It's a case of kiss and tell for Nicholas when he kisses a classmate and his teacher tells his parents that he is sexually harassing the girl. Meanwhile, after seeing Zaria kiss the son of a record company executive, Michael tries to get the executive to listen to his demo tape.

Robert decides to cancel the Christmas holiday because he is disgusted with his children's greedy behavior. On Christmas Eve, all of the children have the same strange dream where they are visited by elves, which look a lot like Wendell and Robert. The elves make each of the kids realize how terrible they've been acting. The next morning Robert has a change of heart and decides to celebrate Christmas as usual. However the kids decide to celebrate Christmas a different way by giving all of their presents to needy children.

Zaria runs for class president against Bradley, a popular senior who stoops to use dirty politics by spreading false rumors about her. Furious, Zaria discovers that Bradley has a drug problem and was about to enter the school's counseling program before it was cancelled. Her moral dilemma is whether to sling the mud back at Bradley.