>> 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.

>> Yes!

I finally got my license and I found the car of my dreams on the same day.

>> Nice, dude.

I got my license like, a year ago, and I'm still researching the car I want.

How did you buy this so fast?

>> Oh, I used my savings as a down payment and I took out a loan.

I just always knew I wanted a X-438 limited with the sweet exhaust pipe.

Check this out: ( engine revving ) ( tires screeching ) ( crashing ) >> What was that?

>> I don't know-- pothole?

>> ♪ 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.

♪ >> Ever notice that you need a license to drive a car but you don't need a license to buy one?

>> Yeah.

There's just so much to learn when it comes to buying your first car or any big purchase, for that matter.

>> And the best way to shop for an expensive purchase like that is to make sure it's BROWN.

>> When I think about buying a car, the first thing I think of is brown.

>> No, B-R-O-W-N.

It stands for what you need to remember when you make a big purchase.

"B" is for "Budget."

Know your budget before you do anything.

It's the best way to avoid financial trouble.

>> How about a chocolate brown?

>> "R" is for for "Research."

Research the make, model, year, accident history, safety rating, price, stuff like that.

>> Maybe an espresso brown.

>> "O" is for "Ownership."

You're going to be the owner of this car, so own it.

You're responsible for loans or any additional costs, so do what's best for you.

Don't be pressured by friends or salespeople, anybody.

>> I'm sort of feeling a retro 1970s brown.

>> "W" is for "Walk Away."

Understand the terms-- operate costs, interest rates, fees-- and if you can't afford it right now, don't feel embarrassed.

Just walk away.

>> Maybe a poopish brown.

I'd walk away too.

>> "N" is for "Negotiate."

It's all about the art of the deal, so have fun and negotiate the best deal you can.

>> Remember: "Budget," "Research," "Ownership," "Walk Away" if it isn't right, "Negotiate" if it is-- B-R-O-W-N. >> I'm Skylar.

>> I'm Colby.

>> And this is the Silver Aspen Ranch.

>> Yee-haw!

( horse whinnying ) >> I'm Colby Powell and I'm 16 years old.

My budget for a car was about $7,000 that I had to spend, and I made that money by working at the ranch.

This is a 2008 PT Cruiser.

It's not the coolest car out there, but it was affordable.

I just kept saving until I had enough.

I researched online to find it.

I paid for it with cash.

Originally, I was looking for a Ford F-150, and I did some researching and those were about double what I had, and I wanted to pay in full so I didn't have to make payments every month, and so I had to walk away from that and go with what was affordable.

I'm happy with this.

I negotiated a good price and got a good deal for it.

>> Hey, Biz Kid, this truck is a big investment.

Get it-- "hay?"

( laughter ) My name is Skylar and I'm 19 years old.

This is my Dodge Dakota Sport 2002.

I wanted to buy a truck because I have to haul so much stuff and I wanted something with a back.

I make my money by working for the ranch.

I had like, $5,000 saved up to put down and then we went to get a loan, and I've been paying it off ever since.

I send in a check every month for $200.

It should be totally mine in about six months.

Hey, Biz Kid, remember the word "BROWN"-- "Budget"... uh... ( horse whinnying ) >> "B" stands for "Budget."

>> How do you know you can afford anything if you don't know where your money is going?

>> Start with your income.

>> Easy for most of us.

>> Where does your money come from?

>> Make a list-- job, an allowance, dear old granny.

>> Make it real-- money that you're actually earning as opposed to what you hope is coming in.

>> Next, list all your expenses.

>> Movies.

>> Cell phone bill.

>> Gas for your car.

>> Now add the cost of the big purchase, and don't forget to include the cost of... >> Upkeep.

>> Maintenance.

>> Repairs.

>> And stuff like that.

>> How is all that going to affect your budget?

>> Will you still be making more than you spend?

>> Hey, look-- you can still afford a car, just maybe not a Cadillac.

>> Sir, if I'm making a big purchase, what should I think about?

>> Well, you should consider your budget.

>> Budget?

>> How much can you reasonably afford?

>> That's good.

>> And you should do your research.

Collect facts, read consumer magazines, and so on.

>> That's good.

>> And learn to negotiate for the best deal.

>> That's good.

>> Hmm, and now that I think of it, you might want to budget for a better suit.

>> You're funny.

>> I know, I know.

>> And now back to As the Budget Turns."

>> Where were you?

>> Oh, Budget, I didn't see you.

Um... ( clearing throat ) I was out.

>> Out where?

>> Huh?

Um...

I...

I was walking.

>> Where?

>> ( sighing ) I went to the mall.

>> You were shopping.

Don't lie to me, I can smell the cologne samples.

You were shopping!

>> No!

Yes.

Look... it's not you, it's me.

I... you're just so controlling sometimes.

>> You promised.

>> I was tempted.

Budget, I'm only human.

>> That's why you need me.

Without me, you would be lost.

>> I know, I know, you're right.

Can we just start over?

>> Maybe, but there are going to be consequences if you mess up.

Just try and live without me.

>> Budget, don't ever leave me.

>> Give me all your cards.

>> ( sighing ) >> Come on.

I know you have more than two.

>> Oh, can I keep this one?

This is my Frequent Amigo Taco punch card.

I love this.

>> I'm Greta.

>> I'm Willow.

>> I'm Solana.

>> And we're the Gothard Sisters.

( singing ) >> We travel around the country, performing at events, fairs, festivals, and we bring our fiddling and dancing to audiences of all ages.

>> We wanted to raise money to go and compete at the world championships of Irish dancing, and so we started performing together.

It turned out to be a really fun and exciting way to make money.

Then there came a point where we decided that it just wasn't worth it to continue going to the world championships because it was such a huge amount of money.

Why don't we see what happens when we put that money into the business?

That's been what's kind of allowed us to make this investment into the business.

Well, the total investment, probably, for all of our new equipment is somewhere around $9,000.

So this is one of our new violins that we just got, and we have the wireless on the back and it's plugged in here.

And this is the old violin, and so you see there's no hole in this one.

We did quite a bit of research on these violins and we checked out every way possible that you can plug in a violin before making the decision to buy these violins.

This violin cost $1,500, and then we got a discount on the second two after we ordered the first one.

The neat thing about having all this is that we could pretty much put on a show anywhere if we bring all this equipment with us.

We have three amplified violins that were wireless and plugged in and... and it was really exciting at the first show that we did with the... the new sound.

Budget, Research, Own It, Walk Away, and Negotiate-- BROWN.

>> How was that, Biz Kid?

>> Say, Mates, I was actually looking to get me a new broom.

One built for two, if you know what I mean.

>> Oh, a new broom to impress the ladies.

>> Right.

>> Well, you should get a customized Limbus or a Thunderbolt Double.

>> Well, a new broom can be expensive-- especially if it's custom made.

How are you going to pay for all that?

>> Well, I was going to take a loan out at the Toadwart Credit Union, and I was going to buy a used one so I don't have to pay it off my whole life.

>> Well, my parents are selling their Falling Star 260.

It seats seven and has plenty of room for luggage.

>> Oh, it sounds positively ugly-- no offense.

>> Yeah, I was thinking of getting one of the older Golden Arrows, maybe put a cushioning spell on it for two.

>> Well, are you sure you could afford the flying insurance?

What about the maintenance costs?

>> Well, I'm going to cut back on my toad budget and I've started conserving my potions.

>> Well, you've obviously done a lot of research on the broom, but what about the girl?

>> Right, mate.

How are you going to sweep her off her feet?

>> I was thinking of taking her for dinner and then we were going to go to a movie and then I'm going to take her to this concert... >> He may have enough money for the broom, but he's going to need a loan for all those dates.

>> So you finished your budgeting, but there's more work to do before putting your money down.

You shouldn't do anything until you've done your research.

>> If you don't, you could end up making a bad decision.

>> Thanks to the Internet, it's easy and fast to research the big ticket items before you buy.

>> Say you're planning to buy an expensive camera.

>> Consider your needs.

>> Maybe you want to shoot underwater.

>> Maybe you want to shoot sporting events.

>> You'll probably need a good warranty, so research who offers the best one.

>> There are loads of resources online to help you figure this out.

>> Trade publications or blogs.

>> Don't be too hung up on a specific brand name or manufacturer.

>> Look at any similar items on the market.

>> You may find that something else fits your needs and is a lot more affordable.

>> Once you gather all this information, take some time to think about it.

>> Now that you have all the facts, you can figure out exactly which brand or manufacturer you want to go with.

>> And the best place to buy it.

>> And remember... >> If it looks too good to be true, it probably is.

>> But wouldn't you rather find that out ahead of time?

>> Do your research, Biz Kid.

>> I'm Jasen, I'm the owner of Automotion Photo, and I'm a Biz Kid.

( car engine revving ) I've always loved cars since I was very young, and then I just started to pick up a camera, just taking pictures of cars on the street, and then it eventually escalated to everyone knowing me as "the car photographer."

( car engine revving ) The first job I actually got was at a car dealership and I took pictures of their inventory and I put it on eBay, and it turns out that they sold a lot of cars and they called me back.

I made my first paycheck.

So I knew I needed to buy a better camera.

Before I went ahead and spent that money, I needed to research what camera I wanted and what other accessories and lenses that I needed to continue taking pictures.

I had to work hard, save money, save all the money from birthdays and Christmas.

I was busy looking at reviews-- you know, reviews from other users and other, you know, photographers-- and I narrowed down my choices between a Nikon D90 and a Nikon D300.

I thought about, you know, the different prices I could get on new and used, so I went ahead and I bought the D300 because it's just a better camera and it's more professional and I know I can use it for many years to come, when, you know, I would need to upgrade more frequently if I went ahead and I bought the lower-level camera.

Ever since then, my company has just been getting calls nonstop.

Photography equipment is extremely expensive and I realized that early in my hobby, so I didn't want to put the burden on my parents.

Well, I needed to make a decision about either buying an Xbox or buying a new lens, and I knew that this decision would basically decide my future for a long time.

( camera beeping ) I basically thought about it really hard, and I ended up buying the lens.

After I bought the lens, the quality of my pictures improved, more clients started recognizing that I had new equipment and they had that urge to like, hire me and see what I had.

They key to getting my gear to run my business was budgeting, saving, and researching.

My plans for the future are to launch my new Web site and I'm also starting to expand into real estate, models portraits, and I know that Automotion is a brand that, you know, Miami already knows and it's here to stay.

Hey, Biz Kid, if you want to make a big purchase, do your research.

>> Hello?

>> Hey, Rick, it's Jenny.

>> Oh, hey, Jen.

>> Guess what, Rick?

I'm calling you on my new smart phone.

I saw it at the mall and I just had to get it.

>> Cool, how much was it?

>> A lot, but it's okay.

This phone can do everything.

You know what, Rick?

I had a really fun time the other... Not you again!

Look, this is a really bad time.

>> As a courtesy, I'd like to remind you that this conversation is being recorded for training purposes.

>> Jen, who is that?

Is someone there?

>> It's just my dumb service plan for my smart phone.

What do you want, service plan?

>> It's my duty to inform you that you've reached your limit for Anytime minutes this month.

>> So?

>> So each minute of your call will cost you $1.50.

>> Hey!

>> Rick, I'll call you later.

( dial tone ringing ) Do you realize how important that was?

Oh, wait-- I can still text him.

>> But ma'am, you've reached your texting limit for this month.

Any other letters will cost 50 cents apiece.

>> What?

Oh, my gosh.

You are the worst service plan in the world.

>> I'm sorry, I can't change the way I was structured.

Perhaps you should have considered how I was going to affect your budget before you signed a two-year contract with me.

>> I know, it's just I wasn't anticipating all these additional costs, and now I can't even get a hold of Rick.

>> Perhaps you should send a letter.

>> Snail mail?

No way!

I don't want to talk to you anymore.

>> Okay.

>> Capitalist Peg here.

When it comes to making any big purchase, remember to think BROWN.

>> Hey, Pegster.

So I'm thinking about buying my first car.

The ride seems kind of expensive, but the salesman says I can afford it.

What do you think?

>> Brian, not in your budget.

>> So you've done the budgeting and research... >> And now you're the proud owner of your first car.

>> Congratulations.

Time to hit the road?

>> Not so fast.

>> Ownership has its responsibilities.

>> Remember the speech your parents gave you when you wanted a puppy?

>> It's not just fun and puppy love.

>> You've got to feed it, take care of it, clean up after it, you remember.

>> Same with a car.

>> Or any other purchase.

>> If you budgeted correctly, you'll have enough for the insurance payments that you have to make every month.

>> And you've set enough aside for all the regular maintenance that cars require.

>> Not to mention the gas money.

>> Having a car is an ongoing responsibility.

>> That's what ownership is all about.

>> Now, go take your puppy for a ride to the park.

>> Dude, what's going on?

( car clanging ) >> You did have this car checked out before you bought it, right?

>> Well, yeah, the guy who sold it to me said it'd be cool.

>> Wait, you didn't do any research?

Do you have insurance?

>> Almost.

( car sputtering ) >> Did we just run out of gas?

>> Dude, you know how expensive gas is these days?

>> Wait, so you... you spent all your money on this car?

>> It's the car of my dreams.

>> Dude, this... this car is not a dream, it's a nightmare, okay?

I'm...

I can't get out now?

What is... >> Ho, I'm Chelsea, and this car is my baby.

I feel like my car represents me, who I am, and who I want to be.

Who I'm striving to be.

I go to Madonna University, I'm in Fashion Merchandising, and I graduate next semester with a Bachelors in Fashion Merchandising and a minor in business.

>> Here you go!

>> If you want to score my business, you better have a good shot, because I do my research and shop around.

Being on a soccer team, I always research the other team and their key players, who I'm going up against.

That also helps me as far as researching my loan and my car and anything I do in life.

Me being a college student, paying for my own tuition and other expenses, I can't afford to get the luxury vehicle or the brand new vehicle.

I got a used vehicle pretty much brand new.

When making a big purchase, make sure to do your research so you're not taken for a ride.

I think research is very important.

I did most of my research all online, looked at various dealers, looked at going prices for private sellers as well.

The importance for shopping around was critical for me just because I don't have the funds to just go out and buy a new car, so I had to look... not only shop around for cars but also shop around for loans.

And with me shopping around, I believe I got the lowest rate I possibly could and got the lowest price, bottom line pricing, that I possibly could.

So it did turn out great for me.

Because I did my research, I knew I was getting a great deal on this purchase.

>> The BROWN rules apply to any big purchase.

Maybe you're shopping for your own dam, your own cargo ship, your own racehorse, or maybe your own sweet ride.

Make sure you Budget, Research, Own it, Walk Away, and Negotiate.

Ooh, an airplane.

>> I love to fly.

You're in control of wherever you go and you're not walking, you're not on the ground; you can go anywhere in the sky.

My dad picked me up from school one day and we walked in here and see some people standing around the table and figured out there's a flight school here, and they were like, "Do you want to start flying?"

I'm like, "Sure," and I've been here ever since.

Mac is a good friend he's developed my interest in airplanes just because, I mean, he's just taught me everything I know.

>> He trades all the work he does for me for flying time and hangar rent and other things.

>> Mac said, "You've been working here for so long, you need to get a project so that when you're not working for us you can work for yourself."

I started looking at planes I wanted and I decided I wanted a 170B after we put one on floats.

I just was talking to Mac about how great these airplanes were, and Mac said, "Yeah, it's just... it's a great airplane that flies... everybody says it flies like a sparrow."

So looked around a little bit, and my dad's boss knew somebody who had one, so I just bought that and we put it on a trailer and shipped it here.

The plan was to buy a project.

A Cessna 170B, just the fuselage; just exactly what you see behind me with no wheels on it or anything.

If you bought a plane right now, a Cessna 170B, it'd cost you $35,000, $40,000.

It needs an inspection, it needs repair.

When I bought it, I paid $12,000 for everything-- all the parts, the plane, the gear.

I own this plane, and everything I do on it, if I mess up, it's my fault.

I don't blame anybody for anything I do.

But this is my decision and I'm sticking with it.

>> I mean, I rebuild airplanes like this all the time and it's a big deal.

We've got to do the airframe, then we've got to do an engine, then we've got to do set of smash and half floats and paint it and interior and all this stuff, so he's looking at three years.

>> I have to buy a lot of nuts and bolts for various things and rivets, which are the little bumps you see on the airplane.

I email people, I respond to ads, I post ads, and sometimes I just look around on the Internet and find something that nobody else has ever found.

My overall plan is to build this airplane the way I want to and make it exactly just how the way I want it, just mine, and fly it and keep it probably forever.

When my airplane's done, it's going to look something like this: ( over radio ) Hey, Biz Kid, if you're going to make a big purchase, make sure you own it.

>> So I reckon that I'm going to make a big purchase, Lucky.

I'm going to buy one of them newfangled horseless carriages.

>> Did I hear you say you was fixing to make a big purchase, Fast Buck?

If you do, make sure it's BROWN!

>> BROWN?

>> Yup-- Budget, Research, Own your own decision, Walk Away if the deal ain't right, Negotiate if it is, B-R-O-W-N, BROWN!

>> I was thinking sea foam.

>> Oh, yeah, and Bluetooth.

>> So you've budgeted... >> And you've also researched.

>> You know what goes into owning a car or other big purchases.

>> Now you need to walk away.

>> That doesn't sound right, does it?

>> But it is.

>> You need to imagine not buying it.

>> Just because you can afford it doesn't mean you should buy it.

>> If the salesperson is pressing too hard... >> If you have doubts that you'll be able to keep up with the payments... >> If you're not sure you really want it... >> Walk.

>> Walk.

>> Just walk away.

>> Put her there, put her there, buddy.

Oh, yeah.

This is the car you've been looking for.

>> He didn't budget.

>> This car says, "You."

This is a beaut!

( car clanking ) Listen to that.

>> He didn't research.

>> You're going to get 1,000 miles per gallon with this baby and it will never break down.

>> Wow, never?

>> He didn't own it; he didn't walk away.

>> Does it come with a guarantee?

>> Uh... yeah, I guarantee it's a car; oh, yeah.

>> Wow, honest?

>> I...

I'm sorry, what did you say?

>> Honest?

>> Oh, yeah, yeah, honest.

>> And he didn't negotiate.

( car engine sputtering ) >> Now he's stuck with four tires and a leaky windshield.

>> Why won't it start?

I have to get home.

Why won't it start?

>> I don't know.

>> Why won't it start?

( screaming ) >> See I Was a Teenage Lemon Buyer.

>> You're still here?

That must mean you're interested.

>> The final step in any big purchase is to negotiate.

>> Nobody wants to pay too much or get ripped off.

>> This is where you put that research you did to good use.

>> Step one in any negotiation is to know your worth.

>> Find out what other people are paying... >> And if the seller's asking for too much, call him on it.

>> Step two is to know the extras.

>> Figure out what you need and what you don't so you don't get talked into any unnecessary extras.

>> Step three is to know the deals that are out there.

>> Use that information to negotiate the best deals.

>> Finally, never... >> Never.

>> Never.

>> Never.

>> Rush a big purchase.

>> Just come see me, Honest Al.

I'll take care of you.

>> My name is Leon.

I'm a master negotiator and a DJ.

I was really into leadership with ASB, and we did things like plan dances and fundraisers, and I figured an easy way to save money for the school would be to start coordinating events like that myself.

This company right now, I probably couldn't have gotten it to the magnitude that what we're doing right now without negotiating for most of the stuff that I have now.

Serato Scratch Live.

( laughing ) That is probably the most essential item on professional DJs-- at least, professional DJs that do what I do.

Going into my junior and senior years in high school, I knew that that was something I needed to invest in.

And I spent that month going on Craigslist, researching online, all that kind of stuff.

None of that was really working out, so I went to my DJ friend that lives down the street.

So he didn't really need his box that much.

I couldn't afford to just give all $600 in one setting.

Okay, so I just finished my last gig.

I had to pay for some other things.

I have $300 up front.

I know we agreed on $600.

I want to know if there's a way I can give you $300 now and give you another $300 after my event next week.

>> Yeah, that works fine.

>> Awesome, man, I really appreciate this.

The negotiation was that I'd pay $300 up front, and then upon completing another event, I paid him another $300, and now I own the product.

>> I mean, this is something that, for the most part, everyone has to just go and pay for one.

It's great that he found a way that he could get around that and sort of pay in... pay in small steps, and at the same time acquire something he needs for the business.

You can really get a good deal on something if you know the right things to say and you know how to negotiate with people.

>> When negotiating to get a big purchase or any equipment, you're always wanting to think about what's going to be the best price.

Are you getting what you're getting for what it's worth?

The other thing is, I think about what does the other person want?

How can I give the other person what they truly want and desire without losing too many assets myself?

Negotiation is important in any business because it allows you to save money over time and develop relationships with the people in which you're doing business with.

Hey, Biz Kids, spin a negotiation in your favor and you'll save money on your purchases.

>> Now, class, there are some things to remember when you're planning to make a big purchase, and I have put these key points in easy-to-remember letters.

First of all "G-V-N," which stands for "Get Very Knowledgeable."

>> Excuse me, doesn't "knowledgeable" start with a "K"?

>> Who's teaching this class?

>> You are, sir.

>> Okay.

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

The correct answer ain't ROYGEEBIV, that's the color of the rainbow.

It's BROWN, Biz Kid.

And let me tell you, I bought myself some brown wheels last week.

>> B-R-O-W-N. >> Budget, Research, Ownership, Walk Away, Negotiate.

>> Just follow these simple steps, and soon you'll be a master negotiator.

Now, who wants to go help me buy a BROWN car?

Actually, I was sort of thinking a yellow car-- Young, Elegant, Loveable... >> Laughable?

>> Outrageous?

>> What?

>> You always remember your first car.

That's a fact.

I think you've done a pretty good job with this one.

>> Thanks.

>> I really like the way you negotiated, you didn't rush into buying it, you did your research.

>> It's pretty much the same formula for any major purchase.

You got to follow the BROWN rules: Budget, Research, Ownership, Walk Away, Negotiate.

>> I'm curious-- what does this button do?

>> I don't know what that button does.

Sweet!

Ejector seat!

>> And then K-F-M... >> "Keep Financing Manageable?"

>> No, it means, "Get Lost, Jenkins."

>> But that's not even close.

>> Who's the teacher?

>> You are, sir.

>> Thank you.

>> But this is my Frequent... Yummy Amigo Taco Punch Card.

>> Yummy Amigo Tacos.

>> I really like it, can I keep it?

>> Mm!

>> Can I keep it?

>> ( laughing ) >> ( laughing ) >> I got it, I got it.

I'm better now.

( laughing ) >> 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