June has had it with Wally and Beaver's fighting and demands they make a pact to be nice to one another and do things together. However, when each boy gets an invitation for individual social outings, they each attempt to break the pact.

Wally and Beaver dread attending dance school, so when suddenly Wally takes a liking in it, June and Ward are dumbfounded. It seems Wally has developed a crush on a girl named Penny and Beaver soon feels neglected and left out when Wally begins spending all his time with her.

Beaver is invited to Linda Dennison's birthday party and quickly discovers that he is the only boy that she invited. Fearing for his reputation, Beaver tries his best to get out of attending, but June and Ward are insistent, not aware of the situation Beaver's in.

The local bully, Lumpy Rutherford, has been picking on Beaver and Wally and, thanks to a story Ward tells them, they decide to play a joke on Lumpy. However, their ploy catches the wrong person—Lumpy's father and Ward's co-worker Fred Rutherford, is caught in the trap.

Wally and Beaver want to get brand new bike and they ask Ward for some money. He suggests that they earn the money. This leads Wally and Beaver to get a job delivering papers. Later, while trying to help the boys out, Ward and June inadvertently almost get Wally and Beaver fired.

After Ward's bragging about Wally and Beaver being responsible, Herb and Janet Wilson assume that it would be all right to leave their 4-year old daughter in Wally and Beaver's care while they go out to a party with Ward and June. Trouble begins when the youngster locks herself in the bathroom.

Ward tries to teach Wally and Beaver the importance of saving by giving them a piggy bank. The boys quickly save up a handful of change and are all ready to spend it on some baseball equipment. However, unknown to their parents, they change their minds and decide to spend the money on a most unselfish gift.