The novel takes place during the 1950s in Grover's Corner, a small cluster of country homes a few miles outside of Princeton, New Jersey, home of Princeton University. Henry Reed, also known as "Hank," is the thirteen-year-old son of a consul in the U.S. Diplomatic Service. He has come from his family's latest posting in Naples, Italy, to spend the summer with his Uncle Al and Aunt Mabel. He has spent most of his life away from his native country, but he feels quite American. His parents want him to spend an extended time in the States in order to get to know America and his family. For class credit from his school, he decides to detail his daily activities in a journal. The class has been studying American-style free enterprise, so Henry decides to open his own small business for the summer.