>> 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.

>> It's time for America's fastest growing game show!

>> Wheel of Misfortune!

>> Our contestant today is Mr. David Jenkins!

Dave here is an employee with the Extreme Boards and Sports Shop.

Seems like you've done your share of spinning already, haven’t you, Dave?

>> Uh... >> Great!

Well let's take a look at some of our categories: Let's see what kind of financial misfortune Dave can land himself into when we spin the... >> Wheel of Misfortune!

>> (yelling) >> ♪♪ 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 they 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!

♪♪ >> There's an old saying, "A fool and his money are soon parted."

>> Uh... how about fool and her money are soon parted?

>> Well, I'm actually talking about financial misfortune.

>> What does that have to do with being a fool?

Financial misfortune can hit anybody, even a financial genius.

>> Exactly, but only the fool is unprepared for it.

Financial misfortune can hit in so many ways.

>> What happens if you lose your job?

>> What happens if you don't have a goal?

>> What happens if you can't control your spending?

>> Or you can’t stop gambling?

>> What happens if a disaster hits your family?

>> Disaster ain't going to hit my family.

>> Fool!

>> Welcome to Footraffik!

>> We offer all of our inventory on consignment.

Rather than purchasing the inventory, we solicit consigners to sell their shoes here, and we charge a percentage.

Initially, we had to raise about $40,000 to open the doors.

We didn't want to go to investors.

Our issue was with the whole quality control aspect.

We wanted to make sure that we were in complete control of our branding.

>> Sometimes we even like to have our own little slogans: "Sole Fresh, Soul Clean"; "What's Luck Got to Do With It?

"; "Talk is Cheap and So Are Your Sneakers".

>> We began to adopt this mindset that everything had to be quality.

>> From granite floorings, vinyl printing, the best painter.

The wall behind me is actually a Tiffany bluewhich is very hard to find.

>> Here's the "Traffik & Co." wall, and it is inspired by a sneaker called "Tiffany SB Dunk."

The value of the sneaker is $600-$700.

>> I was under the impression that the store would soon realize significant revenues.

So why not spend the money now?

>> We settled for nothing but the best.

We always made it a point to have it aesthetically pleasing, because we wanted to make it comfortable enough for sneakerheads to come here and have a conversation.

>> A sneakerhead is one who's willing to do anything that it takes of obtaining sneakers.

We were spending money that we didn't have.

I dipped into my savings.

>> Credit cards.

Took out loans under my own name.

>> Just gradually descend as... you know, our finances were running out.

As far as a security system goes, we somewhat waited too long.

>> We were definitely prioritizing other things over security.

>> It was a very, very reckless and unthoughtful move for us not to get one.

Actually, by the time we got around to doing one, it was broken into and we were robbed for a good amount of money.

And that's something that shouldn't ever have happened.

>> I'd say we lost around $12,000-$13,000 worth of inventory.

It wasn't only us who were affected by the robbery, but all of the people who we were consigning for.

>> Some of the sneakers were some of my friends', personal friends, and I told them their sneakers would be safe.

>> We were worried about how to bounce back from it.

Giving up was something that We didn't want to go to them, you know, without a plan of action.

>> We kind of made an understanding-- let's not talk about the robbery.

Let's talk more about how we're going to raise that money.

So what happened was we started creating events and coming up with payment plans, ensuring that we were doing our best.

>> Our biggest thing was we wanted to encourage them that we were working diligently to get them their money back.

It's all about maintaining their trust.

>> Never give up.

Our motto to any Biz Kids out there is to never give up.

We actually have a statement, and the mission statement here at Traffik-- "Keep it moving in the face of adversities in life."

>> Hey Biz Kids, prioritize your spending!

>> These dogs learned the hard way.

Excessive or frivolous spending is the number one reason for financial misfortune.

Sometimes it's fun, but many times you end up with stuff you don't need, and no money when you really need it.

>> Oh, look at where the Wheel of Misfortune has landed-- excessive spending!

>> I don’t feel so good.

>> No, not with all that frivolous spending on things you don't need, not keeping an eye on your budget, just spend, spend, spend.

But you know what excessive spending leads to?

Excessive spinning!

>> Ah!

>> You’re so sparkly.

>> Yes, my wealth tends to sparkle in the daylight.

>> I like sparkly stuff.

Look at my purse.

It's sparkly, too.

It cost about a thousand bucks, but isn't it sparkly?

Hey, what do you think costs more, a Myphone or a Cashberry?

>> I wouldn't know.

Which one can you afford?

>> Neither, but I think I'll buy both anyways.

That's what a credit card is for, right?

>> Oh, Stella, your reckless spending habits are leading to financial disaster and making me weak and ill.

If you don't make a financial plan, then we can't be >> No!

I want to be with you, Nedward.

I just don't want to make a financial plan.

>> ♪♪ She's Biz Witch ♪ the nastiest witch in town She's Biz Witch ♪ and let me tell ya she’s a... ♪♪ >> My secret recipe!

I've done it this time!

(cackling) Ah-ha!

Two children, ready to fall victim to my ingenious secret plan!

I'll see to it that they spend all of their money and live the rest of their lives in crushing, soul-destroying debt!

Hey kids!

See somethin’ in there you like?

>> You bet!

There's about a hundred things in there I'd just love to buy!

But I can't afford any of them.

>> Can't afford them?

Well, what’s stopping you?

>> Not in the budget.

I have a long-term financial plan that I want to stick to.

>> Now, don't let a little thing like a budget stop you!

You deserve anything you want!

Spend now!

Spend your money on whatever you want.

>> Yeah, well, if we blow our cash now, we'll have nothing for emergencies and we'll fall into financial misfortune.

You know, I'm all about short, medium and long-term goals.

>> Then you get a credit card!

Why, when I was your age, I'd already maxed out about 20 credit cards!

>> Yeah, figures.

And from the looks of that shabby suit, you're still probably paying off all those cards.

>> Yeah, we don't want to be like you, loser!

>> Ah, foiled again by those blasted Biz Kids!

Oh, if only I'd saved my money!

Oh, if only I'd... wish I... ohhh... budgeted, planned... ohh... >> When you spend more than you make, you’re in debt.

>> When you live on credit cards, you’re in debt.

>> Once you fall into debt it's really hard to get out, and can lead to financial misfortune.

>> The best way to stay out of debt is to not get into it in the first place.

>> In other words, control yourself.

>> Make yourself a financial plan.

>> You’ve got to make a plan.

>> And stick to your plan.

>> Don’t let debt stick to you.

>> Ow!

Debt hurts!

>> Pay with cash now or you'll pay later.

I'm Aileen, and I have $9,000 in credit card debt.

I have a lot of animals.

I love animals.

Four dogs, three cats, six rats, and I have two turtles.

When I was 18 years old I got my first credit card.

I started spending on clothes and going out with friends.

The most expensive thing I bought was my laptop, and that was about $2,000.

It's extremely hard to pay off credit cards when you're in debt.

I had no idea that I would ever be carrying this amount of debt for this long.

My first credit card was on my parents' account.

They gave me $100 a month for gas and they gave me the credit card also for emergencies.

I got a job making a really good amount of money, and when that job was over with, I just kept spending.

For the first couple of years, I just paid the minimum, and I didn't pay off the whole card.

I actually moved out on my own and got my own apartment, but because of the credit card debt I eventually had to move back home.

I want to study business at a university, and because of my credit card debt, it's going to be really hard for me to get the student loans that I need.

I can't go out with my friends and I have to live at home because of my credit card debt.

On this credit card is $2,400.

On this credit card is $4,900.

And on this credit card is $1,800.

So the total is $9,100.

Two thirds is going to interest, and only one third of my payments are going towards the actual balance.

Over the past five years, I have paid about $10,000 in interest.

Going out with friends and buying clothes and things that are not completely necessary are definietly not worth getting into debt.

Right now I have a business making and selling various pet products online.

I've made pet beds for them and I've just kind of started making them to sell, and the business kind of took off from there.

I have a lot of garage sales.

I usually have a couple a year.

I usually end up selling things that I actually bought with my credit card.

Pretty much every penny of that goes to my credit card debt and my parents.

My other business is just starting up.

It's actually a coupon website, showing people different ways to use coupons in order to get stuff for really cheap.

I want to go from misfortune to Miss Fortune.

Learn from me-- the best way to handle credit card debt is to do this.

Got it?

>> You'd be surprised at some of the financial mistakes that even kids can make that come back to haunt them.

>> Yeah, like not paying attention to debt or credit.

>> Kind of like library books.

>> I don't really understand what library books have to do with people who don't pay attention to debt and credit and fall into financial misfortune.

>> It's your name on the library card-- not your parent's name, not your brother's name, not your dog's name.

It's your name.

And that means you're responsible.

>> So?

>> If you don't return the books on time, there's a fine, and the library will send you a notice.

Then another one.

If you ignore it and let it sit around for a couple weeks, the fine doubles.

If you continue to ignore it, well, watch out.

>> I actually read about that.

Most major libraries hire collection agencies to go after people who owe them books.

>> And once your name ends up on the list of a collection agency, it could end up on a permanent record, and that could affect your credit score if you don’t pay.

>> You can start harming your credit score while you're still a kid.

>> You go to jail!

Go directly to jail!

Do not pass go.

Do not collect $200!

Do not... >> Austin, Austin!

You're scaring them.

Stop.

>> Oh, okay.

All I'm trying to say is that you'll probably wind up paying something similar to get out of debt.

We're talking about potential financial misfortunes, and they don’t have to happen.

>> You have to have a system that keeps track of where your money is and what your obligations are, like library books or paying your brother back, or whatever.

>> That's right.

So just pay up and it goes away.

Boom, done.

>> Boom.

>> Done!

>> Shoot, I wish I'd have boom, done.

>> You mean didn’t boom, done?

>> Didn’t boom, done.

>> Boom!

Done!

>> Boom.

>> Done!

>> Boom!

>> I think I'm going to be sick.

>> Well, yes!

We all get sick sooner or later, but I guess you thought that day would never come, because you have no insurance!

Well, that is quite the misfortune, isn't it, now?

But we have something that will make you feel just fine-- another spin!

>> (yelling) >> So girls want rock star parties, spa parties.

We can do their nails and makeup.

Some boys like pirates.

Smile Entertainment is the finest children's birthday party coordinators in Chicago.

I do about four birthday parties a month with three Smile-certified employees.

I can say we're very successful.

I'm a successful entrepreneur now.

I've been in business for over two years, but in the beginning, there was struggles.

When I first started the business, I was 16 years old.

We was on a bus.

Things started getting hectic.

The bus started taking too long.

We'd lose about two hours in transportation alone.

So then we found out that we needed a car, and then we didn't have money for a car.

I did bake sales, people donated to me to get a car because they saw how hard I was working.

I got a job at a sandwich place, and I worked part time, and I put a percentage of my check into my business for the car.

I raised $4,800.

I saw this red van.

It was exactly what I wanted.

I fell in love with it.

So I had to get it.

Car insurance would have cost me a total of $160, and I just could not afford it, so I didn't get car insurance.

>> I knew Ariell didn't have insurance.

I didn't really think of it as a big deal until, of course, we got in trouble.

>> It was a Friday night and I was running a little bit behind schedule.

In my head, I thought I stopped at the stop sign.

I looked behind me and the police was right there.

He was like "Young lady, you ran a stop sign."

I gave him my license, and I told him I didn't have no car insurance.

So he told me he was going to give me two tickets and and I'm going to have to go to court.

>> And I remember I was like, "What am I going to tell my mom?"

You know, she's going to say, "Why are you in court?"

>> The police told me if I would have had car insurance, he would have let me go with a warning for the stop sign, but because I didn't he had to teach me a lesson.

I was charged $75 for running a stop sign, and then I had to get car insurance the next day, or I was going to get another ticket.

I was in a new business, and it was really hard for me to pay insurance and pay the fines for the ticket.

If you drive without car insurance, you're bound to get into trouble.

Hey, Biz Kid, if you buy a car, buy car insurance now!

>> One of the ways you can get hit with financial misfortune is to not look to the future, your own future, and set goals.

>> Why?

>> Well, pretty much everyone wants your money.

>> They want to beg, borrow or steal it, right?

>> I guess.

>> If you don't have a goal, it can be so tempting to spend your money.

>> So having a goal makes it easier for me to say no to the temptation to spend.

>> Good job, Austin.

>> Plus it's a lot easier to save your money when you know exactly what you’re saving for.

>> So set short, medium, and long-term goals.

>> A short term goal is something you can accomplish in a matter of months.

>> Maybe you're saving for a new camera, a skateboard, clothes, whatever.

>> A medium goal may be something that takes a little longer.

>> Like maybe saving for a car.

>> So a long term goal might be like saving up to buy Kansas or something.

>> Kansas?

No.

More like college, or a house, or maybe to start a business.

>> No, I like Kansas.

>> Of course, your goals will change as you get older, but for right now the first rule is to be realistic.

>> Figure out what you can honestly save.

>> How much of your income or allowance can you really set aside for your goals?

>> ...of buying Kansas.

>> The key to successfully reaching your goals is to just stick with it.

>> And if financial misfortune hits you’ll be prepared.

>> Well, Dorothy’s from Kansas.

>> Excessive spending?

No budget?

Catch all the action on Unsolved Misfortunes, Tuesday at 8:00.

>> Hi!

I'm Capitalist Peg and Speak to me!

What do you want?

>> Hey, CP.

I was, uh, wondering if I could have an advance on my next paycheck.

I've run into a little financial misfortune.

>> Brian!

Financial misfortune?

>> Yeah, I spent all my cash on new clothes, but I wrecked my car and I need money to get it out of the impound yard!

>> Brian, you need to save your money.

>> Why?

>> For emergencies like this!

So you won't fall into financial misfortune.

>> Oh, look at that-- you never made a budget.

That means you could never see where your money was going.

Without a budget, you couldn't set your own goals.

And you know where that sends you-- right around in circles!

>> (yelling) >> This is the story of KA$H, a wildly successful hair band from the '70s, with hits like "Look what the Cash Dragged in", "Money to Burn", and their all-time greatest hit "Welcome to My Wallet."

>> Greatest rock tour in the history of rock!

>> Dean, Saul, Phil and Spaceman were grossing millions.

Unfortunately, despite raking in the cash, the band was on the road to financial misfortune.

>> Hey, not to be the unpopular drummer, but, like, have you guys actually looked at the budget?

>> No, they never looked at the budget.

If they had they would have known they were $5 million in the red, including spending $170,000 on custom made guitar-shaped candy, $1.5 million on chest hair wax, and a half million dollars on Spandex.

>> I'm going to spend my money on an island nation!

>> Today, 30 years later, KA$H is forced to play low-rent venues and out-of-the-way casinos to pay back the debt they owe.

>> Because of our excessive spending, we're never going to get out of debt.

>> I should have looked at the budget.

>> Oh, shut up!

That's getting old.

>> Yeah, I'll tell you what's getting old-- you guys!

>> All except Spaceman.

Shocked by the poor money management of his bandmates, Spaceman made excellent investments, and today lives on a small island nation!

And Ka$h?

Well, they’re cashless!

>> All right, here we go.

All right, yeah!

C'mon, you ready to rock?

>> It's always good to save for a rainy day.

(beat-boxing) Not saving equals bad luck.

My name is Caleb.

I'm 18 years old.

When I was ten years old, I got bit by a dog, and I got a ton of money for it.

And when I turned 18, I blew it all.

(beat boxing) I got an annuity payment-- a lot of money.

I get $12,000 when I turn 18 in May, which I've already gotten.

I get another payment when I turn 21, 25, and 30.

And those all add up to about $140,000.

Some of the things I bought was this car, my drum set, and this snowboard, clothes, shoes, Mack Code tool set.

The rest of it I just blew.

Can't even tell you what I spent it on.

When I first got my money, I bought this car.

It's a '99 Honda Prelude.

It was one of my dream cars.

It's a sweet ride.

It's fast, it's nice.

It rides low.

modifying it as much as I could, spending as much money on it as I could.

Make it nice and cherry.

Maybe a week or two after I had the money, I realized I needed to give my mom some money.

>> Just a couple years ago I bought this house, when I was making really good money.

And my son received a big payment while I was laid off the month he received his money.

And the following month, I'm just about ready to lose my house.

My power's not on, I had to turn that back on.

The cable's off.

I mean instantly I have nothing because I had no savings.

And so I've had to borrow money >> It just ended up being, you know, about $4,000 that I had to pay.

It was tough learning that and knowing that we were going to lose the house.

If I had a better savings plan with all of my money, I probably would have been able to help my family out better.

Because I blew all my money in the beginning, I don't have enough money now to fix my car and get it running.

The thing I would do differently is definitely set up a separate savings account, like a safety net basically, that can catch me in case I do fall.

If I could tell everyone out there about saving their money and not blowing it, invest it or put it in a CD.

You know use the tools out there that are there to help you-- don't blow it.

Just don't do it.

Save your money.

It’s really important.

(beat-boxing) Watch Biz Kids and save.

>> Why does it have to be like this?

You're a centuries-old vampire with a monstrous portfolio.

Why can't I buy everything I want and still be with you?

saving up an emergency fund.

>> I do?

>> Yes.

What if you were attacked by one of my many vampire rivals, or a werewolf?

You'd need to pay countless hospital bills.

And although I would want to pay, I couldn't!

Hospitals don't like vampires.

All that blood, you know.

>> I didn’t know that.

>> Don't you see?

The risk is too great.

I can't continue to see you and put you in harm's way, knowing that you don't have an emergency fund or financial plan.

>> I'll try, Nedward.

I’ll try.

>> No.

Don't try.

Save!

>> Wish I boom, done.

>> (yelling) >> Just off the set of the film Yankee Pasha is blonde Mamie Van Doren wearing a cotton print travel suit, topped off by a handmade Italian... >> You know, sometimes when you watch television, everybody seems so rich.

They all have the newest, best, most expensive stuff.

>> And, of course, when you watch it, you want it.

>> Which brings us to one of the easiest ways to fall into financial misfortune-- excessive or frivolous spending.

>> Do your parents buy anything you want?

>> Do they pay for your cell phone bill?

>> Does your daddy let you use his credit card?

>> If you answered "yes" to any of those questions, you, my friend, are on the road to excessive spending.

>> Now, a lot of families will set themselves a budget for things like meals, or clothes or phones or entertainment.

This way they can curb excessive spending.

>> So try to plan a budget for your family, and then stick to it.

Remember, life is not like they show you on TV.

>> Actually, we're on television right now, aren't we?

So I think things could be a little nicer!

>> I agree.

Wardrobe!

>> Catering!

>> Food?

>> Thank you!

>> For what are these thanks?

wisdom of this planet, I've learned to see things more clearly.

I have avoided financial misfortune.

>> How?

>> I've learned not to spend foolishly, not to rack up debt or credit, or not have a savings plan!

>> You have learned well!

>> I can set goals and stick to them.

Now I have my heart's desire.

>> And what is that?

>> Today I have a car!

>> I'm Lonnie George Hodges and I own Lonnie’s Young Cuts.

This is a community barbershop.

My costumers are all my friends.

That connection is what drives people to come back to you because they feel comfortable with you.

You know what I'm saying?

You become a part of the family.

To open this business, it cost me $7,000.

I saved every cent.

People called me cheap all the time.

I'm not cheap, I'm conservative and economical.

You never know what's going to happen in business.

Two months after I opened my shop, unfortunately, I did get robbed.

They came in, they told everybody to get on the floor.

You're not really arguing with a person waving a gun at you.

The robbers took the money I had on me, my phone, my wallet.

They caught me on a good day.

In total, from the money on me and my equipment, I lost $3,100.

The money for my rent, the money for my utilities.

As an entrepreneur, when things happen of that nature, you don't have time to feel sorry for yourself.

Through it all, I've grown, I've learned, I plan for the future more often.

Saving for a rainy day fund is quintessential in an entrepreneur's everyday life.

Emergency fund is money for the "just-in-case."

This is the money that if my mirror breaks, if my door gets cracked, God forbid, I get robbed, I have to have the means to keep going.

You should have money for your utilities, your rent, your supplies.

I always keep six months to sustain me in business.

You never know when misfortune can happen, so always plan for the future.

Always have a backup plan.

Always have a plan A and a plan B, and even a C if you need it.

>> Hey Biz Kids, save for a rainy day.

>> Aw, nuts.

I don't need your advice!

I'm going home to watch Biz Kids!

Boom!

Done!

>> (yelling) >> Thanks so much for playing: >> Wheel of Misfortune!

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

Huh, let me tell you, sister, I can relate to excessive spending!

Back in the day, I didn't save, I didn't budget, but boy, could I spend!

We're talking excessively excessive spending-- new car, new clothes... >> So by now you probably understand the importance of being prepared in case financial misfortune hits you.

>> Ain’t going to hit me!

>> So you're not a frivolous spender?

>> Nope!

>> And you have an emergency fund?

>> Yep!

>> And you don't rack up too much debt?

>> Nope.

>> You're telling me you've never made any mistakes with your money?

>> Not... well, there was that one time.

>> Yeah, well that's what I thought.

>> You know I'm just fooling with you, right?

>> Wait, so you haven't made any mistakes?

>> Well, of course I have!

But where do you keep your money?

>> It’s in my w... >> Looks like you ran into a little financial misfortune of your own!

>> Austin!

My wallet!

>> Okay, okay, okay!

>> Guys?

Seriously.

Austin!

>> (rapping) Savingsman here with a story for you ...never saving a dime when they tried to retire they'd run out of time Working forever is Tom and Sue's fate So choose to save now before it's... >> Chick flick!

>> Awesome!

>> This is not funny!

Come on, guys!

Janitor?

I do not get paid enough for this.

>> Need some more bites of Biz?

>> Check out our Web site.

>> If you have your own business, we’d love to hear about it.

>> Plus, we have resources that can help you.

>> Just click on bizkids.com.

>> And let's get down to business.

>> Some Biz Kids business.

>> 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