>> 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.

>> ♪ Why am I so talented and yet don't have a big ego?

♪ Hey, you know what?

I'm getting ready to go out on that stage and perform for those young people, and I'm going to do a song I call... well, it's a song about economic cycles that I call... >> 30 seconds.

>> ..."A Song About Economic Cycles."

And see, the deal is it's about the economy and how what goes up must come down.

It's always like that.

It's always going through a period of expansion, and then prosperity, and then contraction, and then finally recession.

And then it all happens all over again.

So that's why I say what goes up must come down.

It, uh, doesn't always happen when you think it's going to happen, but it will eventually.

>> Kaching, you're on.

>> I've got to go, because I'm on.

>> Okay, class, let's hear it for King of Kaching.

( crashing sounds ) >> ♪ 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!

♪ >> Economic cycles, like the eternal motion of the waves in the ocean.

>> Surf's up, dude?

>> Well, economic surf, you might say.

>> Um, you're not going to get all economic weird on me, are you?

>> No, I'm just saying that the waves in the ocean are a lot like the cycles in our economy.

You see, it starts with a surge, like an economic expansion.

>> Good times, right?

People making money, doing well.

>> Yeah, there's prosperity.

The thing is, though, it's a good time to save, because like any wave in the ocean, it doesn't go up forever.

You see, the wave crests here, and then it starts to go downhill.

>> Bad times, people losing jobs, not doing so well.

>> Right, that's an economic contraction.

The thing is, though, if you planned ahead, say you saved during the expansion, you'll be able to weather out the storm, because the wave may eventually hit the beach.

>> Like a crash.

>> Or a recession.

Prices drop, and money's hard to come by.

>> Hmm, tough times.

>> Yep, but the flip side is prices adjust and become lower, so it's a good time to buy and invest if you've saved beforehand.

>> Because?

>> Because the next economic wave is sure to come, and I'm going to see it coming.

>> Bet you didn't see that wave coming.

>> Substitute Teacher!

>> It's cycles, it's all about cycles.

>> Bicycles?

>> No, not bicycles, economic cycles.

They're always going up and down and up and down and up and down.

>> That sounds more like a wave, Substitute Teacher.

>> Well, you can wave good-bye to your money if you don't pay attention to the economic cycles.

Now, when they're on their way down, it's a contraction-- things slow down, there's less money.

We're heading for a recession-- wages go down, people are getting fired, except for me, because I have tenure.

>> Huh?

>> Never mind, doesn't matter.

The point is that the wave never stays down forever-- it goes back up.

It's in expansion, more money comes into the economy, there's prosperity, the wave goes up, and you know what that means.

>> We go surfing.

Hey, surf's up.

>> I think that kid's going to put me into a depression.

>> I'm John Johnson, and this is Running Wild Paintball.

It's a field for people to come and to play the sport of I decided to start my own business, be my own boss.

When we first started, it was actually a lot harder than I thought.

Once we opened up we actually weren't making our projected profit-- I mean, we weren't making enough to keep bills paid.

Everything wasn't meeting at ends yet.

We knew something had to change.

The biggest thing we did to make our goals was we changed our prices.

On Friday nights we completely waived the entry fee.

On Saturdays we opened the field up for college students.

And then we also give big group discounts.

The economy's the real reason that we had to start up all these discounts and had to waive the entry fee.

So I'm sure I'm not the only one making these discounts-- it really has to be done to draw people in.

Really now that everything's changed and that we're giving more discounts, everything is starting to look up, and we're drawing new people in.

My advice for any kid that's going out and trying to start their own business is listen to what other people have to tell you.

Without those other people, without their advice, I wouldn't have half the amount of business that I have now.

A Biz Kid always finds a way to make a downturn an upturn.

>> Everyone has their ups and downs, and the economy's no different-- sometimes it's good and sometimes it's not so good.

>> Sometimes the economy is just kind of flat, but then things start to get better.

Stock prices go up as businesses do better.

More people get better jobs.

That pay well.

Consumer prices aren't rising too fast.

And people can save up and buy things.

And before you know it, we have a nice, cheery economy, in a pretty color too.

>> Now, those are the boom times.

>> In stocks we call this a bull market, because people are buying stocks aggressively.

>> But eventually things start to slow down, prices go up, maybe corporate profits are lower, and stock prices go down.

People just don't have as much money to spend on things.

Now, in the stock market this is called a bear market, because the sales are slower, like a bear in hibernation.

In the overall economy this is called a contraction, or even worse, a recession.

It's gone from boom... to bust.

>> These economic cycles-- expansion, prosperity, contraction, recession.

I've got to survive this downturn.

Focus on my core customers.

Conserve cash, reduce expenses, manage proactively, get leaner, more efficient.

But first I've got to turn off this music-- it's driving me nuts.

Now maybe I can hear myself think.

>> And now back to As the Economy Turns.

>> We have to talk.

>> Oh, one of those talks.

>> Yeah.

I've...

I've been your economy for a while now, and I just don't think I can keep on doing this.

>> What are you saying?

>> I have to go into a recession.

>> But, wha... Why, was it something I did?

>> No, it's not you, it's me.

>> Oh, please don't.

>> It's just time for me, you know?

It's time for something different, time for... time for an economic downturn.

>> What about my investment plans?

What about my... my modest but valuable real estate holdings?

Those things meant something to me.

>> I know that, but with every economic boom there's always a recession, and this time it just feels right to me.

>> Here's your check.

>> Can I still buy things with you, can I still invest?

>> Your portfolio's going to devalue, and some of your investments are going to fall through.

But listen, maybe in a couple of months we can get back together and get things back to the way they used to be.

>> You complete me.

>> I have to go.

I'm sorry.

Also, we're in an economic downturn, so you might want to save your credit for later.

>> Hay, Biz Kid.

Get it, hay?

Washington, at Gold Creek Equestrian Center.

We are the largest licensed facility in the Northwest.

Our whole first barn is all lesson horses except for maybe three or four.

Good boy.

Quite a few people have fallen in love with our lesson horses, you know, whether it's going on a trail ride, because we do have trails that go off from Gold Creek or, you know, shows.

>> I love riding Kahlua.

>> When I first started riding, the economy was quite well.

I mean, that was 13 years ago, so we were... Ouch.

Because of the economic upturns and downturns, you know, it can be just like riding-- if you're not prepared you can fall, and if you are prepared you can do well and win and succeed in the horse world.

Outside leg back kiss.

Good.

Being in an upturn for us is quite well, because we get a lot of the people that come out and ride, and so they want to, you know, buy horses for their children or for themselves or lease horses and do lots of horse shows.

In a downfall, when people are having to sell their horses, they want to sell their horses and put them in training and get them sold quickly and get them in shape.

So the rearing or bolting or bucking you off and that's... you know, people typically don't want to buy dangerous horses.

A lot of facilities around us had to close down, and we're actually benefiting from that, because we're having a lot of their clients come to us, and so we do profit from that as well.

The biggest lesson that I would say to younger kids-- save your money would be the best thing.

Just put it in savings, because it does add up quickly.

Horseback riding is like economic cycles-- you've got to be ready for the downturn so you can get back up and win.

>> Hemlines, like economic cycles, go up and down.

>> Round and round it... >> I make money when the economy is up or down.

Speaking of down... >> Hey, Bossio, how can you make money in the stock market when the economy's down?

>> I'm making money right now.

>> Whoa, Pegster, you're a genius-- we're rich.

>> When the economy is down it's the perfect time to buy.

Prices are low, and you can find stocks at rock bottom prices.

>> When it comes to the economy, you can make money in economic upturns and downturns.

>> But timing is every... ...thing.

>> When the economy is down, if there's a high inflation or a recession, people begin to panic.

>> And begin selling off their valuable assets like real estate.

>> But because so many other people have the same idea... >> And because everyone is trying to save what money they have... >> Sales slow way down.

>> Sellers have to sell what they have for low, low prices just to compete with all the other sellers.

>> And that's actually the perfect time to buy.

>> It's called a buyer's market, because it's the perfect time to buy assets.

>> Then when the economy is good, people are more willing to buy things like cars or houses, almost anything.

>> And they'll sometimes pay ridiculous prices for things, because when there's more money... >> People are buying more and there's more demand.

>> Plus, they're not as worried about throwing money around.

>> That's called a seller's market, because it's the best time to sell.

>> You make a small investment when prices are down, hold on to it for a while and then turn around and sell it for a big profit.

>> It's called buy low, sell high, and... >> Lizzie, your line.

>> It's all about timing.

>> Hey there, why don't you guys relax and join me at the beach?

>> It will not always be this way.

>> What way?

>> Hot cycle now-- berries, nuts plentiful.

>> Suit yourself.

You'll be sorry.

A-hah, I found you.

I need food-- I'm starving.

>> I will trade you some berries for your robe.

>> What?

This is keeping me warm-- I am not trading it for a few berries.

>> Suit yourself.

>> Okay, here.

I'll remember this.

>> Nice robe.

Ha, ha, ha, ha, ha, ha, ha, ha.

Ouch, what was that for?

>> You always play with food.

>> And now Tooth Fairy Tales.

>> 15, 16, 17, 18, wow, big haul tonight.

Lots of teeth, and lots of gold fillings, too.

I wonder what I'm going to do with all that gold.

>> Hey, Tooth Fairy.

>> Oh, go back to sleep, kid.

>> I overheard you talking about gold.

>> Uh, well, I got a lot of gold fillings saved up and I'm wondering... >> You should totally sell now.

No, I'm serious.

Sell now.

>> Huh?

>> Yeah, see, gold has peaked.

You should sell the gold and buy real estate.

It's a buyer's market for real estate right now.

>> And, uh, how do you know all this?

>> My dad's a broker.

>> Ah.

>> So how much do I get for this tooth?

>> Go to sleep, kid.

Hello?

Yeah, sell the gold and buy some real estate, property.

Yeah, yeah, I'm on the lawn.

>> Gold coins.

>> Hi, my name is Conner and this is my gold mine.

>> Throughout the history of economic cycles, the value of gold has always had some value.

It has gone high up in value or it has gone low in value.

>> Country Boy Mine was founded hiking up the top of this mountain.

And they found a little outcropping of gold.

That's how a gold mine will start.

And then once they get to the solid rock, they would drill a hole in there, and put a stick of dynamite in.

It go kaboom, shatter the rock, kaboom, and it will all come crumbling down.

Gold was worth a lot less back through the 1800s and through the 1940s, but now from the economic conditions it is really expensive.

Just last summer it was $350.

This summer it hit over $1,000.

This here is one ounce of gold, and here's the price of gold today, and it is $799.

And this is one whole ounce.

>> As these economic cycles fluctuate over the history people always put a value on gold.

>> Hey, Biz Kids, I found some gold in this pan.

>> And sometimes it is a mystery, right, kid?

>> I don't know.

I think gold is valuable because it's hard to find, because it's shiny.

They'll be using it in space shuttles.

It's... um, I gu... >> Cuckoo, cuckoo, cuckoo, cuckoo.

>> I have no idea.

>> Eureka.

>> Now, that was cool.

>> ♪ Buy, sell, save... ♪ Economic cycles!

>> Take it from the Tooth Fairy-- economic cycles go up and down.

>> Basically, the economy goes up, and the economy goes down.

And when it goes up we have prosperity-- there's more jobs, people have more money to spend and invest.

And when it goes down, there's fewer jobs, people are spending less, money is tight.

The economy, it's a cycle.

It goes up, it goes down, it goes up, down, up, down, down, down, up, down, up, down, up, >> My name is Katy Orbino.

We are at Toyota of Lake City.

Selling cars for the past years I have noticed some changes in the car business, the ups and downs.

What was the question again?

I'm sorry.

>> Have you noticed any economic changes in the car industry?

>> Well, I noticed when the economy is up that people are a lot more open to maybe getting extra options on their vehicles-- maybe a moon roof, spoiler, the CD changer versus just a tape player.

But those are some luxury options that people will skimp on or splurge on depending on how the economic times are.

So if everything looks good here on the Yaris...

When the economy's down they might tighten up just a little bit-- maybe instead of going for a Tundra they might want to go for a Camry or something a little bit smaller, a little bit better fuel efficiency.

For example, I have a nice Prius you might want to take a look at.

This is actually the number one fuel efficient vehicle in the nation.

Personally, when I saw the market kind of taking a turn, I traded my vehicle in for something a little more fuel efficient.

Any questions?

I've downsized my place-- I went from living downtown to a little bit... to sharing a house with a couple of friends.

When sales were up, when I was moving vehicles, I was going on vacations.

Me and the mall were actually really good friends at that time.

My closet got a little fuller, my car might have been washed a few more times, got detailed.

I was driving more places, because I had money to put into my gas tank.

>> Hello, hello.

>> How the economy does, working for a great company, that...

I'll be fine, we'll be fine.

It'll be fine, okay.

>> Hey, Biz Kids, pay attention to economic cycles.

>> Timing.

>> Hello, everybody, and welcome to Buy Low Sell High.

Contestant number one, here is your first question-- when is the best time to invest?

>> I'm not sure.

Can I buy a vowel?

>> No.

The answer we're looking for is when prices are low.

>> Low.

>> Right.

Contestant number two, how you doing?

>> Good.

>> Good.

Think about the name of the show now-- Buy Low Sell High.

When is the best time to sell?

>> Can I use a life line?

>> Okay, that was close.

The answer we're looking for is when prices are high.

>> High?

I choose curtain number two.

>> We don't have...

Okay, that's the end of our game.

I'm your host, Bill Dollar, and to get maximum return on your investments always remember to... >> And now my brother Jorge and I demonstrate economic cycle.

>> Hello.

>> Economic cycles go up and down.

>> Well, sometimes they stay flat.

>> Sometimes they go up and down.

>> Sergei, please to let me go up one time.

You always get to go up.

I want to go up.

>> No, you go down, you go down.

I always... >> When it come to economic... >> Woo!

>> As I was saying, when it comes to economic cycles... >> Whoo, beep beep.

>> What's you doing there, Austin?

>> Oh, I'm just riding my economic cycle.

>> You like going in circles, don't you?

>> Well, you know that a lot of people are interested in economic cycles, like the person that you're going to ask for a job.

You see, if economic cycles are down, you're a lot less likely to get hired.

>> You know, my dad told me I can always find a job in the family business.

>> Well, yeah, but you see, if the economic cycle is down, it will affect whether or not your dad can expand, or even if he can stay in business.

You see, a lot of businesses are dependent on the economic cycle.

Ask him-- he'll tell you.

>> I don't want to get a job right away.

I want to go to college first.

>> And you're going to pay for that how?

>> I have an education savings fund.

>> All right, well, the economic cycle determines whether or not your fund can make a lot of interest.

So wait, how long did you want to stay in school for?

>> Very funny.

>> All right, I'm serious.

And transportation costs-- the economy has a huge effect on the cost of transportation.

You've seen how much a gallon of gas costs these days.

>> You're pretty good at this.

>> Thanks.

I'm just saying that the economic cycle may seem boring, but it's very important, you know, to kids, even.

>> Well, sometimes economic cycles result in economic crashes.

>> Oh, well, we're not due for another economic crash for at least anoth... (crashing) >> Now it's time for the lunch cycle.

>> Ow!

>> Coming this fall from Biziversal Pictures.

In a world where the economy is causing everyone to tighten their belts, we're making cutbacks-- a lot of them.

Like big name stars.

They cost too much.

And we had to lay off our special effects department.

>> Yes, it was I who crossed the giant mutant killer chicken heart with the rate of inflation.

>> Professor, look-- it's growing.

>> Yes, so it is!

Come!

Come, my giant chicken, come!

>> Shot on a camcorder.

>> There it is!

Fire at will.

>> No, no.

>> With no money to pay for editors, we had to get the janitor to do it.

>> Oh, what?

This is... >> No, no.

>> This season's economic disaster has a new name-- Attack of the Inflation Chicken.

>> Money never burns up, it just changes hands.

whatever opportunity we can find to be in front of that trend.

I'm Artin Afsharjavan, I'm 19. and I'm a Biz Kid.

I can't even see-- are my eyes open?

I'm doing...

I own a gas station.

I own three gas stations.

>> We pumped about 6,000 gallons this morning.

>> 6,000 gallons-- it was a good day, then, huh?

>> It was a good day, yeah.

>> I also own a limousine company.

I own a stone business and warehouses like this.

>> We just made a great purchase on these-- you'd be real proud of us with these.

>> I own this restaurant too-- come on in for lunch.

How was everything?

I was 13 years old when I got into business, starting with vending machines.

And from that point forward I decided to go to the Internet so nobody could see what I looked like, being so young.

Once I was in the Internet business I realized that my age was not only a good thing, it was a real good thing.

So I decided to use my age to my advantage and go after businesses people didn't think it was possible to do at such a young age.

This is our new vault for our online diamond business.

You learn very quickly when you're in business that everything affects you-- not only what happens in your local area but what happens around the world.

Everything always has its ups and down cycles-- the top never stays at the top, the bottom tends not to always stay at the bottom.

But we try to always anticipate what the future holds and move ahead.

What's it trading at today?

We cannot turn a blind eye to the economy of the world.

We have to always keep our eyes open and our ears to the ground trying to see what's going on, where it's going on, and trying to adapt ourselves accordingly.

The economy affects everybody.

A very good saying that was once said was, when people are greedy be fearful, and when other people are fearful, be greedy.

So when the economy's bad, it's time to be greedy, because everybody else is panicking.

And when the economy's good it's time to hold your ground and let everybody else do what they have to do.

Bad times are going to hit you, but it's those bad times that you find the best opportunity to make a quick return off of, and also set yourself up for future longevity.

It's very important to keep a cool mind in business and understand that you're not always going to be making money every day, and there are always ups and downs.

And it's just a matter of trying to take those ups and downs to your advantage and do something with it.

Always remember that the world keeps on growing, and there's always opportunities around.

You've just got to keep your eyes open and be patient for it.

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

If you answered A, congratulations, you're a Biz Kid.

If you answered C, well, that's okay, too.

>> Still concerned about the cycle?

>> Well, sort of, but the cycle does control a lot of what we buy, from candy bars to buying cars.

>> I think you need to have a candy bar and relax.

>> Well, no, there's more to it than just buying things.

>> Well, how much more?

>> Well, it determines whether or not we can get a raise, or even get a job in the first place to get a raise.

>> So we need to pay attention to this.

>> Yeah, because the economic cycle can really affect a lot of everyday things, from buying and selling and investing to just vacations.

>> That's a lot.

>> Yeah, so we need to pay pretty careful attention to the economy around us so we can plan on when we should buy and sell and invest.

Well, the most important thing, of course, is... >> Lizzie?

Lizzie, you're on.

Lizzie!

>> Timing.

>> There was a show, there was a show.

Whew!

What are you doing there?

You could give clumsy lessons to an ox.

Hey, I'm probably going to have to go back on stage to do an encore.

That's what usually happens, you know.

Do they need me for an encore?

They don't?

Okay, well, they're probably just as exhausted as I am out there, that audience, because they really seem to understand what I was telling them about economic cycles.

When I sang that song, I compared an economic cycle and its ups and downs to, like, a yoyo-- up and down, up and down.

And man, was it thrilling having that crowd shouting in one voice, pointing right at me on that stage, and yelling, "Yoyo, yoyo."

Yeah, that felt pretty good.

>> All right, so now you've heard some of our stories and we want to hear some of yours.

>> Maybe you or a friend have started your own business or thought of some ideas to help >> Yeah, we want to hear about those.

So, go to Biz Kids.com and share the good news.

>> Who knows- maybe you'll end up right here on the show!

>> Well, not exactly right here, but, yeah, on the show.

>> How about right here?

>> Hmm.

No, not really.

>> How about right here?

>> No, not there.

>> 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