It is Pinocchio's first Christmas, and Geppetto is trying to figure out how to buy a Christmas present for him, so he sells his boots to buy an arithmetic book for Pinocchio, who later on sells the book to buy a present for Geppetto. However, he soon runs into the Fox and Cat, whom he thinks are his only friends. The Fox and Cat convince Pinocchio that he should bury the money he got back for the book in the snow, and when the sun sets, they will grow into a Christmas tree covered with lots of gold and silver coins. Pinocchio does exactly that, and then, while he's not there to pay attention, the Fox and Cat dig the coins out of the ground before he returns.