Henry purchases a video camera for his photo studio and firmly warns Punky that she is not to touch it under any circumstances. However, while he's away, she and her friends make an exercise tape and think he won't know it - until the camera breaks.
With Mrs. Johnson's assistance, Punky and Cherie go into the babysitting business. A woman leaves her baby with them, but when the three of them take it out for a stroll, they return home with another infant.
During the Christmas shopping season, Punky sees a friend shoplifting merchandise and decides to steal a present she can't afford for Henry. She regrets this when she accidentally switches bags with Mike, who ends up in prison.