invest today.

I'll do it tomorrow.

I'll do it tomorrow."

He started at age 35, and then he started putting $100 a month away for ten years.

Ten years Michelle, ten years Mike.

Ten years Michelle, ten years Mike.

Guess who has more money at the end?

>> I love the views here.

>> Michelle has more money.

Michelle has more money.

Why?

Why?

Because the power of compounding, because of time.

Her money grew and grew and grew on itself.

Grow and grow and grow because she started early, and that made all the difference.

Start early, it really makes a difference.

>> Better late than never, Mike.

>> This guy had invested... ( glass shattering ) >> You idiot.

>> All right, you two chowder heads.

You can take those masks off.

We pretty much know who you are by now.

All right, let's get to it.

What was the plan?

>> Well, we was going to drive the getaway car over to his... >> No, no, no, no.

I mean what was the plan for the money-- the money plan?

>> Well, I had my eyes on some 20-inch spinners.

>> Idiot, that'd make us even easier to spot.

>> I wasn't the one who wanted to stop and count the money, you... >> Hold it, hold it, okay?

Now, here's the problem.

You guys had no long-term plan.

I mean, no matter what you did with the money, it would just fly away, and then what would you do?

>> Another bank?

>> No, no, no, no, no.

You're looking at it all wrong.

See, you guys need to make your money work for you.

You ever heard of a certificate of deposit?

>> You know, I saw a big old sign about those in the bank.

>> Well, did you now?

Well, good.

And you know what?

It's a good idea too.

You put your money in a certificate of deposit, and it grows faster than a regular savings account would.

>> Now, wait, what's the catch?

>> Well, you're right.

There is a little catch.

You got to leave it in there for a while.

>> Nah.

>> Not going to be a problem for you two guys, where you're going.

>> Divest.

>> Invest.

No, no, invest.

Invest.

Invest.

>> Invest?

>> Right.

Inve... inve... invest.

>> You are my limited edition.

Yes, you are, you limited edition Squid Man.

Squid punch, yeah, ah!

Then he can, like, use his ink power.

>> Hey, Austin, whatcha doing?

>> Ah, just reviewing my investment portfolio.

>> Investment portfolio?

Looks like you just blew all your money on comic books again.

>> Invested all my money on comic books, thank you.

>> Invested?

Are you kidding?

>> No, no, no, these are limited edition comic books, all right?

So in a couple years, they're going to be worth lots of dollars.

>> Austin, sorry to spoil your fun, but these aren't going to make any money.

>> Ah, you're just jealous.

>> Jealous of your impressive Squid Man collection?

Seriously, those comic books are never going to be worth more than you originally paid.

In fact, they're probably going to go down in value.

>> Look, don't get suckered into buying something just because it says limited edition.

Seriously, Austin, how many of your friends have the exact same ones?

>> Well, almost all of them.

>> Exactly.

And the thing that makes a collectable valuable is its rarity or demand.

If all of your friends and who knows how many other people have those exact same comic books, who's going to pay a lot of money for it, even in a couple of years?

>> Well, you see, in a few years... >> There's going to be tons of them on the market, because millions of people like you bought them thinking it would be a good investment.

Look, collect what you love, collect comic books or baseball cards, but do it because it makes you happy, not because you think it'll be a good investment.

>> There are a lot of great investment opportunities out there for you.

>> If you use the idea of collectables as an excuse to blow all your money on comic books, then it's time to start spending smart.

>> Yeah, I guess you're right.

And I know just how to start: Squid Man action figures.

This is totally different.

All right, if I get two more, I'm going to have a full set.

Look, Squid Man autographed it himself-- solid brass, solid beautiful.

"I'm a limited edition."

Yes, you are.

Yes, you are, you limited edition Squid Man.

>> Hi, I'm Martina Butler, and I'm a Biz Kid.

This is my show, Emo Girl Talk.

Emo Girl Talk is my podcast.

I just talk about my life, and I play music.

I have my friends on.

And it's pretty easy and makes good money.

Emo is a genre of music.

It's emotionally charged rock.

>> I'm Martina Boa's dad, and I do a podcast called the Rock and Roll Geek Show.

>> He suggested I should do my own, so I gave it a shot.

Welcome to Emo Girl Talk.

I'm Martina.

>> Just kind of got the idea to make her own show and kind of took off from there.

>> Yeah, I got into it.

All you need to do to have your own podcast is have a microphone, software like Garage Band, and a good idea.

So I started Emo Girl Talk.

I play music.

I have my friends on.

Hey, guys, welcome back to Emo Girl Talk.

I'm here today with Mike Parize and Russell Olertons.

What do you guys have for us today?

>> ♪ Down on the grassy field we lay... ♪ >> I have listeners from all around the world.

I don't know, just teenagers who can relate to me.

So for this segment of Emo Girl Talk, I'm here at Ocean Beach to show you guys the fire pits.

They were built by... >> Excuse me.

>> Do you mind?

>> We're listening to Emo Girl Talk here.

>> Don't interrupt us.

>> I was the first teen podcaster to receive major sponsorship.

You just do whatever ads they want you to do and just basically say the company name, and it's pretty easy and makes good money.

The money I've saved up from my sponsorships and my podcast will definitely be put towards college, and that will help me pursue my dreams of TV hosting and dance.

One of the ways I save a good portion of my money is a CD account.

My mom told me about it.

It's locked so I can't access it.

Because, knowing me, I'm a big spender, I wanted a way to save a good portion of my money and not be able to access it so I actually save it.

It's locked.

I can unlock it after two years, but I don't want to, because it gains interest after a certain time.

It matures.

So I get more money, actually, if I keep it locked up for a longer amount of time.

So basically what I'm doing is paying myself first.

I take every paycheck that I get, and I put a certain amount towards my future.

And then I deal with other expenses, like clothes and food and stuff like that.

By protecting my finances, I'm protecting my dreams, and that makes me a Biz Kid.

>> They call me the King of Kaching, and I think a lot of people think I'm just a ( bleep ).

...how to invest it, all of that, because let me tell you something.

>> Last on All My Investments, Bruce reveals a shocking secret.

>> You did what?

>> I took our life savings, and I put it into a mutual fund.

>> But that's boring.

Kenneth would never do anything so boring.

>> Don't bring your Kenneth into this.

>> At least he was risky.

He was exciting.

>> I can give you the security he never could.

We're sticking with mutual funds.

>> Okay, everybody, here we go.

>> And now it's time for some subliminal messaging.

Are you ready?

Save, invest, save.

And now I'll try it slower.

Save.

Invest.

Thank you.

>> Look, Gretchen, my investments have gone through the roof.

Let's dig a party.

>> Dr. Drake makes a shocking announcement.

>> Your father's amnesia has finally cleared.

>> Daddy, is it true?

Do you remember me?

>> Yes, darling, I remember you.

>> Daddy, what did you do with the money?

>> Money?

Oh, it's coming back to me.

I went with Desmond to the bank and opened a CD.

>> Then it must have been Desmond that hit you over the head.

>> Good Lord.

That account must be worth a fortune by now.

>> Don't miss the next episode of All My Investments.

>> So what's a CD?

No, I'm not talking about this type of CD.

I'm talking about the kind of CD where you give your money to a bank or the government, and they hold it for you for about a year, and they'll give you your money plus a little bit of interest back.

If you put your money in a CD and let it sit there for a year, it's going to grow a little bit.

If you put your money in a CD and let it sit there for two years, it's going to grow a little bit more-- and if you let it sit there for five years, even more.

The longer you invest your money, the more money you'll have.

This is a low-risk investment.

>> Oh, Frankie, read me the stock page please.

>> Well, let's see here.

Your individual stocks have done really well and you're... and you're portfolio... >> Oh, I love it when he speaks investments.

>> ...your mutual funds is doing real keen.

Biscuit one in the third.

>> Oh, Frankie, gambling's not an invest... >> Greetings.

Squid man here with an important announcement.

Always invest in yourself.

Do the work.

Get the education.

Go the extra mile.

Because you are your most important investment.

I am, on the other hand, just a worthless collectable.

Oh, my back.

>> It is a risky business.

Rodeoing is always risky.

It's a huge investment in the sense if... all the money that you put out there on the line that you have to think about making back.

Definitely a good investment, but a risky one.

My name is Tanna Donary, and I'm a professional rodeo cowgirl.

I got into rodeo when I started riding when I was three.

My dad rodeoed, and he was a bulldogger.

I bought Bud by myself when I was eight years old, and that's this one.

I love him very much.

We are in Hartzel, Colorado, on a ranch that my husband's family owns, and this is where me and him have lived.

I think our biggest investment right now, I would say my rodeoing, and we invest money in our horses.

This is my horse Tex.

I bought him while I was in Texas.

You're such a good boy.

The way I like to do it is you invest in them when they're young.

You know, I buy a lot of two- and three-year-old horses that are just either broke or not all the way broke, and I finish breaking them.

I put... you know, you can put anywhere from 30 days on them to, you know, five years on them.

If you put five years on one, you can make a lot of money, 20,000, 25,000 on one.

I bought this horse for about 4,000, and I'm hoping to sell him for at least 12,000 or 15,000.

It depends on if you want to do fast, quick investments, or you could do long-term investments as well.

Bud is a huge investment.

I bought him knowing I was going to grow up on him and keep him.

So that was an investment that I made knowing that we were going to have to win money back, you know, for that investment.

I wasn't going to sell him.

The different ways I make my money are roping calves and running barrels.

I'll go get the calves out of the catch pin down there, and then we bring them up the alley, and Micky will load them in the chute, and then I nod my head, and Micky will open the gate, and then I'll chase him.

With rodeoing, you're never... you're never guaranteed.

You pay an entry fee.

You pay all your fuel, all your money to get there.

You might get there and draw a bad calf.

Hey!

You'll go three or four weeks and not win anything, and pretty soon you're thinking, "I've spent a lot of money, and I'm not making very much."

He's a huge horse.

He requires feed and hay and shoeing.

This is about x amount of dollars I spend a week, so this is what I'm investing, and this is what I need, you know, to make this operation work.

Hey!

Larry, go.

Hey!

All righty, are you guys ready?

I can't even tell you the thousands of dollars that this horse has made me.

We've won 18 or 19 different saddles, tons of buckles, money, tons of money.

I also won this belt buckle.

It's the year-end champion buckle.

Last year I won all-around saddle in New Mexico.

It's a trophy saddle.

That's what it is!

You want to loosen your cinch?

Bud is a huge investment.

He's... he's paid off.

Every dime I ever spent on him he's made three times over.

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

If you chose D, congratulations, you're thinking like a Biz Kid.

>> All right, Lizzie, that was good, but a little slower this time.

Austin, you're still missing your mark.

Try and nail that, okay?

And, Devon, that was perfect.

>> Thank you.

>> All right, are we ready to try this again?

Remember what I said.

>> Lauren, what are you guys doing?

>> Oh, hi!

I'm glad you're here.

I took your advice and put my money into savings bonds.

And now look.

I'm making my movie.

>> Congratulations.

So do you need any help?

>> Um, you want to do sound?

>> Sure.

>> All right, are we ready?

Camera rolling.

>> Ready!

>> Sound?

>> Sound.

>> Sound.

>> Sound.

>> Pie scene.

>> Quiet on the set.

>> Budget boy invests in a pie company, take 21.

>> All right, speed.

>> And action!

>> Cut!

Reset!

Back to one, everybody.

Back to one.

>> You got a pie on your face.

( laughter ) >> Austin, Austin.

Austin, turn around.

No, no, no, no, no.

You're going to step in it.

You're going to step in it.

You're going to step in it.

>> Fabulous.

I couldn't ask for better actors.

>> Thank you.

>> Thank you.

>> I think we should do it one more time.

Do it one more time.

One more time.

>> Okay, where was I?

There's tons of investments.

Real estate, I invest in that.

Soy beans-- there's tons.

Technology stocks.

>> Hey, do you know a successful business?

>> Maybe you're a Biz Kid.

If so, we want to hear about it.

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