Lilly sees Dana and Rich kissing, and proudly announces to Frank and Carol that Rich and Dana are going to have a baby. It becomes necessary that Lilly's parents tell her The Facts of Life. Lilly then shares her new wisdom during show and tell, which causes a conflict between Frank, Carol, and the parents of Lilly's best friend.They agree to overlook their differences for their children. After Jean-Luc tutors Al in French, he notices JT and Rich are into horse racing and helps them win some money. But when JT and Rich want to empty their college fund, Jean-Luc is forced to teach them an invaluable lesson about gambling.