On the first day of third grade, Suds reminiscences about a popular schoolyard rhyme that he first heard in kindergarten: “First grade babies! Second grade cats! Third grade angels! Fourth grade rats!” (1). Although his previous years in school were less than ideal, Suds eagerly anticipates the chance to be considered a third grade angel. When he enters his new classroom, Mrs. Simms greets all the students, referring to them as angels. She then initiates a discussion about the meaning of being an angel, emphasizing that while third graders are not perfect, they should strive to behave well and do their best. She motivates the class by promising a reward for good behavior.

Mrs. Simms states that each week, a student will receive a yellow cardboard halo as recognition for their positive conduct. She engages the class to brainstorm the types of actions that might lead to earning the prize; they list examples such as displaying good behavior, assisting others, completing assignments, being polite, and maintaining cleanliness. Suds impulsively questions whether the known troublemaker Gerald Willis also earned halos in the past, and Mrs. Simms confirms that he did.