in 1935 london, england, michael banks lives in his childhood home. he lives with his children annabel, john and georgie. his wife kate died a year ago. for that reason, ellen and jane are helping him raise the children. however, michael has taken out a loan from the fidelity fiduciary bank to cover his expenses. william weatherall wilkins sends his partners to warn michael that his house will be taken from him if he doesn't repay the loan by friday. michael and jane remember their father left them shares in the bank that can cover the loan. they search the house for the certificate proving their ownership of the shares. during the search, michael finds a kite. but there's no worth in it anymore, so he puts it out to give away.