Instructions
Install a fully-charged battery and empty memory card into the Nikon L120. Press the "On/Off" button on the top right of the camera to turn it on.
Press the "Menu" button on the back of the camera and toggle through the menu screens and select "Exposure Mode". Change the setting to "A" for "Aperture priority". In this setting you control the aperture or lens opening and the camera will select the appropriate shutter speed to create a properly-exposed picture. Using the largest aperture on the lens is represented by the smallest number. This will create a picture that has a shallow depth of field. This shallow depth of field results in the blurred background you are trying to achieve.
Turn the input dial until the aperture setting is at its largest. The L120 has a floating aperture ranging from f3.1 to f5.8 depending on the focal length the lens is set on. When you set the lens aperture to the widest setting, the camera will adjust the setting as you change the focal length of the lens to the widest opening available.
Press the shutter release half way down to activate the camera's focusing and metering modes. Press the shutter release all the way down to take the picture.
Press the "Review" button on the back of the camera to review the picture you just took and confirm the background is slightly blurred.