Seven-year-old Billy Miller starts second grade with a bump on his head and a lot of worries, but by the end of the year he has developed good relationships with his teacher, his little sister, and his parents and learned many important lessons.

Four-year-old Sal cannot find a gift she recieved from Santa, her new baby sister still does not have a name and takes up all of Mama's attention, and her brother Billy is annoying, but Sal finds her own strengths over an eventful Christmas season with her family.