A girl named Cathy, one of Esperanza's neighbors, tells Esperanza about the neighborhood. She says she'll be Esperanza's friend for a few days, but then her family is moving. Cathy says she's related to the Queen of France, and someday her family will inherit some property, but for now they have to move because the neighborhood is going downhill.
Cathy has warned Esperanza about the two girls across the street, but in "Our Good Day" Esperanza decides to be their friend anyway. She gives the two girls (Lucy and Rachel) some money because they are all going in together to buy a bicycle from a neighborhood boy. Cathy leaves, and Esperanza, Lucy, and Rachel take a ride on their new, wobbly bicycle.
In "Laughter," Esperanza says she and Nenny don't look alike, but that there are likenesses between them deeper than looks.
The girls visit a neighborhood second-hand store ("Gil's Furniture . . . "). Nenny asks the owner about a music box, and he opens the lid and lets them listen. Nenny asks how much it costs, but the storeowner says it's not for sale.
Cathy has moved, and a boy called Meme Ortiz moves into her house. There's a backyard with a large tree in it. The children hold the First Annual Tarzan Jumping Contest in this tree, and Meme wins, breaking both arms.
Downstairs from Meme's family, a Puerto Rican family has moved in, including Esperanza's brother's friend Louie and two cousins, one of whom is an older girl named Marin who spends all day indoors, babysitting Louie's little sisters. Esperanza knows Marin wears heavy makeup and dark hose. Louie's other cousin, an older boy, comes by one day in a Cadillac and takes everyone for a ride. When a police car follows them, Louie's cousin makes everyone get out, crashes the Cadillac, and is arrested.
