The Clayton's are considering buying a house to escape from their tiny apartment. Meanwhile, Danny's best friend Jane is sleeping over way too much, later it's revealed,her mother is sleeping around.
Alice is fired from her head cashiers job after her boss finds out she has applied for a new job as a legal secretary. Meanwhile, Danny is crushed after her friends spread rumors about her and first boyfriend Mathew.
Burt and Alice argue over whether to let 12 year old Danny go out to the movies with older Mathew alone. While Alice is at the ATM machine the car is stolen.
Alice begins smoking again after being harassed by her teenager boss at her new job. Danny is caught with cigarettes in a mall bathroom. Burt is getting unwanted advances from Vicki.
The Clayton's are moving to their new home and decide to trash the apartment after getting in an argument with the landlord. There's a big problem, the house isn't ready for the move yet. Now they are forced to live in their old apartment which now has no water and the heat turned way up.
Christmas time brings Alice's mother for a visit but also brings stress as she quarrels with Alice after finding out Danny has been skipping school. Burt tries proving to Sean that Santa exists.
The Clayton's are so proud of Danny bringing home an A on a school report, that is until they discover the subject dealt with her writing to a pen-pal in prison.