Music Professor Lieberschmit recommends that would-be singer Bobbie Jo go to New York City for three months to take singing lessons. Kate barely manages to borrow $300 for Bobbie Jo's trip from Mr. Guerney at the bank. Billie Jo announces that her secretarial school is giving her a chance for a secretarial job at a Hollywood studio. Along with the job there is also the possibility of a screen test. Kate is able to get an extra $100 from Mr. Gurney. Then Betty Jo announces that she has received a Phys-Ed scholarship at a school in New Hampshire. Kate figures that only one girl can go and now has to decide which one. Before Kate can, the girls decide Billie Jo should be the one. Billie Jo says she has fallen for a boy and that Bobbie Jo should go. Bobbie Jo says it will cost too much in New York and that Betty Jo should go. Betty Jo says she found out it's an all girl school and doesn't want to go.