-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.

-Doc, you've got to help me-- it's an emergency.

-An emergency?

-Yeah.

You see, I invested the money from my bonus checks, but now I'm not making a fast enough return on my stocks.

I've got to go back in time and tell myself not to buy them.

-Artie, you know I can't let you do that.

-But Doc, I'm not making any money.

-Sorry, but no.

You could tear apart the time-space continuum.

-But Doc... -No!

Those are quality stocks that you bought with your windfall, Artie.

Oh sure, they may be flat right now, but over time they'll start climbing.

-Well, at the very least, can I go back and tell myself to be a Biz Kid?

-Sure, no problem.

♪ 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.

♪ -Have you ever had a windfall?

-What's a windfall?

-Well, it's when you suddenly come into some cash.

-How'd that happen?

-It can happen a lot of different ways.

Maybe you got a big check for graduation.

-Maybe dear old granny gave you a couple thousand from her estate.

-For me, a hundred dollars would be a windfall.

-What would you do with it?

-Throw a party.

-Yay!

-A small party.

-Aww.

-Okay, if you come into a windfall it's important not to blow the opportunity.

You have to invest that money.

-It's hard to know where to start when you get into some cash.

-There are so many different choices: -And all of these, over time, have a a different R.O.I.

-R.O.I.?

-It stands for return on investment.

When you invest you expect to make a profit or a return.

So what do you choose?

-The one that returns the most money, duh.

-But that could also have the most risk.

-Huh?

-Well, some investments like savings bonds are safe and conservative, but they don't return as much as risky investments.

-On the other hand, risky investments, like stocks, may return more, but you could end up losing it all.

So are you comfortable taking risks?

-I never take risks.

-Of course you do.

All kids do.

You take a risk when you jump in the pool or get on a trampoline.

-Dudes.

Got this new board with the cash my Uncle Jimbo left me.

It's time to partay.

-Hey, careful.

- Look out!

(crashing offscreen) -Sounds like a negative return on investment.

-Hey, Biz Kid$, I'm Candace Parker.

And I play for the WNBA's Los Angeles Sparks.

When I got to college I was just playing basketball, and really didn't have time to get a job.

When I got to the professionals I was extremely excited because, you know, I got my first check.

A windfall to me is getting a lump sum of money.

You know, whether you inherit it, whether you work for it, regardless.

My first windfall was when I got my first WNBA paycheck.

You have two options in a windfall.

You can, you know, blow your money.

Oh!

Whoa-ho!

I got the Benjamins.

Or you could save it and invest it and, you know, have a bright future.

I like to have fun, but when it comes to my money, I'm serious.

In the profession that I'm in there's a lot of things that can happen.

There's injuries.

You retire at a young age.

For my first windfall, I saved it.

At the beginning when I had my first windfall check, I feel like I was hesitant to take risks because I knew that I had a limited amount of resources to fall back on.

As I got more money, and was able to continue to build, you know, my finances, I felt more comfortable taking risks with that amount of money.

-Parker for two!

-Initially, I chose to stay safe with bonds.

You know, it was slow gain in interest over a long period of time.

As I got more money and felt more comfortable, I moved more to the stock market.

There's a huge amount of risk in the stock market that you don't know what's going to go up, what's going to go down.

A bond, you know when you put your money in a certain place that it's going to grow.

And at a very slow rate, but at a certain point when you take it out you know how much you're going to have.

The stock market isn't like that.

You might put money in and you might not get anything back out.

A basketball plan and an investment plan are very similar.

Sometimes you have to take risks and sometimes you have to play it slow and steady.

Hey Biz Kids, when you're investing, think through your game plan.

-Welcome to Fast Finance, home of the Fast Financial plan.

Can I take your order, please?

-I just got a big check from my grandma, and I want a number four basic financial plan combo, with a college tuition plan and a short term timeline.

-Do you want a low-risk or a high-risk tolerance with that?

-College is pretty important, so I'll go with low-risk.

-That's a basic financial plan combo, with a college tuition goal, a short term timeline, and a low-risk tolerance.

Will that be all for you?

-Also a mutual fund, please.

-You want fries with that?

-Yeah.

With extra ketchup.

-Well, how do you like that?

I'm rich.

-Congratulations on your financial windfall, Fast Buck.

What're you going to do with all that money?

-I don't know.

What do you think I should do with it?

-Well, you can invest in tax free municipal bonds.

-I've got it.

You want that moneys wheres you can find it.

Only one thing to do with proper newfound wealth, that's put it in a mason jar and bury it.

-I don't know, Fast Buck.

I don't think he knows what he's talkin' about.

-Oh, yes I do, you uppity horse.

So what's it going to be, Fast Buck?

-Hmm.

Well Lucky, you've always been right before.

But I reckon this time I'm going to take Gabby's advice.

-Hot dog!

Here, you can use my shovel.

-(neighs) -Hmm, I've gone loco.

I must've dug up half the dangburn field and I still can't find my money.

-Oh, that's too bad.

What a shame, Fast Buck.

You were rich.

-Well Fast Buck, how's my financial advice workin' out for you over there?

-Hmm... -Oh, that smarts.

-So you've got a windfall.

A lot of me.

Don't blow it-- invest it.

Put me in a financial institution and watch me grow.

And grow, and grow, and grow, and grow.

See how this works?

And grow, I'm growing.

Still growing, still growing.

You're just watching while I'm growing.

And growing, and growing, and growing.

- Okay, and now what?

- And now you're rich.

-So you've come into some unexpected money, a windfall.

-So now how are you going to invest it?

-Two big factors to consider are risk... -And time.

-Risk and time can have a big effect on your return on investment.

-Commonly referred to as R.O.I.

-You're young-- you have all the time in the world.

-That means you have time to invest a portion of your windfall into something with a higher risk.

-And possibly make a better return on that investment.

-And if that higher risk investment goes south, being young gives you time to earn back the loss.

-But what if you need that money in a year, two years, five years from now for a car or college?

-Well, since you don't have time to make up for the loss, think about putting your windfall into a safer investment, with less risk.

-Stocks have a higher risk.

-Bonds are less risky.

-A savings account, very little risk, but not very much R.O.I.

-So when deciding between different investment alternatives, think about how long you're prepared to leave the money invested and your comfort level with the risk.

-So the question is... -Can you handle risk, punk?

Well?

Can ya?

-I'm Layla.

I get a kick out of having a high R.O.I.

I started investing when I was around ten or 11 years old.

With just birthday money and Christmas money, just a small amount.

Now I'm 17, and I'm investing money that I've made off of jobs.

My first job was actually ballet dancing.

I did it for three summers, and it's something that I love to do, and I could also make money off of it, which was great.

So the money that I made I put into my portfolio and invested it.

With my windfall I wanted to definitely pay myself before I invested, and when I say pay myself I mean save.

So I put a lot of the money into my savings account, and the other half I invested in the stock market.

-But your one stock should not be 35% of all of your holdings, right?

-So with a stock you may have a growth rate of 15 percent over time, versus a savings account or a CD you may have interest rates of about one or two percent.

So although your money is safer over time, you don't have as much room for growth.

I like to invest in stocks more than CDs or bonds, because I can definitely see the growth, sometimes loss, directly.

-Divided by the cost.

- Which is 51%.

-So your Hershey is up 51% since you first bought it.

-51% is a great return.

-I think so.

I'm loving it.

-Yes.

How an investor decides where they want their money depends on how much time they have to invest, how money they have to invest, and how much risk they're wiling to take.

For me, I'm very willing to take risks, because I'm young, I have a lot of time ahead of me, and I also am willing to have the greater reward for the greater risk.

-So I know that this big blue section is really impressive to you-- you're really excited about all that Apple stock.

But for me, it's a red flag.

-It's important to diversify your portfolio because that decreases the risk.

-That's a huge chunk-- that's over 35% of your portfolio in one stock.

If Apple has a horrible quarter, or if Apple has a horrible Christmas season, and they don't sell all the iPads they want to sell, your investment could be at risk.

-That is kind of a dangerous chunk there.

-That's a big chunk, that's a huge risk.

It makes you vulnerable if something happens.

-Okay.

-Okay, let's do it.

-When it comes down to it, every investor wants to get the highest return on investment.

Position yourself to get the best R.O.I., Biz Kid.

-So how did you become all made out of tin?

-Well, I use to have a job as a woodsman, but then one day I decided that I wanted to make my money work for me.

So I invested everything I had in the Lollipop Guild.

-The Lollipop Guild?

-The Lollipop Guild.

Then one day the Wicked Witch came to Oz and the Lollipop Guild went under.

I lost everything I had.

My house, my arms and legs, everything.

All I had left were a few scraps of tin.

-Well, you should have diversified your investments.

That way you wouldn't have lost everything.

-Yes, I realize that know.

-I mean, I may not have a brain, but even I know you're not supposed to put all your money into one investment.

-Yes, I get it.

-I mean, how brainless do you have to be if you're going to do something as stupid as... -All right, all right, I get it!

-If you're lucky enough to get a windfall, remember it's udderly important to think about taxes and inflation so you don't get milked.

-You did the right thing with your windfall.

You invested it wisely, and now you're expecting a return on your investments.

But look.

Something's missing.

What's up?

-Mmm.

Taxes.

The return on your investment, the cake, has been taxed.

In this case about ten percent.

-The return on your investment can shrink due to any number of factors, like brokerage fees, inflation, or other hidden fees.

All kinds of stuff.

-But you can almost always count on taxes.

-So when anticipating how much your going to make on the return on your investments, make sure you account for taxes.

-Where're you going with that?

-Taxes, dude.

-Loopholes.

-I'm David, I'm all about R.O.I., and I'm a Biz Kid.

When I was eight years old I started selling candy around my neighborhood with my brother.

And I saved up some money so I bought a computer.

And after... when I bought the computer I read a couple of books on how to start an Internet business.

And so I started selling stuff online.

First year I actually did a lot better than I would have anticipated.

I grossed $50.000.

Five, zero.

$50,000, first year.

Bam.

Yeah, it was sort of my first... my first real business that was successful and that made some money for myself that I was able to invest and do something with that.

I put an initial investment in my Roth I.R.A.

and every year contribute to the investment.

A Roth I.R.A.

is an individual retirement account.

And it's special because you don't pay taxes on any capital gains you make from investing.

A Roth I.R.A.

is a type of retirement account that you would create with longer term goals in mind.

If you want a good return, think about taxes.

So let's say this apple is your investment.

The government, by taxing your investments, takes a bite out of your apple.

Mmm, that's a great apple.

The way a Roth I .R .A.

works is if you put money in the account that's already free and clear of taxes.

once you put money in that account, any capital gains from investing that you make you don't pay taxes on.

The great thing about a Roth I.R.A.

is you're minimizing the amount of taxes you're paying to the government, which allows you to keep more of your apple.

Longer term, a Roth I.R.A.

is a great way of investing for retirement.

More apple, more return on investment.

-As a dad I think it's important to teach my child the effect of taxes on investments, and to invest in a tax efficient manner.

-Adam, let's talk taxes.

-No!

-Capital gains?

-I want waffles!

-Dividends?

-No!

Adam don't care!

-Taxes on interest?

-No!

-Come on, it's really important.

-No!

-I have to admit that I'm disappointed that he doesn't seem to consider the effects, you know, of taxes and inflation.

So maybe I'll talk to his little brother instead.

Willy, let's talk about your marginal tax rate.

-Oh boy.

-Where's my coffee?

Brian!

-In a minute.

Whoa!

My Aunt Ethel left me a bodacious windfall!

-That's quite a bit of money-- what're you going to do with it?

-I don't know.

What should I do, Pegarino?

-Open an I.R.A.

And this I'd invest in good quality stocks.

-What about the rest?

-Remember that money I loaned you?

This is payback.

-No topic has inspired great music more than a financial windfall.

And one of the greatest singers of financial planning hits is platinum selling country artist Patsy Dime, who's put all your favorite financial planning hits on two CDs.

-♪ I picked you the same way I picked my investments.

♪ -Just listen to these chart bustin' hits.

-♪ If it don't save for college it ain't on my plan.

♪ -Nobody fills a financial plan ballad with emotion like Patsy Dime.

-♪ All my spendin' power is squashed down by inflation.

♪ -Call now to order this amazing two CD set.

But wait, there's more.

If you order before... -Help!

-What can I do for you, Ice Cream Man?

-It's the inheritance that I invested.

It's gone!

-Hmm.

It's no mystery.

Your investment couldn't keep up with inflation.

-You're right, Dog.

I guess I didn't think about inflation when I made my investment.

-And now your windfall has gone to the dogs.

-Do you remember your grandparents saying things like "When I was your age candy bars cost a nickel"?

-Even a small candy bar costs over a dollar these days.

That's because the cost of things, like candy bars, goes up over time because of inflation.

-That's right.

A nickel won't even buy you a tiny little candy bar anymore.

-Inflation can even have an effect on your investments.

-As inflation rises, every dollar will buy you a smaller percentage of a good.

-Like, if the inflation rate was two percent, a dollar pack of gum would cost a dollar and two cents after a year.

It affects your investments the exact same way.

You have to stay ahead of the rate of inflation.

-If the return on your investments can't keep up with the pace of inflation, you're not really making a profit.

You could be falling behind.

-Do the research.

Choose investments that outperform the rate of inflation.

-That way, when you cash them in years later you might end up with one of these.

-Instead of this.

-Hey can I have that?

-Sure, how about a dollar?

-Mmm, never mind.

Can I have your big one though?

-For a hundred bucks.

-What?

-Come into a windfall?

The temptation to spend that cash can be pretty powerful.

But when the money's gone, it's gone.

Sure, you can spend a little.

But put most of the money into something that pays you.

And remember to plan for taxes and inflation.

'Cause that's thinking like a Boss.

-My name is Nic Fornario, and I invented Tic Tac Tag.

It combines the classic games of tic-tac-toe and tag.

The way you play is each player wears a vest, and the object of the game is to get the other person out.

And to get the other person out you have to tag them on their vest by getting three lights to light up in a row.

Tic Tac Tag won first prize in Sports Authority Move It Challenge, and I won $10,000.

$10,000 is a lot of money, and there's a lot of things you can do with it.

You can invest in a vacation or a sports car.

But as a college student I need every cent I can get.

I invested my windfall wisely.

After I won the money, I took $9,000 and put it into a savings account, because I need to have access to that money for college, books, and classes.

Then I took a thousand and invested it into the stock market.

Investing in the stock market is riskier than putting it into a savings account because the stock market is very unpredictable.

You don't know whether stocks are going to climb or whether they're going to fail.

In a savings account you know that your money's going to be there and it's going to be safe.

I picked Walt Disney Company and Starbucks because they're companies that I use regularly.

I figured $1,000 would be enough to invest in stocks that I want.

It's a small enough amount where if I lost any money it wouldn't really impact my windfall.

I know Starbucks and Walt Disney Company are less risky because I've done a lot of research on how much their stock was worth in the past, when it's climbed, when it's gone down.

It's important to consider risk because the stock market is very unpredictable.

You really have to do your research and know the stocks that you're investing in so you don't lose your money.

Investing is a game, but you've got to consider time and risk if you want to win.

-I won!

-Whoo!

-After last season's record catch, the crew has reaped a substantial windfall.

But now they face treacherous financial waters as their boat tries to navigate a deadly storm of recession.

-Captain, I don't know if the boat can make it through the storm.

-It'll hold, Greenhorn.

It'll hold.

-We're taking on water and our stocks are down two percent.

We need a bigger boat.

-We don't need a bigger boat.

We need to stick to our plan.

-What plan?

-Our financial plan, Greenhorn.

My financial advisor is helping me come up with a sound fiscal plan, balancing out long term investments for retirement with short term income for things I need now.

-Well that's some pretty smart thinking, Captain.

No wonder you're the captain, Captain.

-Thanks Greenhorn.

-I still think we need a bigger boat.

-Hey what's up, bud?

-Oh, hey.

Going fishing, want to come?

-Yeah!

Well, one second.

Market just opened and I want to change some investments.

It'll only take a second.

-Wait, what are you changing?

What?

-Well, it's part of my personal financial plan.

I got some money a few years ago that I invested, and I have to keep evaluating my investments, and sometimes I have to make some changes.

-This isn't another fish story, is it?

-Well it actually is kind of like fishing.

Sometimes they're biting on this, and sometimes this one does the trick.

-Okay, well how do you tell if your investments are biting?

-Well you have to compare them to an index, like the S&P 500.

Now, if the returns on your investment aren't keeping up then you need to reevaluate.

Maybe you need to go to a different part of the river.

But the secret is& ...always keep your hook in the water.

-Okay, about that-- let's go.

-Let's go fishing!

-Whoa!

Guys!

-Mr. Bear, good to see you.

-Hi there, Betty.

-So, I understand you want to make some changes to your investment package.

-Yes, I need to make a change to my personal financial plan.

-Oh?

-Because I'm going away for a long time.

-Oh?

-Mm-hmm.

Hibernating for the winter.

I do it every year.

-Oh, of course.

-But this year my uncle Grizz left me with a big inheritance, and I want to be smart with it.

Which is why I came to you in the first place.

Anyway, one thing I remember my Uncle said about investing is if your financial plan or goals change, your investments might need a change too.

-Yes, that is true.

-Right, well, I'm thinking I'm not going to be following my investments like I usually do and I want to get a good return on my windfall.

So the smart thing to do would be -(both) Avoid short term stock bundles and invest in long term stock bundles.

-Oh, my goodness, Betty!

You read my mind!

-What's that?

I could bear-ly hear ya!

(laughing) (uncomfortable silence) -Here's your two mutual fund pizzas, guys.

-Thanks.

- I'm Brandon.

-And I'm Jordan.

-(both) And we chose a mutual fund as our first investment.

-Well, me and Jordan made a windfall from selling toys and games by just gathering old toys and games that we found around the house.

And we just started selling around the school.

And everyone loved it because of the popularity of the toys and games.

And also because of the cheap costs.

-Well, we had been doing a lot of online research about different types of investments, like stocks and bonds and mutual funds, and we found out that mutual funds were probably the best for us at a young age.

-A mutual fund is made up of several different companies.

Let's pretend this pizza is our mutual fund.

-And each slice represents the companies in the mutual fund.

Such as Google, Nike, or Amazon.

-And since there are so many companies, if the market takes a bite out of one it won't be too bad.

-One of the main advantages of investing in a mutual fund is that the risk is diversified because there's multiple companies in the fund.

So if one company doesn't do too well, you still have a lot of other companies that can increase your return.

-Another necessity in business is managing your business.

-We created these CDs... -...so other kids can make the right decisions with their windfall.

-The CD series Making Money for Teens is two CDs about stocks and investing.

And we teach different topics such as diversification and option trading.

-It's important for kids to choose to invest at a young age because it gives them so much more time to learn about all the investment techniques and choices that they can make.

And it also gives them time to build up their income and see what the stock will do in the long term.

-Oh my goodness.

-Whoa.

Amazon has been going up these past few days as well.

-Get a taste for investing with a mutual fund, Biz Kid.

-I see you've collected all the taxes from the peasants, your highness.

-Yeah, whoo-woo!

Truly, truly it is good to be King.

-Well, what if I told you you could take all that money and double it?

-What is this, Jester?

Some sort of wizardry?

-Ha!

Hardly, Your Highness.

It is called a high-risk investment.

-Yes, yes.

Go on.

-Well, my Uncle's cousin's sister-in-law's niece has insider information on a new stock that can't miss.

-Oh, really?

-Yes!

It is a little company that makes invisible clothes.

-Invisible clothes?

-Oh, they're all the rage in France, Your Kingship.

You really can't lose with this one.

-And you say you'd double my money, yes yes?

And that's guaranteed?

-Well, nothing in the stock market is guaranteed, Your Wonderfulness.

But, the higher the risk, the higher the reward.

All right, all right.

Let's do this.

-Oh, double my money, eh, Jester?

-Now I did say it was not guaranteed.

-Where's my money?

-So you got yourself a windfall.

-Maybe it was a gift.

-Maybe it was a bonus from work.

-Maybe you scored from a stock tip.

-Maybe you worked for it, like me.

-Be careful.

The temptation will be to blow it.

But the smart thing to do is invest it.

-The question is, where?

Where to invest your windfall?

-Keep an eye on it.

Check on your investments regularly and make changes if you're not happy with the returns on investment.

A lot of things can affect your return, like fees or inflation.

-So keep an eye on your investments and get busy.

-Looks like you finally got a positive return on your investments.

-Woah, another windfall!

-Hope this one turns out better than the last one!

-♪ I'm savin' up for college so I can't go dancin' ♪ But I tell you what we can go fishin'.

♪ -Continue to invest, and over time, you should see an impressive R.O.I.

-So you've got yourself a windfall.

-Hope this one turns out better than the last one!

-That was his windfall.

-$1,000.

-Move.

-Hey!

-Windfall.

A lot of me.

Don't blow it.

Invest it.

Put me in a financial institution and watch me grow.

Besides, I know people there.

I used to be roommates with Jackson.

So it's, like, better for you, better for me.

It's win-win.

-Are you a kid that runs a successful business?

-If so, then go to bizkids.com.

-We want to hear all about it.

Like, are you hiring?

-Wait, are you looking for a job?

-No, just go to bizkids.com and you could be on the show.

-That's bizkids.com.

What?

-Nothing.

-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.