Sorry, I had to delay the appearance of Sonic the Hedgehog because I couldn't find anyplace where he could fit in this chapter. I promise that they will meet on the Hogwarts Express!

Harry awoke the next morning thinking that the whole thing was a dream —until he saw Hagrid next to him in the shack. Hagrid told Harry they'd better depart for London, where they would buy his school supplies. As they rowed back to shore, Harry said that he's worried about affording his tuition and supplies because Uncle Vernon won't pay for it. Hagrid told Harry that his parents left him money in Gringotts, the wizarding bank run by Goblins. Hagrid mentioned the bank is impossible to rob because there were spells and dragons guarding the vaults. Plus, the bank extended hundreds of miles, and thieves often got lost.

Their first stop in London was at the Leaky Cauldron, a pub where all the patrons recognized Harry and were both nervous and honored to have the opportunity to meet him. They headed out to the street, where Hagrid tapped on a brick wall, and a small street called Diagon Alley opened before them. Hagrid explained that Harry would buy what he needed for school here. They went to Gringotts, where they were escorted down to Harry's safe. Inside, they viewed the piles of silver and gold that Harry's parents left him. Hagrid explained the complex wizard monetary system, which is composed of Galleons, Sickles, and Knuts. Hagrid filled a small bag with money. He then went to another vault, number 713, which is empty except for a grubby little package that Hagrid picked up and hid in his clothes, warning Harry not to ask about it.

Hagrid then took Harry to be fitted for his uniform. In the store, he encountered a snobbish and unlikable boy who was also starting Hogwarts in September. The snobbish boy talked highly about grand old wizard families, and Harry began to worry about whether he was cut out to be a wizard. But Hagrid reassured Harry, telling him that he would learn all he needs to know and that there were many Muggle students at Hogwarts. After buying the required books and ingredients for potions, Hagrid and Harry then headed to the wand store, Ollivanders. Mr. Ollivander, the storeowner, makes Harry try a number of magic wands, telling him that it will be clear when he has the right one. Harry tries out many wands. Finally, he picks one up ( Eleven inches, Holly and phoenix feather) and sparks shoot out from it—this is clearly the right wand. Ollivander tells Harry that the only other wand containing feathers from the same phoenix belonged to Voldemort and had been used to give Harry his lightning-bolt forehead scar.