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You have to play the best 5 cards you can.
Kid one's hand is 
Kid two's hand is 
So Kid one has a higher (better) flush, and he wins
The term kicker is misleading in this case. The cards they hold are both used in making the hand. In another situation:
Player 1 has 
Player 2 has 
Board is 
Player one's hand is 
Player two's hand is 
Player two would win because he has the best hand either of them can make.
If we change the board by one card though...

Now...
player one's hand is 
player two's hand is 
They both hold hands of the same value and they will split the pot.
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